New Consumer Protection Act to come into force from 20th July 2020: State Commission to have limit upto 10cr

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By SRELJ Bureau

The salient features of The Consumer Protection Act, 2019 :

1. All the District forums are renamed as District Commissions. Hence forth all the District Forum now be called as Commissions.

2. To file an appeal, Opposite Party needs to deposit upto 50% of the amount ordered by District Commission.

3. An appeal can be now filed within 45 days of Order.

4. The original pecuniary jurisdiction of District Commission shall be uptil Rs. 1 Crore, State Commission from 1 Cr – 10 Cr. and NCDRC to be more than Rs. 10 crore. All Orders for aggregations of consumer will be applicable.

5. Now complainant can also institute the complaint within the territorial jurisdiction of the Commission where the complainant resides or personally works for gain besides what was provided earlier

6. Very important provisions under Section 49(2) and 59(2) of the new act gives power to the State Commission and NCDRC respectively to declare any terms of contract, which is unfair to any consumer, to be null and void.

7. A second appeal to NCDRC has been provided U/s 51(3) if there is a substantial question of law involved in the matter

8. Power of revision can still be exercised by NCDRC U/s 58(1)(b) and by State commission under 47(1)(b) of the Act.

9. Power of review has been conferred to District Commission, State Commission and NCDRC U/s 40, 50 and 60 of the Act respectively

10. NCDRC can hear appeals against the order of Central Authority by virtue of Section 58 of the Act

11. Period of limitation in filing of complaint remains 2 years with a provision for condonation of delay power U/s 69 of the Act

12. Section 70 provides for administrative control of State Commission over District Commission and that of NCDRC over State Commission. It inter alia provides for investigation into any allegations against the President and members of a State Commission / District Commission and submitting inquiry report to the State Government concerned along with copy endorsed to the Central Government for necessary action

13. Mediation is given statutory status by way of introduction of Section 74 in the new Act. As a new measures to solve problems out of court and through mediation, this new initiative has been provided.

14. A product liability action may be brought by a complainant against a product manufacturer or a product service provider or a product seller, as the case may be, for any harm caused to him on account of a defective product.

15. Chapter III of the Act provides for creation of Central Authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class

16. The Central Authority shall have an Investigation Wing headed by a Director General for the purpose of conducting inquiry or investigation under this Act as may be directed by the Central Authority.

With new New Consumer Protection Act, which was awaited long back there was huge confusion as to financial jurisdiction. Now after the notifications, State Commission now can deal with transactions up to 10 cr.

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