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Commercial Law




                    Notes          The Consumer Protection Act, 1986 was substantially amended in 1991, 1993 and 2002.

                                   Complainant. A complainant means any of the following and having made a complaint:
                                   1.   a consumer; or
                                   2.   any voluntary consumer association registered under the Companies Act, 1956 or under
                                       any other law for the time being in force; or

                                   3.   the Central Government or any State Government; or
                                   4.   one or more consumers, where there are numerous consumers having the same interest,
                                       or

                                   5.   in case of death of consumer, his legal heir or representative.
                                   Complaint. ‘Complaint’ means any allegation in writing made by a complainant with a view to
                                   obtaining any relief under the Act, that:
                                   1.   any unfair trade practice or restrictive trade practice has been adopted by any trader or
                                       service provider; and the complainant has suffered loss or damage;
                                   2.   the goods bought by him or agreed to be bought by him suffer from defect(s) in any
                                       respect.

                                   3.   the services hired or availed of or agreed to be hired or availed of by him suffer from
                                       deficiency in any respect;

                                   4.   a trader or the service provider, as the case may be, has charged for the goods or for the

                                       services mentioned in the complaint, a price in excess of the price (a) fixed by or under any
                                       law for the time being in force; (b) displayed on the goods or any package containing such
                                       goods; (c) displayed on the price list exhibited by him by or under any law for the time
                                       being in force; (d) agreed between the parties;
                                   5.   goods which will be hazardous to life and safety when used are being offered for sale to
                                       the public (a) in contravention of any standards relating to safety of such goods as required
                                       to be complied with, by or under any law for the time being in force; (b) if the trader could
                                       have known with due diligence that the goods so offered are unsafe to the public;
                                   Consumer. ‘Consumer’ means any of the following persons:
                                   1.   A person who buys any goods for a consideration which has been paid or promised or
                                       partly paid and partly promised or under any system of deferred payment i.e., in respect
                                       of hire-purchase transactions. The term includes any other user of such goods when such
                                       use is made with the approval of the buyer.
                                   2.   A person who hires or avails of any services for consideration which has been paid or
                                       promised or partly paid and partly promised, or under any system of deferred payment.
                                       The term includes any other beneficiary of such services with the approval of the fi rst

                                       mentioned person.

                                          Example: Byford Motors inserted an advertisement in newspapers stating that a person
                                   booking a Premier Padmini car could enter into a contest in a lottery conducted by them. Under
                                   it, a person who was successful in the draw could be entitled to two free tickets from New Delhi
                                   to New York and back. Shri S.S. Srivastava was one of the persons who was successful in the
                                   draw. He asked the dealers to give him the value of two tickets which was refused and he was
                                   asked to produce two passports to enable them to book the tickets. Mr. Srivastava, however,
                                   produced one passport immediately but the second after the end of the financial year. The dealer


                                   refused to give the tickets on the ground that the accounts of the financial year had been closed

                                   and they could not carry forward the liability of that year to the next financial year under the
                                   provisions of the Income-tax Act and Rules.


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