Page 271 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 13.5 Nature and Scope of Remedies under the Act

In terms of Section 14(1) of the Act, where the goods complained against suffer from any of the
defects specified in the complaint or any of the allegations contained in the complaint about the
services are proved, the District Forum/State Commission/National Commission may pass
one or more of the following orders:
(a) to remove the defects pointed out by the appropriate laboratory from the goods in question;
(b) to replace the goods with new goods of similar description which shall be free from any
defect;
(c) to return to the complainant the price, or, as the case may be, the charges paid by the
complainant;
(d) to pay such amount as may be awarded by it as compensation to the consumer for any loss
or injury suffered by the consumer due to the negligence of the opposite party;
Provided that the Forum/Commission shall have the power to grant positive damages in
such circumstances as it deems fit;
(e) to remove the defects in goods or deficiencies in the services in question;
(f) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat
them;
(g) not to offer the hazardous goods for sale;
(h) to withdraw the hazardous goods from being offered for sale;

(ha) to cease manufacture of hazardous goods and to desist from offering services which
are hazardous in nature;

(hb) to pay such sum as may be determined by it if it is of the opinion that loss or injury has
been suffered by a large number of consumers who are not identifiable conveniently:
It is to be noted that the minimum amount of sum so payable shall not be less than five
percent of the value of such defective goods sold or service provided, as the case may be,
to such consumers. Further, the amount so obtained shall be credited in favour of such
person and utilized in such manner as may be prescribed.

(hc) to issue corrective advertisement to neutralize the effect of misleading advertisement
at the cost of the opposite party responsible for issuing such misleading advertisement;

The remedies that can be granted by the redressal agencies are therefore, wide enough to cover
removal of defects/deficiency in goods/services, replacing defective goods with new goods,
refunding price/charges paid by the complainant, payment of compensation for loss or damage
suffered, providing costs to parties and issuing prohibitory orders directing the discontinuance
of unfair trade practice, sale of hazardous goods etc. However, the redressal agencies have not
been granted power to order injunctions.

Section 14(1)(d) provides that the redressal agency may order payment of compensation only in
the event of negligence of the opposite party which resulted in loss or damage and not otherwise,
i.e. even though the complainant has suffered loss or damage, he may not be entitled for
compensation if he cannot prove negligence.

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