Executing Orders and serving justice to consumers

The Consumer Protection Act, 2019 – marks a significant milestone in the landscape of consumer rights in India. It is enacted to replace the Consumer Protection Act of 1986, wherein the new legislation aims to address the evolving challenges faced by consumers in the modern marketplace. This Consumer Protection Act introduces a comprehensive framework designed to safeguard the interests of consumers, ensuring fair trade practices and accountability across various sectors.

The Consumer Protection Act, 2019 expands on the provisions of its predecessor by incorporating contemporary issues such as e-commerce, misleading advertisements, and product liability. It establishes new regulatory bodies and redressal mechanisms, providing a robust system for the protection and empowerment of consumers. The Central Consumer Protection Authority (CCPA) plays a pivotal role in overseeing the enforcement of the rights of the consumer under the Consumer Protection Act and addressing grievances, while the Consumer Dispute Redressal Commissions (CDRCs) at the district, state, and national levels ensure accessible and speedy resolution of disputes.

By introducing stricter penalties for unfair trade practices and false advertising, the Consumer Protection Act, 2019 aims to create a more transparent and consumer-friendly environment. Additionally, the inclusion of provisions for mediation and online complaint filing reflects a forward-thinking approach to dispute resolution, catering to the needs of today’s digital age.

Overall, the Consumer Protection Act, 2019, represents a proactive effort by the Indian government to enhance consumer welfare and confidence, fostering a fair and just marketplace.

 

Proceedings under Consumer Protection Act, 2019

The Act establishes a hierarchy of Consumer Dispute Redressal Commissions (CDRCs) at the district, state, and national levels to ensure effective resolution. Here’s a detailed overview of how cases are dealt with under the Act:

A complaint can be filed by a consumer/a registered consumer association or group of consumers. These complaints can be filed in person or through mail or even electronically. The Act promotes the use of e-filing and virtual hearings to simplify the process.

While cases are concerned with different nature of disputes, however, consumer cases being of civil nature are bound to follow rules of civil suit which specify that the case shall be instituted in the court of lowest grade. According to the provisions of the Consumer Protection Act, 2019, complaints where the value of goods or services and the compensation claimed does not exceed ₹1 crores need to be filed before the District Commission. Furthermore, complaints where the value of goods or services and the compensation claimed exceeds ₹1 crore but does not exceed ₹10 crore will be filed before the State Commission. The State commission also hears appeals against the orders of the District Commission.

Lastly, complaints where the value of goods or services and the compensation claimed exceeds ₹10 crore are filed before the National Consumer Disputes Redressal Commission. It also hears appeals against the orders of the State Commission.

The cases are usually heard akin to that of a civil suit. Similar to the powers of the civil court, the Commission has the power to issue interim orders to prevent any further harm to the consumer during the pendency of the case. After considering the evidence and hearing both parties, the Commission issues its final order. This may include compensation, replacement or repair of defective products, refund, or other remedies as deemed appropriate. The order must be complied with within the time frame specified by the Commission.

 

Enforcement of Orders under Consumer Protection Act, 2019

The orders of the Commission are enforceable as a decree of a civil court. Non-compliance can lead to attachment of property, imprisonment, or fines.

Under the Consumer Protection Act, 2019, the Complainant, and post adjudication of the case in his favour, Decree-Holder, has the option to choose his mode of execution of the Order under the consumer protection act which are provided under sections 71 and 72 of the Act. 

 

Execution of the Order under the Consumer Protection Act, 2019

Section 71 of the Consumer Protection Act, 2019, outlines the procedures and powers for enforcing the orders passed by the District Commission, the State Commission, and the National Commission. This section is critical to ensuring that the decisions and awards made by these Consumer Dispute Redressal Commissions (CDRCs) are implemented effectively and timely, thereby safeguarding the rights of consumers.

Any order passed by the District Commission, the State Commission, or the National Commission under the Act is deemed to be a decree of a civil court. This legal fiction grants the orders the same authority and enforceability as a civil court’s decree. This means that the mechanisms available for executing a civil court’s decree, such as attachment of property, arrest, and detention in prison, are also applicable to the orders passed under this Act.

A party seeking the enforcement of an order can apply to a civil court having local jurisdiction. This provides a mechanism for ensuring compliance with the Commission’s orders.

The Commission can take various actions to enforce its orders, such as Issuing a warrant for the attachment of the property of the opposite party; Appointing a receiver to manage the attached property; Directing the sale of the attached property to realize the amount due; Imposing penalties for non-compliance.

Section 71 is crucial in ensuring that the decisions of the CDRCs are not merely advisory but are enforceable and binding. This provision enhances the credibility and effectiveness of the consumer redressal mechanism.

Section 71 of the Consumer Protection Act, 2019, plays a pivotal role in the effective implementation of consumer rights by ensuring that the orders of the Consumer Dispute Redressal Commissions are treated with the same seriousness as civil court decrees. This provision not only facilitates the enforcement of consumer rights but also strengthens the overall consumer protection framework in India.

 

Non-Compliance of Order under the Consumer Protection Act, 2019

Section 72 of the Consumer Protection Act, 2019, prescribes penalties for non-compliance of the Order under the Consumer Protection Act issued by the Consumer Dispute Redressal Commissions (CDRCs) at the district, state, and national levels. This section aims to ensure that the orders of these commissions are taken seriously and complied with promptly, thus reinforcing the effectiveness of the consumer protection mechanism.

Section 72 specifies that if a person fails or omits to comply with any order under the Consumer Protection Act made by the District Commission, the State Commission, or the National Commission, they shall be punishable with imprisonment for a term which may extend to three years, or with a fine which may extend to one lakh rupees, or with both.

In the case of a continuing failure to comply with an order, the person may be punished with an additional fine which may extend to fifty thousand rupees for every day during which such non-compliance continues after the first conviction. The trial for such non-compliance may be conducted summarily in accordance with the procedures for summary trials under the Code of Criminal Procedure, 1973.

Section 72 serves as a strong deterrent against non-compliance of the order, ensuring that parties respect and adhere to the orders issued by the CDRCs. This is crucial for maintaining the authority and effectiveness of these bodies. By imposing stringent penalties for non-compliance, the Act reinforces consumer trust in the redressal system. Consumers can be assured that their grievances will be taken seriously and that the orders in their favour will be enforced.

Section 72 of the Consumer Protection Act, 2019, is a critical provision that ensures the enforceability of the orders issued by the Consumer Dispute Redressal Commissions. By stipulating penalties for non-compliance, including imprisonment and fines, this section underscores the importance of adhering to consumer protection orders and reinforces the integrity and authority of the consumer redressal mechanism.

Dilemma between Section 71 and Section 72  of the Consumer Protection Act, 2019

It is observed that the law does not stand clear at the moment with respect to the application of Section 71 and 72 of the Consumer Protection Act, 2019. The main question that needs to be answered is whether both the sections can be invoked simultaneously for the same order? 

It should be noted that in a number of cases, it has been observed and held that the Consumer is at liberty to invoke both the sections simultaneously. Thereby meaning that the Decree-holder is entitled to seek execution and compliance of the Order in either of ways he deems fit and appropriate. However, this raises questions about the misuse of the provisions enacted with the objective of safeguarding and promoting the interests of the consumer. It is possible that the lack of clarity on the application of the sections allows the Decree Holder to seek unjust enrichment along with undue financial benefit by coercing the Judgment Debtor to pay compensation other than specified in the order with the fear of filing an application for Non-Compliance. 

At the same time, there have been judgments by the Hon’ble High Court and Commissions which have observed that both the provisions cannot be invoked at the same time. Rather, the Decree Holder has to opt between the two remedies provided to him. Thereby meaning that the Decree Holder can either opt for enforcing the execution of the Order or seek imprisonment for non-compliance.

 

Conclusion

The Consumer Protection Act 2019 stands as a pivotal reform in safeguarding consumer rights in India. Through the establishment of a robust framework encompassing modern issues such as e-commerce, misleading advertisements, and product liability, the Consumer Protection Act ensures a comprehensive approach to consumer protection. The introduction of the Central Consumer Protection Authority (CCPA) and the Consumer Dispute Redressal Commissions (CDRCs) across various levels fosters accessible and swift dispute resolution.

The Consumer Protection Act’s emphasis on stricter penalties for unfair trade practices and false advertising underscores the commitment to transparency and consumer welfare. Additionally, the incorporation of mediation and online complaint mechanisms reflects an adaptive approach catering to the digital age. The provisions for the enforcement of orders, including the use of civil court powers and penalties for non-compliance, ensure that consumer rights are upheld with the same seriousness as civil decrees.

Despite some ambiguities between Sections 71 and 72 regarding enforcement and penalties, the overarching intent of the Act remains clear: to provide consumers with a reliable and effective redressal system. The possibility of invoking both sections simultaneously, while debated, highlights the need for clarity to prevent misuse and ensure fair application.

Overall, the Consumer Protection Act 2019 marks a significant advancement in the legal landscape, aiming to create a fair, transparent, and consumer-friendly marketplace. By reinforcing consumer trust and ensuring justice, the Consumer Protection Act paves the way for enhanced consumer confidence and welfare in India.