CHAPTER III CONSUMER DISPUTES REDRESSAL AGENCIES

9. Establishment of Consumer Disputes Redressal Agencies

There shall be established for, the purposes of this Act, the following agencies, namely:- (a) a Consumer Disputes Redressal Forum to be known as the "District Forum" established by the State Government 1[* * *]in each district of the State by notification: 2[Provided that the State Government may, if it deems fit, establish more than one District Forum in a district;] (b) a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the State Government 3[* * *] in the State by notification; and (c) a National Consumer Disputes Redressal Commission established by the Central Government by notification.

COMMENTS

(i) If a redressal forum has no jurisdiction, it cannot entertain the complaint on merits; Solvochen Intermediates Pvt. Ltd. v. Boilertech Engineers Pvt. Ltd., 1992 (11) CPR 322. (ii) When no objection was taken to the territorial jurisdiction of District Forum by filling written version, the objection cannot be entertained in appeal raised orally; Essen Computers Ltd. v. Tagore Gracias, 1992 () CPR 556. (iii) One or more consumers can file complaint; Chief General Manager, Calcutta Telephones v. International Packers & Movers, (1 994) CPJ 132: 1994 () CPR 252.

10. Composition of the District Forum.

4[(1) Each District Forum shall consist of, (a) a person who is, or has been, or is qualified to be a District Judge, who shall be its President; (b) two other members, who shall be persons of ability, integrity and standing, and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration , one of whom shall be a woman.]

1. Omitted by Act 50 of 1993, sec. 7 (w.e.f 18-6-1993).

2. Ins by Act 50 of 1993, see. 7 (w.e.f 18-6-1993).

3. Omitted by Act 50 of 1993, sec. 7 (wet 18-6-1993).

4. Subs. by Act 50 of 1993, see. 8 (w.e.f. 18-6-1993).

1[(1A) Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely (I) the President of the State Commission Chairman. (ii) Secretary, Law Department of the State - Member. (iii) Secretary, incharge of the Department dealing with consumer affairs in the State Member.] (2) Every member of the District Forum shall hold office for a term of five years or up to the age of 65 years, whichever is earlier, and shall not be eligible for re-appointment: Provided that a member may resign his office in writing under his hand- addressed to the State Government and on such resignation being accepted, his office shall become vacant and may be filled by the appointment of a person possessing any of the qualifications mentioned in sub-section (1) in relation to the category of the member who has resigned. (3) The salary or honorarium and other allowances payable to, and the other terms and conditions of service of the members of the District Forum shall be such as may be prescribed by the State Government.

11. Jurisdiction of the District Forum.

(1) Subject to the other provision's of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed 2[does not exceed rupees five lacks]. (2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,- (a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or '[carries on business or has a branch office or] personally works for gain, or (b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or '[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or '[carry on business or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or (c) the cause of action, wholly or in part, arises.

COMMENTS

(I) A petition of complaint can be filed against corporation carrying on business within the territory of District Forum or Commission even though its sole or principal office is situated outside state limits; Consumer Education and Research Society v. Canara Bank, (1991) 1 CPR 405. (ii) Objections regarding territorial jurisdiction should be taken at the earliest opportunity or the same deemed to have been waived; Kurukshetra University v. Vinay Prakash Verma, II (1 993) CPJ 647.

1. Ins. by Act 50 of 1993, see. 8 (w.e.f. 18-6-1993).

2. Subs. by Act 50 of 1993, see. 9 (w.e.f 18-6-1993).

1[12. Manner in which complaint shall be made.

a complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by- (a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided', (b) any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not (c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or (d) the Central or the State Government. Explanation.-For the purpose of this section, "recognised consumer association" means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force.]

COMMENTS

(I) A municipality has been ordered to pay damages for shortage of drinking water; Wangdi Tshering v. Chairman, Kurseong Municipality, 1993 (2) CPR 476. (ii) Compensation of Rs.5 lacks was awarded for non-delivery of possession of plot and wrongful cancellation; P. Parthasarthy v. The TamilNadu Housing Board, 1993 (2) CPR 445.

13. Procedure on receipt of complaint.

(1) The District forum shall, on receipt of a complaint, if it relates to any goods, (a) refer a copy of the complaint to the opposite party mentioned in the complaint directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute in the manner specified in clauses (c) to (g)., (c) where the complaint alleges a defect in the goods which cannot be determined with out proper analysis or test of the goods, the District Forum shall obtain as ample of the goods from the complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to the appropriate laboratory along with a direction that such laboratory make an analysis or test, whichever may be necessary, with a view to finding out whether such goods suffer from any defect alleged in the complaint or from any other defect and to report its findings thereon to the District Forum within a period of forty-five days of the receipt of the reference or within such extended period as may be granted by the District Forum; (d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the District Forum may require the complainant to deposit to the credit of the Forum such fees as may be specified , for payment to the appropriate laboratory for carrying out the necessary analysis or test in relation to the goods in question; (e) the District Forum shall remit the amount deposited to its credit under clause (d) to the appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of the report along with such remarks as the District Forum may feel appropriate to the opposite party; (f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory, the District Forum shall require the opposite party or the complainant to submit in writing his objections in regard to the report made by the appropriate laboratory; (g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as the opposite party of being heard as to the correctness or otherwise of the report made by the appropriate laboratory and also as to the objection made in relation thereto under clause (f) and issue an appropriate order under section 14. (2) the District Forum shall, if the complaint received by it under section 12 relates to goods in respect of which the procedure specified in sub-section (1) cannot be followed, or if the complaint relates to any services,- (a) refer a copy of such complaint to the opposite party directing him to give his version of the case within a period of thirty days or such extended period not exceeding fifteen days as may be granted by the District Forum; (b), where the opposite party, on receipt of a copy of the complaint, referred to him under clause (a) denies or disputes the allegations contained in the complaint, or omits or fails to take any action to represent his case within the time given by the District Forum, the District Forum shall proceed to settle the consumer dispute,- (I) on the basis of evidence brought to its notice by the complainant and the opposite party, where the opposite party denies or disputes the allegations contained in the complaint, or (ii) on the basis of evidence brought to its notice by the complainant where the opposite party omits or fails to take any action to represent his case within the time given by the Forum.

1. Subs. by Act 50 of 1993, see. 1 0 (w.e.f 18-6-1993)

(3) No proceedings complying with the procedure laid down in sub-sections (1) and (2) shall be called in question in any court on the ground that the principles of natural justice have not been complied with. (4) For the purposes of this section, the District Forum shall have the same powers as are vested in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:- (I) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath, (ii) the discovery and production of any document or other material object producible as evidence, (iii) the reception of evidence on affidavits, (iv) the requisitioning of the report of the concerned analysis, or test from the appropriate laboratory or from an' other relevant source. (v) issuing of any commission for the examination of any witness, and (vi) any other matter which may be prescribed. (5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860), and the District Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 1[(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section 2, the provisions of rule 8 of Order 1 of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon.]

COMMENTS

(I) When the case is not a simple case of deficiency in service and involves determination of complex questions of facts and law, which cannot be satisfactorily determined by the redressal agency in the time frame provided under the -Rules, it would be better for the complainant to seek redress of his grievances in a Civil Court, if so advised; Harbans & Co. v. State Bank of India; II (1994) CPJ 456: 1994 (I) CPR 381. (ii) If "*fraud" is alleged, it is desirable that the complainant should be directed to Civil Court as investigation about such fraud is required to be done; Jayantilal Keshaylal Chauhan v. The National Insurance Co. Ltd., 1994 (I) CPR 396. (iii) A consumer knocking at the door of the redressal agencies under the Act for relief in a consumer dispute must do so with clean hands; Sagli Ram v. General Manager, United India Insurance Co. Ltd., II (1 994) CPJ 444: 1994 (I) CPR 434.

14. Finding of the District Forum.

(1) If, after the proceeding conducted under section 13, the District Forum is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services are proved, it shall issue an order to the opposite party directing him to 2[do] one or more of the following things, namely. (a) to remove the defect 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 complainants, (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;

1. Ins. by Act 50 of 1993, sec. 11 (w.e.f 13-6-1993).

2. Subs. by Act 50 of 1993, sec. 12 (wet 18-6-1993).

1[(e) to remove the defects 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; (I) to provide for adequate cost's to parties.] 2[(2) Every proceeding referred to in sub-section (1) shall be conducted by the President of the District Forum and at least one member thereof sitting together: the member, for any reason, is unable to conduct the proceeding till it is completed, the President and the other member shall conduct such proceeding novo. (2A) Every order made by the District Forum under sub-section (1) shall be signed by its President and the member or members who conducted the proceeding: Provided that where the proceeding is conducted by the President and one member and they differ on any point or points, they shall state the point or points on which they differ and refer the same to the other member for hearing on such point or points and the opinion of the majority shall be the order of, the District Forum.] (3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the District Forum, its sittings and other matters shall be such as may be prescribed by the State Government.

COMMENTS

(I) Compensation is to be given for loss or injury suffered by a consumer, due to negligence of the opposite p"; S.K Lakhotia v. National Insurance Co. Ltd., t994 (I) CPR 43. (ii) The party to be awarded compensation has not only to show deficiency in service but also the negligence of the other party and without the finding of negligence there cannot be any award; Director, Himachal Institute of Engineering & Technology v. Anil Kumar Gupta, 1994 (I) CPR 182. (iii) Delay in delivery after booking of a car is no deficiency; M/s. Maruti Udyog Ltd. v. Mrs. Bhuvana Viswanathan, II (1993) CPJ 172 (NC). (iv) Redressal forums have no jurisdiction in matters involving outright sale of immovable property at an auction; Allied (Garments) Exports Industries Pvt. Ltd. v. D.D.A. II (1992) CPJ 505 (NC). (v) Consumer Forums have no jurisdiction to pass interim orders; District Manager, Telephones v. Mls. Munilal Br# Mohan, I (1 993) CPJ 41 (NC). (vi) If a consumer sustained any loss or damage actually, he is entitled to compensation; Padmanav Dash v. Divisional Railway. Manager, S.E. Rly, 199.4 (I) CPR 77. (vii) The Fora have no jurisdiction to pass interim order. The complaint was filed to restrain a public issue. It was also held that unsuccessful applicants, who have not been allotted any shares can not prefer a complaint under the Act; Morgan Stanley v. Kartik Das, II (1 994) CPJ 7 (SC).

1. Ins. by Act 50 of 1993, see. 12 (w.e.f. 18-6-1993).

2. Subs. by Act 34 of 1991, see. 2 (w.e.f. 15-6-1991),

15. Appeal.

Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the State Commission with in a period of thirty days from the date of the, order, in such form and manner as may be prescribed: Provided that the State Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

COMMENTS

(I) The appellate fora constituted under the Act should not dismiss the appeal merely on the ground of default of appearance of the appellant but the merits of the case should be considered on the basis of the material available before them and thereafter pass appropriate order in the appeal; General Manager, Telecom v. Jyantilal Hemchand Gandhi, 1993 (III) CPR 155. (ii) Ordinarily, the appellate Court does not interfere with the compensation awarded unless@ it is too inadequate or too excessive; Narmada v. Suresh Chandra Mittal, 1993 (I) AJR 63 1.

16. Composition of the State Commission.

(1) Each State Commission shall consist of (a) a person who is or has been a Judge of a High Court, appointed by the State Government, who shall be its President: 1[Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of the High Court;] (b) two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman: 1[Provided that every appointment made under this clause shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely:- (I) President of the State Commission Chairman. ii) Secretary of the Law Department of the State Member. (iii) Secretary, in charge of Department dealing with consumer affairs in the State Member.] (2) The salary or honorarium and other allowances payable to, and the other terms and conditions of service 1[* * *] of, the members of the State Commission shall he such as may be prescribed by the State Government. 3[(3) Every member of the State Commission shall hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier and shall not be eligible for re- appointment.

1. Ins. by Act 50 of 1993, see. 13 (w.e.f. 18-6-1993).

2. Omitted by Act 50 of 1993, see. 13 (w.e.f. 18-6-1993).

3. Ins. by Act 50 of 1993, sec. 13 (w.e.f. 18-6-1993).

(4) Not with standing anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 1993, shall continue to hold such office as President or member, as the case may be, till the completion of his term.]

17. JurisdictionoftheStateCommission.

Subject to the other provisions of this Act, the State Commission shall have jurisdiction- (a) to entertain- (I) complaints where the value of the goods or services and compensation , if any, claimed exceeds rupees '[five lacks but does not exceed rupees twenty lacks]; and (ii) appeals against the orders of any District Forum within the State; and (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.

COMMENTS

Even if the appeal is not maintainable, the State Commission can still treat and, decide, the same as revision in exercise of its power under section 17(b) of the Act; C.R. Kataria, Telecom District Manager v. The Consumer Disputes Redressal District Forum, 1991 (II) CPJ 682.

18. Procedure applicable to State Commissions.

2[The provisions of Sections 12, 13 and 14 and the rules made there under] for the disposal of complaints by the District Forum shall, with such modifications as may be necessary, be applicable to the disposal of disputes by the State Commission.

COMMENTS

Section 11 (2) (c) is not made applicable under section 18 of the Act. However, principle in respect of territorial jurisdiction of a State Commission would be governed under the Code of Civil Procedure; Arisetty Sanyasi Raju v. Hindustan Motors Ltd., 1992 (I) CPR 689.

3[18A. Vacancy in the office of the President.

When the office of the President of the District Forum or of the State Commission, as the case may be, is vacant or when any such President is, by reason of absence or otherwise, unable to perform the duties of his office, the duties of the office shall be performed by such person, who is qualified to be appointed as President of the District Forum or, as the case may be, of the State Commission, as the State Government may appoint for the purpose.]

19. Appeals.

Any person aggrieved by an order made by the State Commission in exercise of its powers conferred by sub-clause (I) of clause (a) of section 17 may prefer an appeal against such order to the National Commission within a period of thirty days from 'the date of the order in such form and manner as may be prescribed:

1. Subs. by Act 50 of 1993, see. 14 (w.e.f 18-6-1993).

2. Subs. by Act 50 of 1993, see. 15 (w.e.f. 18-6-1993).

3.Ins. by Act 34 of 1991, see. 3 (w.e.f. 15-6-1991). s

Provided that the National Commission may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it with in that period.

20. Composition of the National Commission.

(1) The National Commission shall consist of- (a) a person who is or has been a Judge of the Supreme Court, to be appointed by the Central Government, who shall be its President; 1[Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India;] (b) four other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with, problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman: 1[Provided that 'every appointment under this clause shall he made by the Central Government on the recommendation of a selection committee consisting of the following, namely: a) a person who is a Judge of the Supreme to be nominated by the Chief Justice of India Court, Chairman. b) the Secretary in the Department of Legal Affairs in the Government of India Member. (c) Secretary of the Department dealing with consumer affairs in the Government of India Member.] (2) The salary or honorarium and other allowances payable to and the other terms and conditions of service 2[* * *] of the members of the National Commission shall be such as may be prescribed by the Central Government. 3[(3) Every member of the National Commission shall hold office for a ten of five years or up to the age of seventy years, whichever is earlier and shall not be eligible for re- appointment. (4) Not with standing anything contained in sub-section (3), a person appointed as a President or as a member before the commencement of the Consumer Protection (Amendment) Act, 1993, shall continue to hold such office as President or member, as the case may be, till the completion of his term.]

21. Jurisdiction of the National Commission.

Subject to the other provisions of this Act, the National Commission shall have jurisdiction- (a) to entertain (I) complaints where the value of the goods or services and compensation, if any,

1. Ins. by Act 50 of 1993, sec. 16 (w.e.f 18-6-1993).

2. Omitted by Act 50 of 1993, sec. 16 (w.e.f. 18-6-1993).

3. Ins. by Act 50 of 1993, sec. 16 (wet 18-6-1993).

claimed exceeds rupees 1[twenty lacks); and (ii) appeals against the orders of any State Commission; and (b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

COMMENTS

The powers of National Commission are very limited; Kangara Ananth Ram v. Telecom Distt. Engineer, (1991) 1 CPR 391.

2[22. Power. of and procedure applicable to the National Commission.

The National Commission shall, in the disposal of any complaints or any proceedings before it, have (a) the powers of a civil court as specified in sub-sections(4),(5)and(6)ofsectionl3; (b) the power to issue an order to the opposite party directing him to do any one or more Of the things referred to in clauses (a) to (I) of sub-section (1) of section 14, and follow such procedure as may be prescribed by the Central Government].

23. Appeal.

Any person, aggrieved by an order made by the National Commission in exercise of its powers conferred by sub-clause (I) of clause (a) of section 2 I, may prefer an appeal against such order of the Supreme Court within a period of thirty days from the date of the order: Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that there was sufficient cause for not filing it within that period.

24. Finality of orders.

Every order of a District Forum, the State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final.

3[24A. Limitation period.

1) The District Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. (2) Notwithstanding anything contained in sub-section (1), a complaint may be entertained after the period specified in sub-section (1), if the complainant satisfies the District Forum, the State Commission or the National Commission, as the case may be, that he had sufficient cause for not filing the complaint within such period: Provided that no such complaint shall be entertained unless the National Commission, the State Commission or the District Forum, as the case may be, records its reasons for condoning such delay.

1. Subs. by Act 5O of 1993, see. 17 (w.e.f 18-6-1993).

2. Subs. by Act 50 of 1993, see. 18 (w.e.f. 18-6-1993).

3. Ins. by Act 50 of 1993, sec. 19 (w.e.f. 18-6-1993).

24B. Administrative Control.

(1) The National Commission shall have administrative control over all the State Commissions in the following matters, namely :- (I) calling for periodical return regarding the institution, disposal, tendency of cases (ii) issuance of instructions regarding adoption of uniform procedure in the hearing of matters, prior service of copies of documents produced by one party to the opposite parties, furnishing of English translation of judgments written in any language, speedy grant of copies of documents; (iii) generally overseeing the functioning of the State Commissions or the District Fora to ensure that the objects and purposes of the Act are best served without in any way. interfering with their quasi-judicial freedom. (2) The State Commission shall have administrative control over all the District Fora within its jurisdiction in all matters referred to in sub-section (1)].

25. Enforcement of orders by the Forum, the State Commission or the National Commission.

Every order made by the District 'Forum, the State Commission or the National Commission may be enforced by the District Forum, the State Commission or the National Commission, as the case may be, in the same manner as if it were decree or order made by a court in a suit pending therein and it shall be lawful for the District Forum, the State Commission or the national Commission to send, in the event of its inability to execute it, such order to the court within the local limits of whose jurisdiction,- (a) in the case of an order against a company, the registered office of the company is situated, or (b) in the case of an order against any other person, the place where the person concerned voluntarily resides or carries on business or personally works for gain, is situated, and thereupon, the court to which the order is so sent, shall execute the order as if it were a decree or order sent to it for execution.

1[26. Dismissal of frivolous or vexatious complaints.

Where a complaint instituted before the District Forum, the State Commission or, as the case may be, the National Commission is found to be frivolous or vexatious, it shall, for reasons to be recorded in writing, dismiss the complaint and make an order that the complainant shall pay to the opposite party such cost, not exceeding ten thousand rupees, as may be specified in the order.]

COMMENTS

(I) Where the issue involved is a legal issue, the complaint cannot said to be frivolous; Rasikatal Mohan v. Apollo Tyres Lid., 1992 (II) CPR 327. (ii) Where the, complaint is mala fide, vexatious and frivolous and -the opposite party has to incur expenses for contesting the complaint, the Redressal Fora should, saddle the complainant with costs; K. Jayaraman V. 7he Poona Hospital & Research Centre, 1994 (I) CPR 23. (iii) Merely because no court fee is payable for lodging a complaint before the consumer forums, parties have a tendency to misuse the provisions of the Consumer Protection Act in respect of matters not falling within its purview. This tendency must be discouraged; Orissa Vegetable Oil Complex Ltd. .v. State of Orissa, 1994 (I) CPR 32

1. Subs, by Act 50 of 1993, sec. 20 (w.e.f 18-6-1993).

(iv) Cost can be saddled with only in case of fraudulent or vexatious complaints; Vihol Jaswanisingh Shivaji v. The Asstt. Branch Manager, New India Insurance Co. Ltd., 1994 (I) CPR 417.

27. Penalties

Where a trader or a person against whom a complaint. is made 1[or the complainant] fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person '[or complainant] shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousands rupees but which may extend to ten thousand rupees, or with both: Provided that the District Forum, the State Commission or the National Commission, as the case may be, may, if it is satisfied that the circumstances of any case so require, impose 9 sentence of imprisonment or fine, or both, for a term lesser than the minimum term and the amount lesser than the minimum amount, specified in this section.