The Jammu and Kashmir Consumer Protection Act, 1987

(1 ) This Act may be called the Jammu and Kashmir Consumer Protection Act,1987.

(2) It extends to the whole of the State of Jammu and Kashmir.

(3) It shall come into force on such date as the Government may, by Notification in the Government Gazette, appoint and different dates may be appointed for different provisions of this Act.

(4) Save as otherwise expressly provided by the Government by Notification in the Government Gazette, this Act shall apply to all goods and services.

In this Act unless the context otherwise requires,--

The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.

(1) The Government may, by notification in the Government Gazette establish with effect from such date as it may specify in such notification a Council to be known as the State Consumer Protection Council (hereinafter referred to as the 'State Council') .

(2) The State Council shall consist of the following members, namely :--

(a) the Minister in charge of the Department of Food and Civil Supplies in the Government, who shall be its Chairman ;and

(b) such number of other official or non-official representing such interests as may be prescribed. members

(1) The State Council shall meet as and when necessary, but not less than three meetings of the Council shall be held every year.

(2) The State Council shall meet at such time and place as the Chairman may think fit and shall observe such procedure in regard to the transaction of its business as may be prescribed.

The objects of the State Council shall be to promote and protect the rights of the consumers such as-

(a) the right to be protected against the marketing of goods 1[ and servicing] which are hazardous to life and property; (b) the right to be informed about the quality, quantity, potency, purity, standard and price of goods 1[or servicing as the case may be] so as to protect the consumer against unfair trade practices; (c) the right to be assured, wherever possible, access to a variety of goods 1 [and servicing] at competitive prices ; (d) the right to be heard and to be assured that consumers interests will receive due consideration at appropriate forums ; (e) the right to seek redressal against unfair trade practices or restrictive trade practices unscrupulous exploitation of consumers; (f) right to consumer education.

(1) The Government may, by notification in the Government Gazette establish with effect from such date as it may specify in such notification, a Council to be known as the District Consumer Protection Council, which hereinafter shall be referred to as District Council.

(2) The District council shall consist of the following members, namely:-

(a) Deputy Commissioner of the District, who shall be its Chairman, and (b) Such number of other official or non-official members representing such interests as may be prescribed.

(3) The District Council shall meet as and when necessary, but not less than four meetings of the Council shall be held every year.

(4) The objects of the District Council shall be the same as that of State Council.

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 "Divisional Forum" established by the Government in each division of the State ;.

(b) a Consumer Disputes Redressal Commission to be known as the "State Commission" established by the Government.

(1) Each Divisional Forum shall consist of:-- (a) a person who is or has been, or is qualified to be a District Judge to be nominated by the Government to be its President;

(b) the two members who are persons of ability, integrity and standing and have adequate knowledge or experience of dealing with problems relating to economic, law, commerce, accountancy, industry, public affairs or administration, one of whom to be preferably a lady.

(1-A) Every appointment under Sub-section (1) shall be made by the Government on the recommendation of a Selection Committee consisting of the following, namely:-

(i) The President of the State Commission

… Chairman (ii) The Secretary to Government, Law Department

… Member (iii) The Secretary to Government, Food, Supplies and Transport Department (In charge Consumer Affairs)

… Member.

(2) Every member of the Divisional 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 Government on such resignation being accepted, his office shall become vacant and may be filled by the appointment of a person possessing any of the qualification mentioned in sub-section (1) in relation to the category of the member who has resigned. (3) The salary or honorarium and other allowance payable to, and the other terms and conditions of service “including tenure of office” of the members of the Divisional Forum shall be such as may be prescribed by the Government.

(1) Subject to the other provisions of this Act, the Divisional Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation if any, claimed is less than 4[does not exceed rupees five lakhs].

(2) A complaint shall be instituted in a Divisional Forum within the local limits of whose jurisdiction,--

(a) the opposite party or each of the opposite parties, where Inhere are more than one, at the time of the institution of the complaint, actually and voluntarily resides or 4[carries on business.] or personally works for gain, or [directly or through a branch office (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 personally works for gain,

(c) the cause of action, wholly or in part, arises. 4 [“carry on business directly or through a branch office”]

4[“10. Manner in which complaint shall be made.- 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 Divisional 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 recognized consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or services 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 Divisional Forum on behalf of or for the benefit of all consumers so interested; (d) the Government.

Explanation.- For the purposes of the section “recognized consumer association” means any voluntary association registered under the Companies Act, 1956 or any other law for the time being in force.”] provided that in such case either the permission of the

(1) The Divisional 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 Divisional 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 Divisional Forum, the Divisional 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 without proper analysis or test of the goods, the Divisional Forum shall obtain a sample of the goods from the complaint, 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 from any defect alleged in the complaint or suffer from any other defect and to report its findings thereon to the Divisional 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 Divisional Forum ;

(d) before any sample of the goods is referred to any appropriate laboratory under clause (c) the Divisional 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 Divisional 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 Divisional Forum shall forward a copy of the report along with such remarks as the Divisional 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 Divisional 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 Divisional 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 12.

(2) The Divisional Forum shall, if the complaint received by it under section 10 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 Divisional 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 Divisional Forum, the Divisional Forum shall proceed to settle the consumer disputes,-

(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.

(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 Divisional Forum shall have the same powers as are vested in a civil court under the Code of Civil Procedure, Samvat 1977 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 any 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 Divisional Forum shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Ranbir Penal Code, and the Divisional Forum shall be deemed to be a civil court for the purposes of section 195 and Chapter XVII of the Code of Criminal Procedure, Samvat 1989.

1[“(6) Where the complaint is a consumer referred in sub-clause (iv) of clause (b) of section 2, the provisions of rule 8 of Order 1 of the First Schedule to the Code of Civil Procedure, Samvat 1977 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 Divisional forum thereon.”].

(1) If, after the proceeding conducted under section 11, the Divisional Forum is satisfied that the goods complained against suffer from any of the defect 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 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.

1[(e) to remove the defects or deficiencies in the services in question; (e) to discontinue the unfair trade practice or the restrictive trade practice or not to repeat them; (f) not to offer the hazardous goods for sale; (g) to withdraw the hazardous goods from being offered for sale; (h) to provide for adequate costs to parties.;]

[(2) Every order made by the Divisional Form under Sub-section (1) shall be signed by the majority of members constituting it and it shall be deemed to be the order of the Divisional Consumer Forum:

Provided that where the proceeding is conducted by the President and one member and they differ on any points, they shall state the point or points on which they differ and refer the same to other member for hearing on such point or points and the opinion of the majority shall be the order of the Divisional Forum.”]

(3) Subject to the foregoing provisions, the procedure relating to the conduct of the meetings of the Divisional Forum its sitting and other matters tall be such as may be prescribed by the Government.

Any person aggrieved by an order made by the Divisional Forum may prefer an appeal against such order to the State Commission within 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.

1[“Provided further that no appeal shall lie unless the memorandum of appeal is accompanied by a certificate issued by the President Divisional Forum to the effect that appellant has deposited with him 25% of the amounts payable under the order.”]

(l) Each State Commission shall consist of-

(a) a person who is or has been a Judge of a High Court, appointed by the Government, who shall be its President ;

2[“(b) two or more members who shall be persons of ability, integrity and having adequate knowledge of law and experience in law and consumer affairs:

Provided that every appointment made under this section shall be made by the Government on the recommendation of the Selection Committee consisting of the following, namely:-

(i) Chief Secretary

…

Chairman. (ii) Secretary to Government, Law Department …

Member. (iii) Secretary to Government, Food

and Supplies Department (In charge Consumer

Affairs)

…

Member.”]

(2) The salary of honorarium and other allowances payable to, and the other terms and conditions of service (including tenure of office) of, the members of the State Commission shall be such as may be prescribed by the Government.

Where a complaint instituted before the Divisional Forum or the State Commission, as the case may be, 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.

Where a trader or person against whom a complaint is made or the complainant fails or omits to comply with any order made by the Divisional Forum or the State Commission, as the case may be, such trader or person 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 thousand rupees but which may extend to ten thousand rupees, or with both: Provided that the Divisional Forum, or the State Commission, as the case may be, may, if it is satisfied that the circumstances of any case so require, impose a sentence of imprisonment or fine, or both, for a term lesser than the minimum term and amount lesser than the minimum amount specified in this section.

No suit, prosecution or other legal proceedings shall lie against the members of the Divisional Forum or the State Commission or any Officer or person acting under the direction of the Divisional Forum or the State Commission for executing any order made by it or in respect of anything which is in good faith done or intended to be done by such member, officer or person under this Act, or under any rule or order made thereunder.

(1) If any difficulty arises is giving effect to the provisions of this Act, the Government may, by order in the Government Gazette make such revisions not inconsistent with the Providing of this Act as appear to it to be necessary or expedient for removing the difficulty: Providing that no such order shall be made after the expiry of a period of two years from the commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature.

No act or proceeding of the Divisional Forum or the State commission, as the case may be, shall be invalid by reason only of the existence of any vacancy amongst its member was or any defect in the constitution thereof.

The Government may, by notification, make rules for carrying out the provisions contained in clause (b) of Sub-section (2) of section 4, Sub-section (2) of section 5, Sub-section (3) of section 8, clause (c0 of Sub-section (1) and clause (b) of Sub-section (4) of section 11, Sub-section (3) of section 12, section 13, Sub-section (2) of section 14 of this Act.

Every rule made by the Government under his Act shall be laid, as soon as may be after it is made, before each House of the State legislature, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.