Table of Contents

PART – A

Q1. Define Goods.

Ans. According to Section 2(21) of the CPA, 2019, Goods means every kind of movable property and includes “food” as defined in section 3(1)(j) of the Food Safety and Standard Act, 2006.

Q2. What do you mean by defect in goods?

Ans. According to Section 2(10) of the CPA, 2019, Defect means any fault, imperfection in the quality, quantity, potency, purity, or standard which is required to be maintained by or under any law for the time being in force, or under any contract, expressed or implied, or as is claimed by the trader in any manner whatsoever in relation to any product/service and expression defective shall be construed accordingly.

Q3. When a person is not consumer?

Ans. Under the CPA 2019, the definition of a consumer is strictly tied to the concepts of consideration (payment) and purpose. A person is excluded from the definition of a "consumer" if they fall into any of the following categories:

  1. Persons Obtaining Goods or Services Free of Charge
  2. Persons Obtaining Goods for Resale or Commercial Purposes. Exception (Self-Employment).
  3. Persons Availing Services under a "Contract of Service"

Q4. Whether deficiency in service can be claimed for services rendered free of charge?

Ans. According to the Consumer Protection Act, 2019, a deficiency in service cannot be claimed for services rendered free of charge. Section 2(42) of the CPA, 2019 defines "service" but specifically excludes services provided free of charge or under a contract of personal service. A "consumer" is defined as someone who hires or avails services for a consideration (paid or promised).

Q5. Whether patient in a government hospital is a consumer?

Ans. Under the Consumer Protection Act (CPA), 2019, a patient in a government hospital is not considered a consumer if the services are provided entirely free of charge to everyone. However, they are considered a consumer if they pay any amount (even a token/registration fee) for the service, or the government hospital provides free services to the poor but charges other patients for the same service.

Q6. Name two consumer rights.

Ans. Right to Safety; Right to be Informed.

Q7. What is ex-parte order?

Ans. An ex-parte order is one passed without hearing one of the parties, usually because that party failed to appear in court/commission despite proper notice. This is generally done to avoid unnecessary delays and ensure swift justice.

Q8. What is a class action?

Ans. Class Action (also known as a representative standing) is a procedural device that allows one or more plaintiffs to file and prosecute a lawsuit on behalf of a larger group, or "class," of people who have suffered similar legal injuries. Under the Consumer Protection Act (CPA), 2019, this concept is central to ensuring that justice is accessible even when individual claims might be too small to pursue independently.

Q9. How the order of district forum is executed?

Ans. In the 2019 Act the enforcement of the orders passed by the District, State or National consumer dispute redressal commissions is dealt with under Section 71. According to Section 71 of the 2019 Act, every order made by the District, State or National commission shall be enforced in the same manner as that of a decree of a civil court in accordance with Order 21 of the Civil Procedure Code, 1908.

Q10. What is the jurisdiction of state forum? [State Commission (CPA, 2019)]

Ans. Section 47 of the CPA, 2019, states the jurisdiction of State Commission:

  1. Territorial Jurisdiction – A suit can be filed in State Commission, within whose local limits: -
  1. The party against whom the claim is made actually or voluntarily, resides or carries in business or personally works for gain.
  2. Where there are more than one opposite party and any such party actually or voluntarily, resides or carries on business or personally works for gain.
  3. The cause of action wholly or partially arises.
  1. Appellate Jurisdiction – State Commission has powers to adjudicate upon the appeals made upon the orders of District Commission. Any person aggrieved by any order made by District Commission, may prefer an appeal against such order within 45 days from the date of the order. However, the State Commission may entertain an appeal after the expiry of 45 days, if it is satisfied that there was sufficient cause for delay.
  2. Pecuniary Jurisdiction –

According to,

CPA, 2019: above 1 cr. - 10 cr.

CPA, 1986: 20 lakhs – 1cr.

Revised rules, 2021: 50 lakhs – 2cr.

PART – B

Q11. Who is a consumer? Explain.

Ans. The Consumer Protection Act (CPA), 2019, is a milestone in Indian legislation designed to protect the interests of consumers in an increasingly complex marketplace. At its core, the Act aims to provide a fast-track grievance redressal mechanism. However, to benefit from this "shield," one must first qualify as a "Consumer."

A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Section 2(7) of the Act defines ‘consumer’ as ANY person who:

  1. 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 and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
  2. hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration  paid or promised, or partly paid partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.

The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Beneficiary of Services is also a Consumer

When A hire services from B, may hire it for himself or for any other person. In such a case, the beneficiary (user) of these services is also a consumer.

Example – A takes his son ‘B’ to a doctor for B’s treatment. Here ‘A’ is hirer of services of the doctor and ‘B’ is beneficiary of these services. For the purpose of the act, both A and B are consumers. This is an exception to the rule of Privity of Contract.

Q12. What are the basic objectives of Consumer Protection Act, 1986? [CPA, 2019 in present context]

Ans. The primary goal of the CPA is to shift the market philosophy from Caveat Emptor (Let the buyer beware) to Caveat Venditor (Let the seller beware).

A. Comprehensive Protection of Rights

The Act is designed to protect the six fundamental consumer rights:

  1. Right to Safety against hazardous goods.
  2. Right to be Informed about quality, quantity, and price.
  3. Right to Choose from a variety of goods at competitive prices.
  4. Right to be Heard in appropriate forums.
  5. Right to Seek Redressal against unfair trade practices.
  6. Right to Consumer Education.

B. Effective and Speedy Redressal

The Act establishes a three-tier quasi-judicial mechanism (District, State, and National Commissions). By ensuring these forums are headed by individuals with judicial experience, the Act ensures that decisions are legally sound.

C. Market Regulation and Monitoring

The Act acts as a deterrent against the "future market" manipulation of essential commodities. The act also monitors the quality of products in the market. By promoting certification schemes (like ISI or AGMARK), the Act ensures that the production of goods meets national safety and quality benchmarks.

Q13. Explain about constitution and procedure of Central Consumer Protection Council.

Ans. Constitution and procedure of CCPC under CPA, 2019:

Section 3(1): requires the central government to establish by notification a Central Consumer Protection Council (CCPC) for the purpose of the act. The central government has made the consumer protection council rules, 2020, which came into force on 20 July, 2020. The rules provide for the establishment and constitution of the central council.

Composition of the Central Council:

Section 3(2) of the act provides that the central council shall be an advisory council and consist of the following members namely: -

  1. The minister in-charge of the department of consumer affairs in the central government; who shall be the chairperson of the central council.
  2. The minister of state in-charge of the consumer affairs in the central government; who shall be the vice-chairperson.
  3. The minister in-charge of the consumer affairs of two of the states from each region as mentioned in Schedule 1, to be changed by rotation on expiration of the term of the council.
  4. An administrator of a Union Territory to represent that UT, as mentioned in Schedule 2, to be changed by rotation on expiration of the term of the council.
  5. Two members of parliament, one from the Lok Sabha and one from the Rajya Sabha.
  6. Representatives of departments of the central government, autonomous organisations, or regulator, concerned with the consumer interest – not exceeding 5, to be nominated by the central government.
  7. The chief commissioner of the CCPA.
  8. The Registrar, National Consumer Dispute Redressal Commission, New Delhi.
  9. Representatives of active consumer organisations - not exceeding 5, to be nominated by the central government.
  10. Representatives with proven expertise and experience, who are capable of representing consumer interest. One from each of 5 regions; at least one woman.
  11. The secretaries in-charge of the consumer affairs in the state to be nominated by the central government – not exceeding 3.
  12. The secretary in-charge of the consumer affairs in the central government, shall be the member secretary in the central council.

Term of CCPC:

The term of CCPC shall be of 3 years. The council shall continue to function for the period further of 3 months or till it is reconstituted, whichever is earlier.

Number of meetings:

Section 4(1) of the CPA, 2019, makes it obligatory that the council must hold at least one meeting in a year. This is a minimum requirement, but the council is entitled to hold as many meetings as it deems necessary.

Objective of the CCPC:

The objective of the central council is to render advice on promotion and protection of the consumers’ rights which have been listed in the clause 9 of Section 2, of CPA 2019. The role of the central council is primarily advisory with regards to promotion and protection of consumers’ rights and interests.

Procedure for the meeting of Central Council:

  1. The first essential requirement of a valid meeting is that it should be called by a proper authority; a meeting of the central council with the approval of the chairperson.
  2. Notice – a proper notice of the meeting must be given to all the members of the central council. The notice should be in writing and must be given at least 15 days prior to the date of the meeting. Every notice of the meting shall specify the place, and the day and the hours of the meeting, and shall contain the items of agenda for the meeting.
  3. Place of Meeting – the meeting of the council shall ordinarily be held in the NCT of Delhi. However, the council may also hold its meeting at any other place in India, wherever in the opinion and discretion of the chairperson.
  4. Presiding Office – the meeting of the central council shall be presided by the chairperson of the council. In the absence of the chairperson, the vice-chairperson shall preside over the meeting. In the absence of both of them, the central council shall elect a member to preside over the meeting of the council.
  5. Defect in the constitution of the council – the proceeding of the CCPC shall not be invalid merely by a reason of existence of any vacancy in or any defect in the constitution of the council.

Q14. What are controversies regarding insurance claim?

Ans. One major controversy regarding insurance claim is the status of beneficiary as a consumer.

Case: Canara Bank V. United India Insurance Co. Ltd. & Ors. (2020)

In this case, the farmers had kept their farm product (Byadgi chilly crops) in a cold storage facility (Sreedevi Cold Storage), financed by loans from Canara Bank. The cold storage, which was insured by United India Insurance, experienced a massive fire on January 13–14, 2014, destroying the produce.

The insurance company rejected the claims, arguing that the goods were not covered and that the farmers were not the insured parties. In response to the objection made by the farmers over the insurance company’s denial of claim, the State and the National Consumer Forum awarded redressal. The insurance company argued in its appeal that there was no privity of contract between the farmers and the insurance company. Because the cold storage company, not the farmers purchased the policy, they cannot be referred to as “consumers”.

The bench of Justice S. Abdul Nazeer and Justice Deepak Gupta made references to the definition of consumer under Section 2(d) (CPA, 1986) / 2(7) (CPA, 2019) of the act and noted that it was very broad and included not only the person who hires or avails the services for consideration, but also the beneficiary of those services is considered as a consumer.

In light of these facts, the bench decided that the beneficiaries who can profit from the insurance that the insured has purchased, are included in the concept of the consumer. According to CPA, a recipient of the services who is not the insured, is considered a consumer. The Supreme Court affirmed that farmers holding warehouse receipts are beneficiaries of the insurance service provided to the cold storage and have the right to claim insurance, making them "consumers" under the Consumer Protection Act. The insurance company was ordered to pay the claim amount, which would first be applied to satisfy the farmers' loan dues with Canara Bank.

Thus, beneficiary of insurance policy are consumer, even if they are not party to the contract.

PART – C

Q15. Discuss in detail the following unfair trade practices: (i) Misleading and False Advertising (ii) Falsification of Trade Mark (iii) Bargain price

Ans. The term ‘Unfair Trade Practices’ is defined under Section 2(47) of the CPA, 2019.

It refers to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentation, false advertising, tied/tie-in selling, deceptive pricing and non-compliance with manufacturing standards. Such acts are considered unlawful by statute through the consumer protection laws.

Unfair Trade Practices may be categorised under:

  1. False representation
  2. Bargain price
  3. Non-compliance of prescribed standard
  4. Falsification of trademark
  5. Unsafe and hazardous goods

Misleading and False Advertising (False Representation):

The practice of making any written statement or representation which –

  1. Falsely suggest that goods are of a particular standard, quality, quantity, grade, composition and model.
  2. Falsely suggest any rebuilt, second-hand, renovated, re-conditioned, or old goods as new.
  3. Represents that the goods or services have sponsorship, approval, or affiliation which such goods or services do not have.
  4. Makes a false or misleading representation concerning the need for or usefulness of any goods or services.
  5. Gives to the public any warranty or guarantee of the performance, efficiency, or length of time of a product that is not based on an adequate or proper test.

 Case: Horlicks Ltd. v. Zydus Wellness Products Ltd. (2020)

Plaintiff adopted the trademark “HORLICKS” in the year 1943 which was extensively marketed and sold whereas the defendant as a competitor of the plaintiff was mainly engaged in manufacturing and selling a nutritional drink under the trademark “Zydus wellness Products ltd”. Both Plaintiff and Defendant are engaged in selling and manufacturing the nutritional drinks named “HORLICKS” and “COMPLAN”. In the year 2019, the plaintiff noticed a TV commercial advertisement which is a comparison-based advertisement with their product “HORLICKS”. The TV commercial was being telecasted on various channels and in various languages such as English, Tamil, and Bengali. The conflicting factor of the advertisement is that it said that one cup of complan drink is equal to two cups of Horlicks drink. Therefore, Plaintiff filed a suit against the defendant for permanent injunction and sought to restrain from telecasting an impugned advertisement as the same amounted to, deliberate disparagement of the plaintiff’s health drink HORLICK through a television commercial (TVC).

After hearing the arguments of both parties, the Delhi High Court stated that the main issue lies in whether the disclaimer put in the print advertisement is visible and audible in the electronic medium. It was observed that on playing the TVC, there was neither any voiceover nor sufficient time to read the said disclaimer. A viewer can only see the comparison of one cup of COMPLAN with two cups of HORLICKS without any reference to the serving size. According to one of the previous precedents, the electronic medium is a very powerful medium of communication. It has a far greater impact than an advertisement in the print media and leaves an enduring mark on the mind of viewers. Hence, every new person who views the advertisement can easily get misled. The Delhi High Court further stated that there was no voiceover for the disclaimer, also, the visual advertisement was only for six seconds which is insufficient time for anyone to note the disclaimer. This shows that the defendant intentionally disparaged the plaintiff’s product and misled the consumer. Therefore, the court restrained the defendant from advertising the impugned television commercial in the present form.

Falsification of Trademark:

Falsely applying of a trademark is said: -

  1. When a person deceptively applies the falsified trademark to goods/services or any packet which contains goods.
  2. When a person uses that package which has a false trademark or deceptively similar trademark of the proprietor for the purpose of packaging or wrapping of goods other than the real goods of the trademark.

Case: Coca-Cola Company v. Bisleri International Pvt. Ltd. (2009)

In a significant intellectual property dispute, the Coca-Cola Company and Bisleri International Pvt. Ltd. & Ors. clashed in 2009 over the rightful ownership of the “Maaza” trademark, a popular mango-flavored beverage. Initially, Bisleri held exclusive rights to the brand, but in 1993, they entered into a Master Agreement with Coca-Cola, transferring the trademark, production rights, proprietary information, patent rights, and associated goodwill. However, despite this transfer, Bisleri continued to manufacture and distribute “Maaza” in Turkey. In 2008, Coca-Cola attempted to register the trademark in Turkey, prompting Bisleri to serve a legal notice terminating the agreement, citing Coca-Cola's alleged loss of rights to the brand. The central issue in this dispute was whether Bisleri’s use of the “Maaza” trademark outside of India constituted infringement and whether the assignment deed permitted Bisleri to continue using the trademark beyond Indian borders. Coca-Cola sought legal recourse, demanding a permanent injunction to prohibit Bisleri from further using the “Maaza” trademark. The Delhi High Court was tasked with resolving this dispute, determining whether Bisleri’s actions breached the assignment deed and whether Coca-Cola's rights to the “Maaza” trademark were being violated by Bisleri’s ongoing use of the brand outside of India.

In the seminal case of Coca-Cola Company v. Bisleri International Pvt. Ltd. & Ors. (2009), presided over by Justice Manmohan Singh of the Delhi High Court, a landmark judgment was delivered on October 15, 2009. The court ruled in favor of Coca-Cola Company, issuing a permanent injunction against Bisleri International Pvt. Ltd. & Ors. for their continued use of the “Maaza” trademark in Turkey, despite a transfer deed that had legally assigned all rights of the “Maaza” brand to Coca-Cola. The court held that Bisleri’s actions constituted a violation of Coca-Cola's trademark rights, as the transfer deed was comprehensive and covered all intellectual property rights, formulation rights, know-how, and goodwill associated with the “Maaza” brand. The court's decision underscored several critical issues, including jurisdiction, trademark infringement, permanent injunction, and export and infringement. Notably, the court affirmed its authority to hear the case, as the infringement had an impact on India, given the execution of the transfer deed in the country. The court also found that Bisleri’s ongoing use of the “Maaza” trademark in Turkey amounted to trademark infringement, as the transfer deed explicitly granted all rights to Coca-Cola. Furthermore, the court issued a permanent injunction, prohibiting Bisleri from using the “Maaza” trademark within India, to safeguard CocaCola's exclusive rights to the trademark and prevent further unauthorized use. The court's ruling also addressed the issue of export, deeming Bisleri’s export of products bearing the “Maaza” trademark to be trademark infringement. The court clarified that the transfer deed explicitly prohibited the use of the trademark for export purposes, and such actions were in breach of the agreement.

Bargain Price:

Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.

Case: M/s Aero Club v. Ravinder Singh Dhanju (2017)

The appellant, M/s Aero Club (Woodland Store), offered a 35% discount on MRP of articles at their outlet. The respondent purchased a T-shirt from their outlet. VAT was charged additionally at 5% on the discounted price. The complainant contended that since the MRP included taxes, charging VAT separately on the discounted price was improper. After his request for refund was denied, he filed a consumer complaint before the District Consumer Dispute Redressal Forum, Chandigarh. The forum allowed the complaint, ordered refund of the VAT amount, and awarded compensation and litigation expenses to the complainant. The appellant, M/s Aero Club, filed appeal against the forum’s order.

The court agreed with the forum’s decision that MRP is inclusive of all taxes, and therefore, charging VAT separately on the discounted price is impermissible and constitutes unfair trade practice. The court further examined the advertisement practices of the appellant, noting that offering a flat 35% discount while charging VAT separately misleads consumers and falls within the ambit of unfair trade practices.

The court dismissed the appeal, thereby upholding the order of the District Consumer Dispute Redressal Forum. The appellant must return the VAT charged on the discounted price and pay compensation and litigation expenses awarded by the forum.

Q16. Illustrate the Jurisdiction, constitution, function and powers of State Commission for consumer under Consumer Protection Act, 1986. [CPA, 2019 in present context]

Ans. After the District commission, state is the next in the hierarchy of the consumer redressal forum under CPA, 2019.

Composition of State Commission (Section 42):

  • It shall consist of a President and at least four other members, one of whom is to be a woman.
  • President is a person who is/has been a judge of the High Court. Members are persons of ability, integrity, and standing, and have adequate knowledge or experience or have shown adequate capacity in dealing with problems related to law, commerce, accountancy, industry, etc.
  • A member shall not have less than 10 years’ experience and have a bachelor’s degree from a recognised university and shall not be less than 35 years of age.

Term of office (Section 43):

Every member of the State Commission shall hold office for 4 years or up to the age of 65 years, whichever is earlier, and he shall be eligible for re-appointment.

(President: up to the age of 67 years).

Terms and Conditions of Service (Section 43):

  • The salary or other allowances payable to, and the other terms and conditions of the service of the members of the State Commission shall be such as may be prescribed by the State Government.
  • Vacancy – a vacancy in the office of president or a member may occur after the expiry of his tenure, or by his death, resignation or removal.

Jurisdiction (Section 47):

  1. Territorial Jurisdiction – A suit can be filed in State Commission, within whose local limits: -
  1. The party against whom the claim is made actually or voluntarily, resides or carries in business or personally works for gain.
  2. Where there are more than one opposite party and any such party actually or voluntarily, resides or carries on business or personally works for gain.
  3. The cause of action wholly or partially arises.
  1. Appellate Jurisdiction – State Commission has powers to adjudicate upon the appeals made upon the orders of District Commission. Any person aggrieved by any order made by District Commission, may prefer an appeal against such order within 45 days from the date of the order. However, the State Commission may entertain an appeal after the expiry of 45 days, if it is satisfied that there was sufficient cause for delay.
  2. Pecuniary Jurisdiction –

According to,

CPA, 2019: above 1 cr. - 10 cr.

CPA, 1986: 20 lakhs – 1cr.

Revised rules, 2021: 50 lakhs – 2cr.

Appointing Authority:

President of a State Commission is appointed by the State Government, after consultation with the Chief Justice of the High Court.

Powers of Consumer Forum (exercised by all commissions)

All commissions have the powers of a Civil Court under the Code of Civil Procedure (CPC), 1908, regarding:

  1. Summoning and enforcing the attendance of any defendant/witness and examining the witness on oath.
  2. Discovery and production of any document or material object as evidence.
  3. Receiving evidence on affidavit.
  4. Any other matter which may be prescribed.
  5. Obtaining information required for the purpose of the proceeding from any person.
  6. Enter and search any premises.

Functions Include: Entertaining original complaints, appeals from District Commissions, and exercising revisional jurisdiction over District Commissions within the state.

Q17. Explain deficiency in services with the help of decided case laws.

Ans. According to section 2(11), deficiency is any shortcoming, fault, imperfection, or defect in features, quality, amount, nature, authenticity, capacity, standard which is obligatory to be maintained and regulated as per laws and statutes in function or any agreement signed by the seller, including any act of negligence, omission by the seller, which causes loss to the consumer.

According to Section 2(42), the term service means service of any description which is made available to potential users and include, but not limited to, the provision of facilities in connection with: -

  1. Banking
  2. Financing
  3. Insurance
  4. Transport
  5. Processing
  6. Supply of electrical or other energy
  7. Telecom services
  8. House construction
  9. Entertainment

But does not include the rendering of any service free of charge or under a contract of personal service.

When we talk about service under CPA, we take it as a regular transaction. Thus, the service rendered under the contract of personal service are specifically excluded from the deficiency of service.

The term ‘contract of personal service’ is not defined under the act. In common, it means a contract to render service in private capacity to individuals.

Example:

  1. Where a landlord agrees to supply water to his tenant.
  2. Where a servant enters into a contract with a master for employment.

Contract ‘of’ personal service and Contract ‘for’ personal service:

In contract of personal service, the service seeker can order or require what is to be done and how it should be done.

Example: like a master can tell his servant to bring goods from a particular place.

But in a contract for personal service, the service seeker can tell only what is to be done. How the work will be done is at the wish of the service provider.

In CPA, contract ‘for’ personal service is considered.

Essential Elements of Deficiency

To prove a deficiency in service, the following must be established:

  1. Imperfection in Quality: The service provided falls below the standard prescribed by law or promised by the provider.
  2. Inadequate Performance: Failure to deliver the service in the manner agreed upon (e.g., delays, technical glitches, or incomplete work).
  3. Negligence/Omission: Acts of negligence or the deliberate withholding of relevant information that causes loss or injury to the consumer.

Examples of deficiency of services:

  1. Inappropriate treatment done by a doctor leading to an increase in patient’s suffering is the deficiency in service.
  2. A customer buys a ticket for an AC bus. But the AC of the bus does not work, which is a deficiency of service.

Relevant Case Laws:

1. Gurshinder Singh v. Shriram General Insurance Company Ltd. (2020) [Deficiency in Insurance Service]

In this case, the appellant had got his tractor insured with the respondent. Later, the tractor was stolen and an FIR was lodged on the same day. However, the claim was submitted to the respondent. It was rejected on the ground that intimation was given after a delay of 52 days. The appellant filed a consumer complaint before the District Consumer Forum. Furthermore, on appeal, the Supreme Court held that if there is a mere delay by a person in intimating the insurance company about the theft, this cannot be the ground to repudiate an insurance claim.

2. Bihar State Sugar Corporation Ltd. v. State Bank of India [Deficiency in Banking Service]

In this case, the cheque of the complainant corporation was wrongfully dishonoured despite having sufficient funds in its account. This resulted in complainants not being able to obtain insurance policy. His claim for accidental damages to his factory was rejected by the insurance company causing loss of more than Rs.25 lakhs to the complainant. It was held that there was deficiency in service of the part of bank and the commission awarded 5 lakh rupees by way of damages to the complainant.

3. N. Kunchi Babu v. A.P. Transco [Deficiency in Electricity Service]

In this case, electric wires were touching the balcony of complainant’s house. As a result of which, his minor daughter got electrocuted and became physically disabled. There was failure on the part of Electricity Supply Board to maintain minimum distance as per norms prescribed under the Electricity Act. Held, the deficiency in service was proved, hence complainant was entitled to compensation, cost, and also the medical expenses of his daughter.

4. Lucknow Development Authority v. M.K. Gupta (1994) [Deficiency in Service of House Construction]

In this Case, the complainant had deposited the prescribed amount to the opposite party (LDA) for taking possession of house and the opposite party issued possession later. Although the house was found incomplete, the house was occupied by someone else unauthorised. The complainant was awarded Rs. 3000 per month from the date of cheque of Rs. 22,85,070, to be able to take possession till the date of actual possession of house. The Supreme Court held that development authorities, when providing housing or allotment services, are "service providers" under the Consumer Protection Act.

The Act imposes strict liability on the manufacturer, distributors, suppliers and retailers for causing injurious harm by its defective products or services. Notwithstanding any contractual obligations and limitations of the liability, if a product or any of its components fails to comply with the necessary standards and therefore causing a defect in the product, shall make the manufacturer of the product directly liable for damages under the Act or the common law of negligence. Subsequently, the action can be brought for injury, death or any damages caused to a person or property under the Act due to a defect of the product. This means that there is no need for consumers to prove that the manufacturer was negligent for filing the suit against the manufacturer. The consumer only needs to prove that the defect in the product, the damage or injury was caused to the consumer by the product or service only.