CONSUMER PROTECTION ACT1986 INTRODUCTION: The The Cons Consum umer er Prot Protec ecti tion on Ac Act, t, 19 1986 86 aims aims to prov provid ide e for for bett better er prot protec ecti tion on of the the inte intere rest sts s of cons consum umer ers s and and for for the the sett settle leme ment nt of consumer’s disputes and for matters connected therewith. The act extends to the whole of India except the State of Jammu and Kashmir. The act applies a pplies to all goods and services except those notified by the central Government. Who Is A Consumer? Sec.2 (1) (d)
As per the definition definition given under the Act, a ‘consumer’ means means – (a)Any person who: i) Buys any goods, or ii) Hires or avails of any services, On payment, either in full or in installments or under hire purchase system; and Any person who uses goods or is benefited from services, without making any payment
Wha Are Goods? Sec.2 (1) (i) ‘Goods’ have been defined to mean the same as per the definition unde underr ‘Sal ‘Sale e Of Good Goods s Ac Act. t. ‘Goo ‘Goods’ ds’ unde underr that that act act means means ever every y kind kind of movable property except money and actionable claims, and includes stock and shares, growing crops and things attached to or under the contract of sale. What Are Services? Sec.2 (1) (o) ‘Service’ means service of any description made available to potential users users and includ includes es bankin banking, g, financ financing ing,, ins insura urance nce,, transp transport ort,, proces processin sing, g, supp su pply ly of elec electr triical cal and and othe ther ener energy gy,, boar boardi ding ng,, lodgi odging ng or both both,, entertainment, amusement and purveying of news and other information.
OBJECTS OF THE ACT
Providing better protection of interest of consumers
Providing for the establishment of consumer council and a nd other authorities
Settling consumer disputes and matters connected therewith
RIGHTS OF CONSUMERS
Right to Safety
Right to be Informed
Right to Choose
Right to be Heard
Right to Seek Redressal
Right to Consumer Education
Consumer Redressal agencies: A. District forum: sec. (10 to 15) I. Comp Compos osit itio ion n (sec. (sec.10 10))
President –District Court Judge
2 members(one of them is female)
Having above 35 years age
10 years experience in the fields of economics, law, commerce, accountancy, industry, Public affairs/ administration.
II. Jurisd Jurisdict iction ion(se (sec.1 c.11) 1)
500000 not more than
III. Manner in which complaint complaint should be made(sec.12 IV. Procedure and receipt receipt of complaint (sec.13) V. Finding Finding of the the district district forum forum (sec.1 (sec.14) 4) VI. Appeal (sec.1 (sec.15) 5)
30 days
B.State Commission: sec. (16to19) I.
II.
Composition ((s sec.16)
President-judge of high court
2 members
Jurisdiction (S (Sec.17)
5lakhs to less than 20,00,000
III.
Procedure (s (sec.18)
IV.
Appeal (Sec.19)
30 days
C.National Commission: Sec. (20-23) I.
II.
Composition(sec.20)
President –supreme court judge
4 members(one of them is female)
Jurisdiction(Sec.21)
More than 20,00,000
III.
Procedure(Sec.22)
IV.
Appeal(Sec.23)
WINDING UP OF COMPANY INTRODUCTION: Winding up or liquidation of a company represents the last stage in its life. It means a proceeding by which a company is dissolved. Thus, the winding up is the process of putting an end to the life of the company. And during this process, the assets of the company are disposed of, the debts of the company are paid off out of the realized assets or from the contributories and if any surplus is left, it is distributed among the members in proportion to their shareholding in the
company. The winding up of the company is also called the ‘liquidation’ of the company. According to Prof.Gower “winding up of a company is a process whereby its life life is ended ended and its proper property ty admini administ stere ered d for the benefi benefitt of its credi creditor tors s and and members. An administer called liquidator, is appointed and he takes control of the compa company, ny, colle collects cts its asset assets, s, pays pays its debts debts and finall finally y dis distri tribut butes es any surpl surplus us among the members in accordance with their rights.”
MODES OF WINDING UP I.
II. II.
III. III.
Winding up by the court (secs.433to483) (secs.433to483) Volu Volunt ntar ary y wind windin ing g up (sec (secs. s.48 484t 4to5 o521 21))
Members voluntary winding up
Creditors voluntary winding up
Wind Windin ing gu up ps sub ubje ject ct to su supe perv rvis isio ion n of of cou court rt
.
Winding up by the court A company may be wound up by the court in in the following cases: 1. Special resolution of the company[sec.433(a)]
2. Default in delivering the statutory statutory report to the registrar or in holding statutory meeting[sec.433(d)] meeting[sec.433(d)] 3. Failure Failure to commence commence or suspens suspension ion of business business [sec.433 [sec.433]] 4. Reduction Reduction in in member membership[ ship[sec.4 sec.433( 33(d)] d)] 5. Inability Inability to pay its its debts[sec debts[sec.433 .433(e)] (e)] 6. Just and equitable equitable [sec.433 [sec.433(f)] (f)]
Petition (sec.439) 1. Petition by the company [sec439 (1) (a)] 2. Petition by any creditor or creditors [sec.439 (1) (b)] 3. Petition by any contributory or contributories [sec.439 (1) (c)]
4. Petition Petition by all or any any of the prior prior parties parties whether whether together together or separately [sec.439 (i) (d)] 5. Petition Petition by registrar registrar [sec.4 [sec.439 39 (1) (1) (e)] (e)] 6. Petition Petition by the centra centrall government government sce.43 sce.439 9 (1) (f)] (f)]
Member’s voluntary winding up Provisions applicable to a members voluntary winding up: 1. Appointme Appointment nt and remuneratio remuneration n of liquidator liquidator (Sec.490) (Sec.490) 2. Boards Boards powers to cease on appointme appointment nt of a liquidator liquidator(Sec (Sec.491 .491)) 3. Power Power to fill vacancy vacancy in office office of liquidato liquidator(Se r(Sec.492 c.492)) 4. Notice Notice of appointment appointment of liquidator liquidator to be given to registra registrar(sec r(sec.493 .493)) 5. Power Power of liquidator liquidator to accept accept shares shares as the consider consideration ation for sale sale of property(Sec.495) 6. Duty of liquidat liquidator or to call credito creditors rs meeting meeting in case of insolv insolvency ency (Sec.495) 7. Duty to call call general general meeting meeting at the end of each each year(Sec. year(Sec.496 496)) 8. Final meeting meeting and dissolution dissolution (Sec.497 (Sec.497))
Essentials of valid contract Introduction: A contract is an agreement made between two or more parties which the law will enforce sec2(h) defines a contract as an agreement enforceable by law. law. Accord According ing to salmond salmond”a ”a contra contract ct is an agreem agreement ent creat creating ing and defining obligations between the parties.” Agreement =offer+ acceptance Types of
Contract =agreement + enforceable by law
Classification Classification according to
formation
performance
1.void agreement 1.executed contract
1.express contract
2.void contract 2.executory contract
2.implied contract
3.illegal agreement 3.Unilateralcontract
3.Quasi contract
4.Unenforceable contract 4.bilateral contract 1. Offer Offer and accept acceptanc ance e 2. Intention Intention to to create create legal legal relati relationshi onship p 3. Law ful consid considera eratio tion n 4. Capacity Capacity of parties-co parties-compete mpetency. ncy. 5. Free Free and and genui genuine ne conse consent nt 6. Lawf Lawful ul obj objec ectt 7. Agreem Agreement ent not not declar declared ed void void 8. Certainit Certainity y and possib possibilit ility y perform performance ance 9. Legal Legal formal formaliti ities. es.
KINDS OF QUASI CONTRACTS 1. Supply Supply of Necess Necessari aries es (Sec.68 (Sec.68)) 2. Payment Payment by the the interes interested ted persons persons (Sec.6 (Sec.69) 9) 3. Obligation Obligation to to pay for non non gratuitous gratuitous acts acts (Sec.70) (Sec.70) 4. Responsibi Responsibility lity of of finder finder of goods goods (Sec.71) (Sec.71) 5. Mistak Mistake e or coerc coercion ion (Sec. (Sec.72 72))
DUTIES AND RIGHTS OF AGENT AND PRINCIPAL
“An agent is a person employed to do any act for another or to represent another in dealings with third persons[sec.184]. persons[sec.184]. the person for whom such act is done or who is so represented is called the principal.”
Right of agent: 1. Righ Rightt of ret retai aine nerr 2. Right of receive receive remunerat remuneration ion 3. Righ Rightt of of lie lien n 4. Right Right of indemn indemnifi ificat cation ion 5. Right Right of of comp compens ensati ation on 6. Right Right of stoppag stoppage e in tran transit sit
Duties of agent: 1. To carry out out work undertake undertaken n according according to the directi directions ons given given by the principal. 2. To carry out out the work work with reasonable reasonable care care skill skill and diligence diligence.. 3. To render render proper proper accoun accounts ts to his his principal principal 4. To communicat communicate e with the princi principal pal in case of difficul difficulty ty 5. Not to to deal deal on his his own own accoun account. t. 6. To pay sums recei received ved for for the principal principal 7. To protect protect and preserve preserve the the interests interests of the princip principal al in case of his death or insolvency. 8. Not to made secret secret profit profit from from agency agency.. 9. Not to put himself himself in a position position where where interest interest and and duty conflict conflict.. 10.
Not to set up an adverse title.
Rights of Principal: 1. To rec recov over er dam damage ages s
2. To obtain an account of secret profits and recover them and resist
claim for remuneration 3. To resist agents agents claim for indemni indemnity ty against liabili liability ty incurred. incurred.
Duties of principal: 1. To indemnify the agent against the consequences of all lawful acts. 2. To indemnify the agent against the consequences of acts done in good
faith. 3. To indemnify agent for injury caused by principal’s neglect.
4. To pay the agent agent the commissi commission on or other remune remuneratio ration n agreed. agreed.
