Skip to content
Question 17 of 20

Q.Explain the redressal mechanism available to consumer under Consumer Protection Act, 1986.

Yanam BieapBIEAP AP Intermediate (2nd Year) Commerce Board 2023Subjective· 10mImportance★★★★★est
85% · 17/20 Questions
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

To give consumers simple, speedy and inexpensive justice, the Consumer Protection Act, 1986 created a three-tier redressal system — the District Forum, the State Commission and the National Commission — each with its own money-value jurisdiction and with the right to appeal from the lower level to the higher one, and finally to the Supreme Court.

Need for the mechanism

Ordinary civil courts are slow and costly, so the Act set up special quasi-judicial agencies at three levels to decide consumer complaints quickly and at low cost. A consumer, a registered consumers' association, the Central or State Government, or several consumers with a common interest may file a complaint.

The three-tier redressal machinery (1986 Act)

1. District Forum (district level)

  • Set up by the State Government in each district; headed by a person qualified to be a District Judge plus two members (one a woman).
  • Entertains complaints where the value of goods/services and compensation claimed is up to the prescribed limit (originally up to Rs. 20 lakh).
  • After giving both sides a hearing it can order removal of defects, replacement, refund of price, or payment of compensation.
  • An aggrieved party may appeal to the State Commission within the prescribed time.

2. State Commission (state level)

  • Set up by the State Government; headed by a person who is or has been a High Court Judge, with members.
  • Hears complaints above the District Forum limit and up to the higher prescribed limit (originally above Rs. 20 lakh and up to Rs. 1 crore), and also hears appeals against orders of District Forums in the state.
  • Its orders can be appealed against before the National Commission.

3. National Commission (national level)

  • Set up by the Central Government; headed by a person who is or has been a Judge of the Supreme Court.
  • Hears complaints above the State Commission limit (originally above Rs. 1 crore) and appeals against the orders of State Commissions.
  • An appeal against its order lies to the Supreme Court of India.

Reliefs available

…

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.