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Notification of certain sections of the Consumer Protection Act, 2019
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The Ministry of Consumer Affairs, Food and Public Distribution, issued a notification (“Notification”) on 15th July 2020, stating that the following sections of the Consumer Protection Act (“Act”) would come into effect from 20th July 2020.
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| Chapter | Sections
| | I | Section 2 [Except clauses (4), (13), (14), 16), (40)] | | II | Section 3 to 9 (both inclusive) | | IV | Section 28 to 73 (both inclusive); [Except sub-clause (iv) of clause (a) of sub-Section (1) of section 58] | | V | Section 74 to 81 (both inclusive); | | VI | Section 82 to 87 (both inclusive); | | VII | Section 90 and 91; [Except sections 88,89,92 & 93] | | VIII | - Section 95, 98, 100, - Section 101 [Except clauses (f) to (m) and clauses (zg), (zh), and (zi) of sub-section 2] - Sections 102, 103, 105, 106, 107
[Except sections 94,96,97,99,104] |
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The Notification has brought into effect the majority of the sections of the Act. Section 107 of the Act has also come into force, thereby repealing the Consumer Protection Act, 1986 (“Repealed Act”). However, as per Section 107 (2) and (3), it is clear that any action taken under the Repealed Act shall be deemed to have been taken under the corresponding sections of the Act.
Section 41 of the Act mandates that any person filing an appeal before the State Commission can do so within a period of 45 days from the date of the order as suppose to 30 days under the Repealed Act. Further, the State Commission shall not entertain such appeal unless the Appellant has deposited 50% of the amount under the dispute.
The pecuniary jurisdiction of District Commission, State Commission and National Commission has been raised as follows:-
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| Fora | Act | Repealed Act | | District Commission | Rs 1 Crore | Rs 20 Lakhs | | State Commission | Rs 1 Crore to Rs 10 Crores | Rs 25 Lakhs to Rs 1 Crore | | National Commission | Exceeds Rs 10 Crores | Exceeds Rs 1 Crore |
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Vide the Section 69 (1) of the Act, the District Commission, State Commission or the National Commission shall not admit the complaint unless it is filed within 2 years from the date on which the cause of action has arisen. However, as per section 69 (2) of the Act, if a complaint is filed after such period, it may be allowed at the discretion of the Court, if sufficient cause is shown. Further, Chapter V of the Act has put into effect a statutory Mediation mechanism.
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This news flash has been written for the general interest of our clients and professional colleagues and is subject to change. This news flash is not to be construed as any form of solicitation. It is not intended to be exhaustive or a substitute for legal advice. We cannot assume legal liability for any errors or omissions. Specific advice must be sought before taking any action pursuant to this news flash.
For further clarification and details on the above, you may write to Ms. Komal Joshi (Partner) at kjoshi@almtlegal.com, Ms. Siddhi Doshi (Senior Associate) at sdoshi@almtlegal.com or Ms. Aditi Bajaj (Associate) at abajaj@almtlegal.com.
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