Consumer court and consumer forum are both important institutions for protecting consumer rights, but there are some key differences between the two. Consumers should consider factors like timeframes, appeal mechanisms, legal representation, and costs before choosing the appropriate forum for their complaint.
Introduction
Consumer protection laws are intended to protect consumers from fraudulent, deceptive, and unfair business practices. Consumer court and consumer forum are two of the most important institutions in this regard, as they provide a platform for consumers to seek redressal of their grievances against businesses. However, there are some differences between consumer courts and consumer forums that consumers should be aware of.
In this blog post, we will discuss the key differences between consumer courts and consumer forums, including their jurisdiction, procedures, and remedies available to consumers.
Jurisdiction
The jurisdiction of consumer courts and consumer forums is one of the main differences between the two institutions. Consumer courts, also known as National Consumer Disputes Redressal Commissions (NCDRC), are established at the national level and hear cases that involve claims worth more than ₹ 1 crore. On the other hand, consumer forums, also known as State Consumer Disputes Redressal Commissions (SCDRC), are established at the state level and hear cases that involve claims between ₹ 20 lakhs and ₹ 1 crore
In addition to these two bodies, there are also District Consumer Disputes Redressal Forums (DCDRF) that hear cases that involve claims up to ₹ 20 lakhs. These forums are established at the district level and are the first point of contact for consumers who have a complaint against a business.
Procedures
Another key difference between consumer courts and consumer forums is the procedures that they follow. Consumer courts are governed by the Consumer Protection Act, of 2019, which lays down the procedures that must be followed by these bodies. The Act also provides for the appointment of a President and two members to each commission. These members must have legal qualifications and must be appointed by the central government.
Consumer forums, on the other hand, are governed by the Consumer Protection Act, of 1986. The procedures followed by these forums are relatively simple, and consumers can file their complaints in person or through an advocate. The forums are headed by a President who is a retired District Judge, and two members who are appointed by the state government.
Remedies Available to Consumers
Finally, the remedies available to consumers are also different between consumer courts and consumer forums. In consumer courts, consumers can seek a range of remedies, including compensation, refund of money, and punitive damages. These remedies are awarded based on the severity of the offense committed by the business.
In consumer forums, however, the remedies available are relatively limited. Consumers can seek compensation up to ₹ 20 lakhs, but punitive damages are not awarded. Additionally, the forums can order the business to replace or repair the product, or to refund the money paid by the consumer.
Timeframe for Disposal of Cases
One of the main concerns for consumers is the time taken to dispose of their complaints. Consumer courts are known for their efficiency and timely disposal of cases. They are mandated to dispose of cases within 90 days from the date of filing. In case of any delay, the court must record the reasons for the same. This ensures that consumers do not have to wait for years to get justice.
On the other hand, consumer forums do not have a fixed time limit for disposing of cases. The time taken to dispose of a case depends on the workload of the forum and the complexity of the case. Consumer Complaint may have to wait for several months, and sometimes even years, to get a final decision.
Appeal Mechanism
Another important factor that consumers should consider is the availability of an appeal mechanism. In case a consumer is not satisfied with the decision of the consumer court or forum, they have the option to appeal to a higher court. In the case of consumer courts, consumers can appeal to the Supreme Court of India. However, in the case of consumer forums, consumers can only appeal to the state high court.
This means that if a consumer is not satisfied with the decision of a consumer forum, they may have to approach the high court of their state, which can be a time-consuming and expensive process.
Legal Representation
In consumer courts, consumers are required to be represented by an advocate. This is because the procedures followed by these courts are complex and require legal expertise. On the other hand, consumers can represent themselves in consumer forums. This makes the process of filing a complaint simpler and more accessible to consumers who may not have the resources to engage an advocate.
However, it is important to note that while consumers can represent themselves in consumer forums, it is still advisable to engage an advocate. This is because consumer forums follow the principles of natural justice, and the procedure can be complex.
Cost of Filing a Complaint
The cost of filing a complaint is another important factor that consumers should consider. Consumer courts charge a higher fee for filing a complaint as compared to consumer forums. This is because consumer courts hear cases that involve claims worth more than ₹ 1 crore and require more resources.
On the other hand, consumer forums have a lower fee for filing a complaint. This makes it more accessible to consumers who may not have the resources to engage an advocate or pay a high fee for filing a complaint.
FAQ:
Is the consumer forum a court?
Yes, the consumer forum is a quasi-judicial body, which means that it has some of the powers and functions of a court of law. However, there are some key differences between consumer forums and regular courts.
What is the difference between court and consumer court?
Regular courts Have general jurisdiction over all types of cases, civil and criminal. Are more formal and complex in their procedures. Require the parties to be represented by lawyers. Have a higher burden of proof. Consumer courts Have limited jurisdiction over consumer disputes only. Are more informal and less complex in their procedures. Allow consumers to represent themselves. Have a lower burden of proof.
What is the role of the consumer forum court?
The consumer forum court is responsible for redressing the grievances of consumers who have been wronged by businesses. It can award compensation to consumers and take other steps to protect their rights.
What happens if I complain in a consumer forum?
If you complain in a consumer forum, the forum will first admit your complaint and issue a notice to the business. The business will then have an opportunity to respond to the complaint. If the parties cannot reach a settlement, the forum will hold a hearing and decide the case. The forum's decision is binding on both parties.
How strong is the consumer court?
Consumer courts are relatively new institutions in India, but they have played an important role in protecting the rights of consumers. The Consumer Protection Act, 1986 gives consumer courts a number of powers, including the power to award compensation, order businesses to rectify defects in goods and services, and even issue injunctions.
Conclusion
Consumer courts and consumer forums are both important institutions for protecting the interests of consumers. While there are some differences between the two, consumers should consider all factors before choosing the appropriate forum for their complaints. The time taken to dispose of cases, the availability of an appeal mechanism, legal representation, and the cost of filing a complaint are some of the key factors that consumers should consider. Ultimately, the objective of both consumer courts and consumer forums is to ensure that consumers receive justice in a timely and efficient manner.
Vakilsearch can assist individuals in filing their complaints, representing them in consumer courts, and ensuring that their grievances are heard in a timely and efficient manner. They have a team of experienced legal professionals who specialize in consumer law and can provide the necessary guidance and representation to ensure that consumers receive justice.
In addition to consumer court representation, Vakilsearch also provides other legal services, such as company registration, trademark registration, and legal compliance. Their services are available online, which makes them accessible to consumers across the country.
Overall, Vakilsearch’s role in consumer court representation can be invaluable for individuals who are seeking justice for their grievances. They can provide the necessary legal expertise and representation to ensure that consumers receive a fair and timely resolution to their complaints.
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