Consumer Protection Act1986: Who Is A Consumer? Sec.2 (1) (D)

CONSUMER PROTECTION ACT1986
INTRODUCTION:
The Consumer Protection Act, 1986 aims to provide for better
protection of the interests of consumers and for the settlement 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
to all goods and services except those notified by the central Government.
Who Is A Consumer? Sec.2 (1) (d)
As per the definition given under the Act, a ‘consumer’ 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
under ‘Sale Of Goods Act. ‘Goods’ under that act means every 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 and includes banking, financing, insurance, transport, processing,
supply of electrical and other energy, boarding, lodging or 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 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. Composition (sec.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. Jurisdiction(sec.11)
 500000 not more than
III. Manner in which complaint should be made(sec.12
IV. Procedure and receipt of complaint (sec.13)
V. Finding of the district forum (sec.14)
VI. Appeal (sec.15)
 30 days
B.State Commission: sec. (16to19)
I. Composition (sec.16)
 President-judge of high court
 2 members
II. Jurisdiction (Sec.17)
 5lakhs to less than 20,00,000
III. Procedure (sec.18)
IV. Appeal (Sec.19)
 30 days
C.National Commission: Sec. (20-23)
I. Composition(sec.20)
 President –supreme court judge
 4 members(one of them is female)
II. 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 is ended and its property administered for the benefit of its creditors and
members. An administer called liquidator, is appointed and he takes control of the
company, collects its assets, pays its debts and finally distributes any surplus
among the members in accordance with their rights.”
MODES OF WINDING UP
I. Winding up by the court (secs.433to483)
II. Voluntary winding up (secs.484to521)
 Members voluntary winding up
 Creditors voluntary winding up
III. Winding up subject to supervision of court
Winding up by the court

A company may be wound up by the court in the following cases:
1. Special resolution of the company[sec.433(a)]
2. Default in delivering the statutory report to the registrar or in holding

statutory meeting[sec.433(d)]
3. Failure to commence or suspension of business [sec.433]
4. Reduction in membership[sec.433(d)]
5. Inability to pay its debts[sec.433(e)]
6. Just and equitable [sec.433(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 by all or any of the prior parties whether together or
separately [sec.439 (i) (d)]
5. Petition by registrar [sec.439 (1) (e)]
6. Petition by the central government sce.439 (1) (f)]
Member’s voluntary winding up

Provisions applicable to a members voluntary winding up:
1. Appointment and remuneration of liquidator (Sec.490)
2. Boards powers to cease on appointment of a liquidator(Sec.491)
3. Power to fill vacancy in office of liquidator(Sec.492)
4. Notice of appointment of liquidator to be given to registrar(sec.493)
5. Power of liquidator to accept shares as the consideration for sale of

property(Sec.495)
6. Duty of liquidator to call creditors meeting in case of insolvency

(Sec.495)
7. Duty to call general meeting at the end of each year(Sec.496)
8. Final meeting and dissolution (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. According to salmond”a contract is an agreement creating and
defining obligations between the parties.”
Agreement =offer+ acceptance

Types of
Contract =agreement + enforceable by law
contracts
Classification according to formation performance

1.void agreement 1.express contract
1.executed contract
2.void contract 2.implied contract

2.executory contract
3.illegal agreement 3.Quasi contract

3.Unilateralcontract
4.Unenforceable contract
4.bilateral contract
1. Offer and acceptance
2. Intention to create legal relationship
3. Law ful consideration
4. Capacity of parties-competency.
5. Free and genuine consent
6. Lawful object
7. Agreement not declared void
8. Certainity and possibility performance
9. Legal formalities.
KINDS OF QUASI CONTRACTS
1. Supply of Necessaries (Sec.68)
2. Payment by the interested persons (Sec.69)
3. Obligation to pay for non gratuitous acts (Sec.70)
4. Responsibility of finder of goods (Sec.71)
5. Mistake or coercion (Sec.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]. the person for whom such
act is done or who is so represented is called the principal.”
Right of agent:
1. Right of retainer
2. Right of receive remuneration
3. Right of lien
4. Right of indemnification
5. Right of compensation
6. Right of stoppage in transit
Duties of agent:
1. To carry out work undertaken according to the directions given by the

principal.
2. To carry out the work with reasonable care skill and diligence.
3. To render proper accounts to his principal
4. To communicate with the principal in case of difficulty
5. Not to deal on his own account.
6. To pay sums received for the principal
7. To protect and preserve the interests of the principal in case of his

death or insolvency.
8. Not to made secret profit from agency.
9. Not to put himself in a position where interest and duty conflict.
10. Not to set up an adverse title.
Rights of Principal:
1. To recover damages
2. To obtain an account of secret profits and recover them and resist
claim for remuneration
3. To resist agents claim for indemnity against liability 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 the commission or other remuneration agreed.

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Consumer Protection Act1986: Who Is A Consumer? Sec.2 (1) (D)

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CONSUMER PROTECTION ACT1986

(a) Any person who:

Wha Are Goods? Sec.2 (1) (i)

What Are Services? Sec.2 (1) (o)

‘Service’ means service of any description made available to potential

OBJECTS OF THE ACT

 Providing better protection of interest of consumers

 Providing for the establishment of consumer council and other

 Right to Seek Redressal

 Right to Consumer Education

Consumer Redressal agencies:

 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,

 500000 not more than

III. Manner in which complaint should be made(sec.12

IV. Procedure and receipt of complaint (sec.13)

V. Finding of the district forum (sec.14)

VI. Appeal (sec.15)

 President-judge of high court

II. Jurisdiction (Sec.17)

 5lakhs to less than 20,00,000

III. Procedure (sec.18)

IV. Appeal (Sec.19)

C.National Commission: Sec. (20-23)

 President –supreme court judge

 4 members(one of them is female)

 More than 20,00,000

Winding up or liquidation of a company represents the last stage in its

According to Prof.Gower “winding up of a company is a process whereby its

I. Winding up by the court (secs.433to483)

II. Voluntary winding up (secs.484to521)

 Members voluntary winding up

 Creditors voluntary winding up

III. Winding up subject to supervision of court

Winding up by the court

1. Special resolution of the company[sec.433(a)]

2. Default in delivering the statutory report to the registrar or in holding

3. Failure to commence or suspension of business [sec.433]

5. Inability to pay its debts[sec.433(e)]

6. Just and equitable [sec.433(f)]

2. Petition by any creditor or creditors [sec.439 (1) (b)]

3. Petition by any contributory or contributories [sec.439 (1) (c)]

5. Petition by registrar [sec.439 (1) (e)]

6. Petition by the central government sce.439 (1) (f)]

Member’s voluntary winding up

1. Appointment and remuneration of liquidator (Sec.490)

2. Boards powers to cease on appointment of a liquidator(Sec.491)

3. Power to fill vacancy in office of liquidator(Sec.492)

4. Notice of appointment of liquidator to be given to registrar(sec.493)

5. Power of liquidator to accept shares as the consideration for sale of

6. Duty of liquidator to call creditors meeting in case of insolvency

7. Duty to call general meeting at the end of each year(Sec.496)

8. Final meeting and dissolution (Sec.497)

Essentials of valid contract

A contract is an agreement made between two or more parties which

Agreement =offer+ acceptance

Classification according to formation performance