Consignment at Owners' Risk - Legal Position

The term "at owner's risk" appears in every goods receipt or consignment note issued by the transporters to whom the goods are entrusted by traders, manufacturers or businessmen for delivery to their dealers or customers. 

Does this term completely exonerate the transport company from its liability if the goods so consigned are not delivered, late delivered or delivered in a damaged condition? 

Transporters say so and invariably advance this plea if any action is taken against them. Courts too have struggled hard to reconcile the situation and even the Supreme Court had to go into this baffling question on several occasions.

1. Rungta Brothers case : 

National Consumer Disputes Redressal Commission ordered at 2003 CTJ 480 (CP) in the matter of Vijay Goods Transport Company v. Rungta Brothers, and held the transporter liable to make good the loss.

2. In the case of Nath Brothers v. Best Roadways Limited, 2000 CTJ 335(SC)(CP), the Supreme Court held the liability of a carrier to whom the goods are entrusted for carriage is that of an insurer and is absolute in terms which means the carrier has to deliver the goods safely, undamaged and without loss at the destination. The court also observed that "the expression, 'owner risk', does not exempt a carrier from his own negligence or the negligence of his servants or agents."

3. Patel Roadways v. Birla Yamaha Ltd. 2000 CTJ 241 (SC) (CP)

4. Transport Corporation of India v. Oriental Insurance Co. Ltd judgment dated October 13, 2011

5. In Associated Road Carriers Ltd. v. Tridoss Laboratories Ltd. (F.A. No. 125 of 1999) the NC on November 2, 2011 observed "the carrier cannot disown the liability by saying he did not cause the loss". 

From the above legal position, it is manifest that while certainly the consignors would be advised to insure the precious goods transported through the transporters, the mere fact that the goods receipt mentions that the goods were dispatched at "owner's risk" should not by itself deter the consignors in claiming compensation from the transporters.

Source: https://www.indiatoday.in/business/india/story/goods-carriers-cant-disown-their-liability-92084-2012-02-06

New Consumer Protection Bill 2019

For the first time in 32 years, the Ministry of Consumer Affairs and Food Distribution introduces a bill in Lok Sabha to replace the Consumer Protection Act, 1986.

Now Online retailers, celebrities can't fool the Consumers.
Source: #BrandEquity

A three-decade-old law is being changed to give more powers to the consumer. The Lok Sabha has passed the Consumer Protection Bill 2018 which will now go to the Rajya Sabha. The new law will replace the archaic Consumer Protection Act 1986.

The new law will revolutionise consumer rights in India by investing consumers and agencies with a lot more power than they currently have.

Below are the highlights from the Bill:

1. The Bill proposes an executive agency, the Central Consumer Protection Authority. The agency can intervene whenever it feels necessary to protect consumers from unfair trade practices. It can also launch class action against a company, besides ordering recall or refund of products. The agency is designed on the lines of highly effective US Federal Trade Commission. 

2. The Bill introduces a new concept of class action, which means the liability of manufacturers and service providers will not be limited to one or a group of consumers but towards all consumers. All affected consumers become beneficiaries in a class action suit. 

3. The manufacturer, producer and even the seller will be liable for any personal injury, death or damage resulting from defects in manufacture, construction, design, formula, preparation, assembly, testing, service, warning, instruction, marketing, packaging, or labelling of any product. 

4. The Bill proposes to remove the current structures for adjudicating consumer disputes at the district, state and national levels. It will only make them more powerful.

5. Consumer mediation cells will be attached to consumer commissions at all levels for resolution of disputes so that the commissions do not get bogged down in too many cases.

6. The Bill takes into account e-commerce too. Currently, a consumer can initiate legal action against a seller only at the place where transaction has taken place. In the new law, a consumers can file a complaint electronically or in the consumer court at his place of residence. This new law will simplify consumer disputes adjudication process for faster disposal of grievances through filing of complaints by a consumer from his place of residence, e-filing and video conferencing for hearing. 

The Bill introduces an additional consent layer requiring online marketplaces to add a tab on their platforms seeking express consent from customers at the time of checkout to be able to access and use their information.
E-commerce firms would have to disclose their business details and seller agreements, apart from also disclosing how they use consumer data. The Bill deems e-commerce platforms as service providers instead of only intermediaries, thus increasing their liability. 

7. The Bill also holds endorsers of products liable in addition to manufacturers. “Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of the consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend up to 10 lakh rupees,” the Bill says. Offences may lead to a jail term of 10 years and a fine of up to Rs 50 lakh. For celebrities involved in misleading advertisements, there will be penalties but no jail term. 

8. The Bill also addresses ‘composite supply’ or bundling of services, wherein platforms that offer travel services and bundle services such as hotel stays and airline tickets will also have to take liability for all the services. 

9. To discourage frivolous complaints, the Bill proposes a penalty from Rs 10,000 to Rs 50,000. 

Also see:
1. https://indiacorplaw.in/2018/12/consumer-protection-bill-2018-paradigm-shift.html?utm_source=dlvr.it&utm_medium=twitter

2. Changes In Consumer Protection Bill 2018 That You Should Know https://www.goodreturns.in/classroom/2018/12/changes-consumer-protection-bill-2018-that-you-should-know-805846.html?utm_source=article

3. https://www.inreportcard.in/news-list-detail.aspx?opedid=1547

Burberry faces U.S. lawsuit accusing it of deceptive price tags

British luxury fashion brand Burberry is to face a class action lawsuit in the United States, claiming it used misleading price tags at its outlets stores to fool shoppers into believing they were getting big bargains.

The company, which specifically manufactures some of the products for its outlet stores, is accused of intentionally presenting false price information on products that have never been sold in its retail stores to mislead customers.

Outlet stores typically sell excess or old stock at a discount, although some retailers also manufacture goods specifically for them.

The lawsuit in the latest in a long line of cases accusing luxury retailers of marking up goods sold in outlet stores with made-up manufacturer prices.

Last year, U.S. retailer Michael Kors had agreed to pay $4.88 million and change its sales practices to settle a similar class action lawsuit after it was accused of creating an "illusion" of deep discounts.

(Reporting by Li-mei Hoang)

Source - http://mobile.reuters.com/article/idUSKCN0VL0NT

Karwar Express and Kannur Express - Confusion creating Railways Penalised

The same locomotive pulls 16523 Karwar and 16517 Kannur till Mangalore


Same engine pulls trains to both Karwar and Kannur; confused passenger missed train and sued Railways in consumer court


A train with two destination names confused a passenger and he failed to board it. He was to board the Karwar Express (night train) but the first half of the train's coaches had boards identifying it as the Kannur Express. It was only when the train was moving that he noticed that the last few coaches were marked as Karwar Express. After missing the train, he filed a complaint with the consumer forum in Bangalore which has held the Railways responsible for deficiency in service and confusing passengers and fined it. This has come as yet another instance of the confusion created by the Railways to use the same locomotive to pull the trains to Kannur and Karwar till Mangalore, from where they are separated to head to their respective destinations.


Anup Nair, a resident of Thippasandra, filed the complaint last year on October 28. He had purchased a ticket to travel from Bangalore to Byndoor Mookambika Road (the railway station used by those heading to the Mookambika temple) on August 31, 2013, to perform a ritual called the 'Vidyarambh' at the Mookambika temple. He claimed to have reached the City Railway Station one hour in advance before the train was to depart at 8.40 pm. At the enquiry counter, he was told that the train would depart from platform number 10. Anup says he checked the display chart on the platform and that too showed train No. 16523 Karwar Express, along with train No. 16517 Kannur Express.


A train arrived at 8.20 pm on platform 10, and the digital signboard indicated it as 16517 Kannur Express. Even the coaches on the train had boards that read Kannur Express. Anup verified his ticket to confirm that it said Karwar Express. The complainant said he checked the TVs installed on the platform and found they were either showing only advertisements, or were not working. The train on the platform began to move and as it left the station, Anup noticed to his dismay that some of the coaches at the end had boards which said Karwar Express.


Anup could not board the moving train. Later he came to know that both the Kannur Express and Karwar Express were pulled by the same engine. When he confronted the officials, he was refunded Rs 465 out of the ticket fare of Rs 945.


In the consumer court, the Divisional Manager of South Western Railways claimed that Karwar Express left Bangalore City Railway Station at the scheduled time of 8.40 pm and there was no delay. Since the display showed Karwar Express too, the consumer was not misled. He claimed that "train No 16523 Karwar Express and 16517 Kannur Express leave as a single formation from Bangalore to Mangalore, where they are bifurcated. The coach position is disseminated through a public announcement system and electronic display boards. Hence, there was no reason for the complainant to presume that the train would come late... "


The court in its order, said: "The facts clearly goes to show that there was no proper display at the railway station on platform No.10 clearly stating that both Karwar Express and Kannur Express are one and the same, and there was no separate display of the train number of Karwar Express on that platform....That led to confusion to the complainant. In our opinion, the contention of the complainant is acceptable because when two trains are departing from the same platform and pulled by the same engine, the opposite party ought to have displayed in the digital sign board the train numbers and the names of both the trains, and not doing so leads to confusion to passengers." The court directed the Railways to refund Rs 480 to Anup along with a compensation of Rs 5,000, and another Rs 2,000 as litigation cost.


LONG-LASTING CONFUSION

The confusion over the two trains from Bangalore to Karwar and Kannur is a creation of the Railways. Ever since the metre gauge track between Bangalore and Mysore was converted to broad gauge, there was a demand to introduce a night train to Karwar. The first train (on the broad gauge) was introduced between Bangalore and Mangalore, but it was extended to Karwar in 2009. It would have been a long distance train running entirely within Karnataka. However, the train was later extended to Kannur in Kerala. Then came a High Court order directing the train to Karwar. The Railways bifurcated the train. While a few coaches were extended to Karwar, and the others continued towards Kannur.
Meanwhile, from Independence Day this year, the Railways has decided to shift the origin point of Yeshwantpur Kannur/ Karwar Express to Bangalore City Railway station (Majestic) instead ofYeshwantpur. The reason? Kannur Express was creating confusion even at the Yeshwantpurstation. Passengers who used to board the train at Yeshwantpur (the originating point) were caught between two Kannur Express' which used to start from the same place and at almost same time! To avoid confusion about the two 'Kannur' trains (16527 and 16517) leaving Yeshwantpur at almost the same time, the combined Karwar/Kannur Express is now starting from the City RailwayStation, instead of Yeshwantpur station

Source - http://www.bangaloremirror.com/Bangalore/Others/Railways-fined-for-confusing-passenger/articleshow/40350694.cms

Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi

Facts about 0% EMI Finance Schemes | InvestmentYogiInvestmentYogi:


This festival season you might have decided to upgrade your television set from LCD Flat Screen to LED Smart Television or purchase Samsung Note Book / Apple Iphone / Nokia Lumia replacing your old Android Mobile Handset, etc. Attractive promotional schemes from manufacturing companies and retail stores will roll out in the market from this week as Navratri – the first festival of the season is commencing from 5th Oct, 2013 followed by Dussehra, Diwali and Christmas. When we look at the statistics of last few years, purchase of consumer goods through 0% finance schemes has attracted many customers and sales through this scheme has contributed 20-30% to top-line for retailers in the market. However, before you take a decision to purchase consumer goods and get trapped in some promotional offers we recommend avoid 0% emi finance schemes offered by banks or credit cards because there are some hidden costs and disadvantages attached to it, which we will discuss in this article. Now, RBI has also stepped in from 24th Sep, 2013 to halt 0% finance schemes offered by banks to purchase consumer goods.

Disadvantages of purchasing consumer goods on 0% finance schemes are as follows:

1) Processing and documentation fees

Banks charge one time processing and documentation fees from customers, while purchase on 0% finance schemes. The fees vary from bank to bank, but will be in the range of Rs 500 to Rs 1,000. So, this will be additional cost on products you have purchased.

Take an example, Mr Abhishek opts to purchase 42 inch LED Smart Television Set which costs Rs 60,000 from store. Now, he applies for 0% finance scheme to pay monthly EMI on his purchase. To apply for the EMI schemes, he shells out additional cost of Rs 1,000 against processing and documentation charges. Now, his LED set would cost him for Rs. 61,000 (inclusive of processing charges).

2) Pay interest rates on your purchase

As per information gathered from various retail stores, it can be said that banks are charging hefty interest rates from customers while purchase on these finance schemes with 0% EMI. Interest rates vary for six months and nine months tenor among banks. These interest rates are as follows:

Banks                         6 months tenor     9 months tenor

State Bank of India  4.25%                     6.35%

HDFC Bank               5.2%                        7.25%

ICICI Bank               4%                            6-6.15%

Now, after RBI intervention in the 0 interest finance schemes to purchase consumer goods, banks such as SBI, Axis bank, Kotak Mahindra, etc have already withdrew zero percent facilities.

Taking forward Mr. Abhishek’s example, the cost price of Rs 60,000 for LED will have additional cost of interest expense over it. So, consider if he had opted to purchase LED with 6 months tenor (EMI instalments) from ICICI bank. The interest rate applicable will be 4% on his purchase. Now, EMI for 6 months will be Rs 10,117. So, at the end of 6 EMIs, total amount he pays off is Rs 60,702. So, purchase of RS 60,000 has now led him to pay additional cost Rs 1,702 (Rs 1,000 processing fee + Rs 702 interest cost).

3) Losing out on discount while shopping

Retail stores and shop dealers on roadside offer discount when you opt to purchase through cash or debit card. This discount varies on your negotiation skills and brand of the product you opt to purchase. I did a survey in few retail stores and dealer shops to understand cash discount they are ready to offer if shown interest to book the order immediately and pay full amount by debit card. Retail stores offered me cash discount in the range of 3-5% on purchase of LG, Panasonic, Toshiba, Onida, etc LED sets. On the other hand, dealer shops on roadside offer cash discounts between 5-10% while purchasing similar brands and models from them. But, getting a discount on Sony and Samsung LED’s is a difficult task as they are market leaders and have marginal operating price across all retail / dealer stores in India. However, it’s possible to get a price break or complementary gifts of Rs 2000 to Rs 2,500 on Sony and Samsung LEDs, but require smart negotiation skills to deal with the Store manager / Associates.

Next time, before stepping into a retail store to purchase any consumer good, get a best price for the same product from a nearby dealer store. Then, take a decision to purchase from a store which saves money from your pocket and gives better sales service.

Here, we can say Mr. Abhishek missed an opportunity to save Rs 3,000, assuming 5% cash discount on purchase of Rs 60,000 LED set. Instead, he paid Rs 61,702 for LED costing Rs 60,000 in the market.

Set your preferences before stepping out for shopping consumer goods

There are few questions which you require an answer to, before stepping out to purchase any consumer products in the market. There is a high probability you will be confused with various brands and features in the market. So, take an example of Mr. Abhishek, who decides to purchase LED television set. The points he would discuss with his family / wife will be:
Size of the LED set required to be installed in drawing room
Should we give preference to brand or additional features at best price?
Whether we want to buy from retail store or nearby dealer shop?
Payment option i.e. 0% emi finance scheme or cash (debit card)?
Set a budget price for consumer product you intend to purchase.

Based on a survey at few retail and dealer stores, I would like to share some insights as follows:
Associates at these stores tried to push products which have attractive features and gives them better commission (profit) on sales if you have not decided your preference before stepping out for shopping.
Associate gives demo of branded LEDs like Samsung and Sony on request but makes them inferior in features while compare to other brands like LG, Panasonic, Toshiba, etc. Also, prices of Samsung and Sony are much higher compared to other brands, so consumer easily gets diverted to other known brands while purchasing to get additional features at discounted price compared to branded market leaders. So, here if you have set your preference clearly, you will not fall in the trap of seller while shopping.

Conclusion

Let us calculate in table the total savings Mr. Abhishek will have from purchase of LED on cash with discount.

Particulars      Purchase on 0% finance schemes         Purchase on cash with discount
Cost price of LED (Rs)                 60,000                                             60,000
Add: Processing Fee (Rs)                  1,000                                             0
Add: Interest Payable (Rs)                 702                                                 0
Less: Cash Discount (@5%)                  0                                               3,000
Total Cost (Rs)                   61,702                                                         - 3,000
Total Savings (Rs)                4,702
Additional Expense Incurred (%) 8% (approx.) by opting for 6 months financing scheme


With purchase on cash, Mr. Abhishek has saved Rs 4,702 as computed above. This saving can be utilised for other expenses (shopping) or invest in short term FD to earn cumulative interest. So, for consumer benefit, RBI has also intervened and is now against 0% finance schemes on emi offered by banks at retail / dealer stores. They want shoppers (consumers) to do shopping on debit card/cash and get additional benefit of discount from stores. So, improve your negotiation skills to get the best price for consumer goods of your preference and enjoy your shopping in this festival season….!!!!!

The author has presented his personal views in this article through knowledge and interaction with people at few retail/dealer stores in Mumbai.

About the Author:

Hiral Thanawala is a PGDM (Finance) graduate and Certified Financial Planner with an experience of over 5 years in equity market and personal finance domain. He can be reached at expert@investmentyogi.com
'via Blog this'

Amendments Proposed in Consumer Protection Act to Facilitate Faster Disposal and On line filing of consumer complaints

'via Blog this'

The Government has introduced Consumer Protection (Amendment) Bill, 2011, in Lok Sabha on December 16, 2011, to facilitate quicker disposal of cases and to widen and amplify the scope of some of the provisions of the Act. The enactment of the Consumer Protection Act, 1986, was an important milestone in the field of consumer protection. In terms of the Act, consumer disputes redressal agencies have been set up at the 629 District, 35 State and National levels to render simple, inexpensive and speedy justice to consumers in respect of complaints against defective goods, deficient services and unfair/restrictive trade practices. With a view to faster redressal of complaints and to rationalize procedure of appointments in consumer disputes redressal agencies, it has been felt necessary to amend the Act.

Amendments proposed provide for the following-

On line filing of consumer complaints
Making provision for registering complaint by electronic form (on line filing complaint)- Since the Consumer Forums are being computerized it is proposed to make provision in the law to permit consumers to file complaints as well as pay fee online, which would make the consumer for a move towards e-governance/ time bound redressal.

Enforcement of orders as a Decree of Civil Court
Making provision that an order of the District Forum / State Commission/ National Commission will be enforced as a Decree of a Civil Court- This modification is considered essential in view of the experiences gained during implementation of the amended Act and is intended to deter willful offenders and also to ensure speedy and proper execution of the order of the consumer forums, so that justice to the aggrieved consumers is not frustrated.

Payment to be made for non-compliance of the order
Making provision for payment by every person for not complying of the order of District Forum / State Commission / National Commission of an amount of not less than Rs. 500 or 1½ per cent of the value of the amount awarded- whichever is higher, for each day of delay of such non-compliance of the order. This modification is considered essential in view of the experiences gained during implementation of the amended Act and is intended to deter willful offenders and also to ensure speedy and proper execution of the orders of the consumer forums, so that justice to the aggrieved consumers is not frustrated.

Powers to District Forum
Empowering District Forum to function in any other place apart from District HQrs, in consultation with State Government / State Commission – This provision is considered necessary to allow State Governments the flexibility to club neighboring Districts Forum as also give additional charge to President/Members to hear cases in more than one District Forum so as to effectively deal with the non-functionality of Districts Forum caused due to vacancy of President/Member.
Conferring powers to District Forum to issue order to the opposite party to pay reasonable rate of interest on such price or charges as may be decided by the District Forum- This provision is considered necessary to empower the consumer forum to award interest where the consumer has suffered due to protracted litigation.

Powers to State Government in selection process
Empowering State Government to refer back the recommendation of the Selection Committee for making fresh recommendation in order to avoid any delay in the Selection process- This is felt necessary to facilitate quicker filling up of the posts in the Consumer Forums and to avoid the consumer Forum remaining non-functional for long due to such vacancy thereby adversely affecting consumers’ interest.

Increase of age in the appointment
Increasing the minimum age for appointment as Member in the case of State Commissions from 35 to 45 years, and in case of National Commission from 35 to 55 years- This is proposed to improve the quality of persons applying for these posts.

Experience for members
Increasing the period of experience for appointment as Member in the case of State Commission from 10 years to 20 years and in the case of National Commission from 10 years to 30 years-This is proposed in order to improve the quality of persons applying for these posts.

Powers to National Commission / State Commission to direct any one to assist the case
Conferring powers to National Commission / State Commission to direct any individual or organization or expert to assist National Commission / State Commission in the cases of large interest of the consumers- This provision would enable the National Commission or the State Commission, in cases involving the larger interests of the consumers, an opportunity to suo moto enlist the services of an expert or an outside party, in an ongoing case, in the interest of justice.

Monitoring system of pending cases
Conferring powers to Central Government to call upon periodical reports of pending cases from National Commission and to State Government from State Commission or any District Forum- The provision is considered necessary to enable easy availability of data regarding filing and disposal of consumer complaints, which would help in monitoring the functioning of the consumer for a and effectiveness of the law.

The above said amendments proposed in the Act will go a long way in speedy redressal of Consumer grievances and sturdy protection of Consumer rights.
Read more: Amendments Proposed in Consumer Protection Act to Facilitate Faster Disposal and On line filing of consumer complaints http://taxguru.in/government-policy/amendments-proposed-consumer-protection-act-facilitate-faster-disposal-line-filing-consumer-complaints.html#ixzz1ind6lEgd

Law-in-Perspective: Municipal bodies responsible for proper civic amenities: High Court

Law-in-Perspective: Municipal bodies responsible for proper civic amenities: High Court

Executive inaction is a common cause in the country. So much so that the citizens have lose all hope of redressal before the civic authorities and have to approach and plead before the judiciary to take up their cause. A similar contingency took the residents of Panchkula city to file a public interest litigation before the Punjab and Haryana High Court, being aghast with the inaction of the Municipal Council, Panchkula in providing civic amenities, ensuring public hygiene, and upkeep and maintenance of Panchkula city. The plight of these residents was evident from the contents of their petition which the High Court duly noted as under;

Petitioners have made a grievance that worst ever civic conditions are prevailing in Panchkula. Roads are full of potholes, broken to the extent that metalled portion is not visible. The petitioners also lament Municipal Council for poor drainage system and non-maintenance of parks. The writ petitioners have gone to the extent of praying that this Court should direct the State Government to dissolve the house of Municipal Council, Panchkula as they have miserably failed to perform their statutory duties and obligations. The writ petitioners have made further averments that Municipal Council though having necessary adequate funds have been incurring wasteful expenditure for lack of vision and funds are pilfered due to corruption prevailing in the system to which many Municipal Councillors are party. To illustrate this averment, petitioners have pleaded that one year old foot paths are being replaced by new foot paths, cement chequered tiles used on a foot path and laid year ago after dismantling are being taken away by Contractor or other persons. Petitioners have urged that neither there was any necessity nor it was prudent to replace the old tiles and the funds spent in this manner could have been utilized in a better way.

The High Court, to examine the merits of the allegation, appointed an amicus curie who "submitted a report depicting pathetic conditions prevailing in the city of Panchkula in regard to roads, sanitation, water stagnation and non-operation of sewage treatment plant". These allegations were retorted to by the Municipal Council which "pleaded that Municipal Council, Panchkula came into existence on 25th December, 2001 and since then the Municipal Council, Panchkula, with limited staff and limited funds, is trying its best to provide basic amenities to the residents of the city." The High Court was, however, not impressed with the defense. It noted the aspirations of the citizens for better living conditions and the mandate was upon the Municipal authorities to provide such. The High Court observed,

We have heard counsel for the parties and gone through the pleadings made in the present writ petition. The present writ petition brings into focus aspirations and hopes of the citizens of this country, who, after 62 years of independence, seek and demand that the Municipal Councils, a form of local self government, should ensure good living conditions, civic amenities and public hygiene. Government functionaries, officials of local self government, its elected representatives, have not been able to answer the growing needs and expectations of the citizens of the country. Lack of vision and perspective, compulsion of a tight rope walk to balance the need of those, who live in slums and in highly urbanized area, inadequacy of funds, difficulty in generating revenue from the stakeholders, fiscal mismanagement, populist approach to satisfy the demands of all strata of life, are some of the reasons, which can be spelled to notice various difficulties faced by the Municipal Councils/ Corporations managing the affairs of cities of India. This requires a peep into functioning and management of cities and towns of India through local self government.

Traditionally, urban local bodies have been looking after the basic amenities of civic life, which included water supply and sanitation, roads and drains, maintenance of public places, burial grounds and crematoria, cattle pounds, provision of street lights, fire brigades and maintenance of markets. For performing these duties, certain administrative and regulatory functions have also been undertaken by urban local bodies, which included maintenance of register of births and deaths, grant of license for sale of various food items, control and planning of urban development, sanctioning of building plans, inspection of buildings constructed, maintenance of record of rights and also public health areas, such as eating places, slaughter houses and tanneries etc.

By passage of time, role of urban local bodies has been substantially broadened. Regulation of land use, planning of economic and social development, safeguarding the interests of weaker sections of society including the handicapped and mentally retarded, slum improvement and upgradation, urban poverty alleviation, promotion of cultural, educational and aesthetic aspects and protection of environment and safeguarding of health have become part of functions and duties falling within Municipal domain.

New Delhi Declaration, which was adopted by the U.N. General Assembly in December 1990, though recognizes that provision of basic amenities will remain one of the core activities of the urban local bodies, enlarging the scope further announce that following objects are required to be achieved by the Municipal local bodies:

1. Protection of the environment and safeguarding of health through the integrated management of water resources and liquid and solid waste;
2. Organisational reforms, promoting an integrated approach and including changes in procedures, attitudes, and behaviour, and the full participation of women at all levels;
3. Community management of services, backed by measures to strengthen the capacity of local institutions in implementing and sustaining water and sanitation programmes;
4. Sound financial practices, achieved through better management of existing assets and extensive use of appropriate technologies.

Government of India has further resolved that water needs to be managed as an economic asset rather than a free commodity. So the provision and management of water is also one of the essential duties of Municipal bodies. To achieve the above objectives and answer needs of the growing times, Union of India has formulated a scheme, called Jawaharlal Nehru National Urban Renewal Mission.

However, in view of the fact that the Municipal authorities had woken up to the cause and begun drawing action plans for the upheaval of the living conditions in the city of Panchula, the High Court refrained from passing any directions as it felt that "that the authorities are alive to the remedial measures and are geared to take recourse to mechanism, which shall provide better urban living."

Download Decision here.

Source - www.legalperspectives.blogspot.com

ICICI withholds Loan Obligations - Consumer Forum Rules against ICICI...

For some time now, consumer forums have been ruling on unfair practices carried out by banks, with ICICI Bank being one of the banks having been penalized in the past for various actions that have gone against consumer practices. In this case, a forum ruled against the bank after it was disclosed that the bank had not provided the consumer (who had taken a loan from the bank), all the details regarding the conditions and terms of the loan. The consumer had taken a personal loan from the bank, and after realizing the interest for the loan (after reviewing the EMI payments), realized that the loan was very expensive. However, closing out the loan was not as simple as one would have thought:

Pal had instituted a complaint under Consumer Protection Act saying that he availed a personal loan of Rs 40,636 from the bank in September 2006. The loan installments were Rs 2,199 each for 36 months but he was allegedly not informed about the rate of interest as well as other terms and conditions of the loan. The complaint added that the bank assured Pal that he would receive the terms and conditions at his postal address. It was averred that he received a cheque of Rs 37,719 but neither the terms of the loan were conveyed to him nor the rate of interest disclosed.

However, Pal was surprised to note from the EMI schedule that the rate of interest being charged from him was very high, which was against the guidelines issued by RBI. Unhappy with the rate of interest, he approached bank for foreclosure of loan, whereupon he was advised to complete the EMIs for at least six months in order to avail the benefit of one time settlement. It was alleged that even after receiving the full and final settlement amount, the bank illegally withdrew an amount of Rs 2,199 in year 2008 from his account as per statement.

This is something that has been in the past, many times; with the consumers either promised something else verbally and the same condition not being implemented in writing; in addition, bank officials in many cases give the impression that they are not too concerned about consumer service and make life more difficult for the bank customers

 Source

Power of Attorney holder entitled to file complaint under the Consumer Protection Act

Ahmedabad, Jan 5 (IANS) In a landmark judgement, the National Consumer Disputes Redressal Commission has directed an insurance firm to pay a man Rs.10,000 as damages for a malfunctioning television set, though the petition was rejected earlier because the man's parents had filed the complaint on his behalf, armed with a power of attorney.

The India Assurance Co. Ltd will also have to pay the Durga Dalal an interest of 10 percent per year on the amount, starting Jan 1, 2003, the New Delhi-based commission ruled.

Local consumer forums here had rejected the complaint earlier because someone armed with a power of attorney (POA) had filed it.

There is a legal debate in Indian courts on whether POA holders can file a case on the behalf of a victim.

The panel, which was deciding on a "revision petition" filed by Consumer Education and Research Society (CERS) here, held that a POA holder was entitled to file a complaint under the Consumer Protection Act.

Earlier, the district forum here had dismissed the complaint as "non-maintainable" on this ground. The Gujarat State Commission had also held that that the case did not stand. But the commission set their orders aside.

The parents of Durga Dalal alleged that the television had broken down suddenly and the insurance company was bound to reimburse consumers on the basis of a household policy. Durga had bought the TV set.

On July 30, 2002, his parents filed a claim for Rs.30,000. When the insurance company did not pay, they approached the district forum.

The insurance company held it had offered to pay Rs.10,000, though its surveyor had reported that the TV set was very old and valued at Rs.8,500-9,500. It also said the damage was caused by wear and tear that was not covered under the scope of the insurance policy.

The National Commission said the state commission and the district forum had taken "an over-technical view" in dismissing the complaint by "holding that father/mother of an aggrieved person or his power of attorney was not entitled to file a complaint under the Consumer Protection Act 1986".

"This is erroneous," the National Commission observed. "It is to be reiterated that under the Act, technicalities are not to be encouraged because the only procedure prescribed under the Act, is to follow principles of natural justice and to decide the matter after hearing both parties."