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Dispute Resolution Mechanism under Consumer Protection Act

Dispute Resolution Mechanism under Consumer Protection Act

Contents  hide 

1 Alternative Dispute Resolution

2 ADR in consumer disputes

3 ADR mechanism in consumer dispute resolution

4 Mediation: a resolution to companies under consumer protection act 2019

5 Consumer Protection Mediation Rules 2020

6 Conclusion

7 Reference

8 Related

Alternative Dispute Resolution

Alternative dispute resolution (ADR) gives consumers a fast, reliable and inexpensive way to achieve a remedy without the pressure and cost of taking formal legal action if attempts to settle conflicts directly with businesses fail. A broad range of mechanisms for ADR exist. Mediation, conciliation, aided negotiation, and arbitration are some of the most common types.

Mediation, conciliation, and aided negotiation are all consensual mechanisms in which contact between the parties is mediated by a neutral third party to help them achieve agreement. Arbitration is an adjudicative mechanism whereby

all parties obtain information from a neutral third party and make a decision that is final and legally binding.

The use of information communication technology (ICT) in alternative dispute resolution mechanisms has been growing in recent years. In particular, the advent of the Internet in the 1990s created a great deal of interest in online

ADR or online dispute resolution (ODR).

ADR in consumer disputes

Alternative Dispute Resolution (ADR) means, with the support of an unprejudiced dispute resolution entity, secretly

resolving any problems outside the court. This is better, faster and more economical than going to court to settle customer disputes.

The Consumer Protection Act, 1986, was enacted with the intention of better affirming buyer preferences and smart and clear resolution of customer inquiries. The Act provides consumer complaints with compelling, prudent, direct and quick redress. The Act offers persuasive, prudent, direct and rapid redress of the grievances of clients who are not

prepared to be provided by the basic courts. This Act is another example of ADR for the convincing contemplation of consumers’ debate.

Several studies say that the consumer forum, as opposed to their point, has been like civil courts. To describe this crisis, the ADR has contributed. However, the Consumer Fora was designed to ensure customer fairness in which ADR modes cannot be fully trusted.

ADR can help businesses maintain good relationships with customers and build a strong brand image. It fosters competition as well. However, the key benefit of the successful use of ADR in consumer matters is the increased satisfaction of consumers who have another choice to secure their rights – a process that is fair and appropriate and

uses of simpler, cheaper and faster dispute resolution methods.

ADR mechanism in consumer dispute resolution

The key steps for taking retreat to Alternative dispute resolution in India can be traced back on time to the Bengal Regulation Act, 1772 which gave that in all cases of the addressed records, parties are to present the same mediators whose decisions are regarded as extreme choice and should be last and left unchallenged. The Regulation Act, 1781 further considered that judges ought to prescribe the parties to introduce a request to commonly concurred individual and no prize of a go between could be put aside except if there were two witnesses that authority had submitted gross

blunder or was incline towards a party.

A suggestion incredibly was made to the Second Law Commission by Sir Charleswood to suit a uniform law with respect to carefulness. The Code of Civil Procedure was then settled as prerequisites be in 1859. Indian Contract Act, 1872 additionally sees mindfulness understanding as an excellent case to Section 28[1], which imagines that any understanding in constraint of cure through real methods is void. Thereafter, the Arbitration Act, 1899 was in moreover

endorsed to apply to the Presidency towns to support settlement of requests out of court. The Arbitration Act, 1940 revoked and displaced the previous Act of 1899.

Precisely when India changed into a state signatory to the convention on declaration under the Geneva Convention and recalling a definitive goal to offer impact on the same, the Arbitration (Protocol and Convention) Act was pass. Afterward, India in like manner transform into a signatory to the New York Convention and to give sway Foreign Awards (Recognition and Enforcement) Act, 1961 was passed. After advancement of Indian economy in the 1990’s

Arbitration and Conciliation Act, 1996 was mention which superseded the previous Act of 1940 and achieve revolutionary changes in the law of attestation and familiar thoughts like Conciliation with a confirmation of the

convenient settlement of issues/problems/discussions of principally business.

Mediation: a resolution to companies under consumer protection act 2019

The Act allows for mediation after admission of the case or also at a later point of the complaint proceedings before the District Commission as an Alternative Dispute Resolution. Within 5 days of obtaining the due consent of the parties

to resolve the matter by alternative means, the Act provides for referral to mediation.

If the mediation proceedings fail to decide or settle the problems between the parties, the District Commission would be allow, in compliance with the procedure provide for in the Act, to take up the case for its remedy.

Consumer Protection Mediation Rules 2020

The latest development of consumer mediation under the Act was when, on 15 July 2020[2], the Union Government declared the Consumer Protection (Mediation) Rules 2020. The foregoing rules include a list of matters which, in any

conditions, cannot be submit to mediation or referred to mediation. The list appears as follows: –

1. The issues surrounding medical negligence result in serious injury or death.

2. Offenses relating to defaults committed, for which one or more of the parties have made demands for the compounding of offences.

3. Cases involving serious fraud, document manipulation, forgery, impersonation, and intimidation claims.

4. Cases relating to criminal prosecution and non-compoundable offences.

5. Cases involving lawsuits affecting the public interest.

6. In any case other than those refer to under this law, if it appears to the Commission that there is no scope of resolution that may be satisfactory to the parties, the Commission before which the lis pendens suit is bring may choose not to refer the dispute for mediation, or else mediation may not be an efficient or sufficient instrument, having

regard to the circumstances of each case.

Mediation is the need of the hour to eradicate consumer cases efficiently and effectively, and it is commendable to

look at how the government has a concrete plan to appoint mediators who can settle conflicts, thus adding less

pressure to the judiciary.

Mediation, on the other hand, also provides an alternative source of revenue for individuals who can also use it as an

alternative source of income and, in recent times of instability, is thus a welcome step/move towards the roster of employment.

Conclusion

As a nation, by protecting and providing equal rights to eachother, we struggle hard against all odds and segregate toxic dealings and create a healthy competitive environment by reducing the stress of the market as well as the consumer. The Act of 2019 seeks to protect the best of consumer rights by establishing and recruiting, from time to

time, the authorities concerned through an efficient administrative system to settle consumer disputes with a

significantly lower level of flexibility for the aggrieved parties. In addition, it is entirely dependent on the consumer how

successfully they use the rights granted on them by the Act, which not only strengthened the dispute settlement process, but also decreased the burden on consumer commissions, which already have several cases pending before them for adjudication.


Reference

[1]Agreements in restraint of legal proceedings void.

[2] Notification G.S.R. 450(E), Ministry of Consumer Affairs, Food and Public Distribution, Department of Consumer Affairs, Government of India, New Delhi, published on 15th July, 2020.

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