Section 27A and Section 28 of Consumer Protection Act 1986: Appeal and Protection of Action Taken in Good Faith
Sections 27A and 28 of the Consumer Protection Act, 1986 dealt respectively with appeals against penalty orders and protection for acts done in good faith. The Consumer Protection Act, 1986 has since been repealed by the Consumer Protection Act, 2019. For current law, the corresponding provisions are principally Section 73, dealing with an appeal against an order under Section 72, and Section 98, dealing with protection of action taken in good faith.
What did Section 27A of the Consumer Protection Act 1986 provide?
Section 27A was titled Appeal against order passed under section 27. Section 27 of the 1986 Act provided penalties for failure or omission to comply with an order of a consumer forum. Section 27A created the appellate route against such a penalty order.
Appellate route under former Section 27A
- An order of the District Forum could be appealed to the State Commission.
- An order of the State Commission could be appealed to the National Commission.
- An order of the National Commission could be appealed to the Supreme Court.
- The appeal was available on both facts and law.
- The statutory period for filing the appeal was thirty days, subject to condonation where sufficient cause for delay was shown.
The provision operated notwithstanding the Code of Criminal Procedure, 1973. It also restricted further appeals except as expressly provided by the section.
Current law: Section 72 and Section 73 of Consumer Protection Act 2019
Under the Consumer Protection Act, 2019, Section 72 deals with penalty for non-compliance with an order of the District Commission, State Commission or National Commission. A person who fails to comply with such an order may face imprisonment, fine, or both, within the limits prescribed by Section 72.
Section 73 is the current corresponding appeal provision. Where an order is passed under Section 72(1), an appeal lies on facts and law from the District Commission to the State Commission, from the State Commission to the National Commission, and from the National Commission to the Supreme Court. The statutory appeal period is thirty days, with power to entertain a delayed appeal where sufficient cause is shown.
For the official statutory text, see the Consumer Protection Act, 2019 on India Code.
What did Section 28 of the Consumer Protection Act 1986 provide?
Section 28 was titled Protection of action taken in good faith. It protected members of the District Forum, State Commission and National Commission, and officers or persons acting under their direction, from suits, prosecution or other legal proceedings for qualifying acts done or intended to be done in good faith under the 1986 Act, its rules or orders.
The expression good faith is important. The provision was not a general immunity for every act. Its protection was linked to acts done or intended to be done in good faith while exercising functions or carrying out orders under the consumer protection law.
Current law: Section 98 of Consumer Protection Act 2019
Section 98 of the Consumer Protection Act, 2019 now provides protection for action taken in good faith. Its coverage includes the Presidents and members of the District Commission, State Commission and National Commission, as well as the Chief Commissioner, Commissioner, officers, employees and other persons performing duties under the 2019 Act.
In substance, Section 98 bars a suit, prosecution or other legal proceeding for an act done or intended to be done in good faith in pursuance of the 2019 Act or under rules or orders made under it. The 2019 provision therefore updates and broadens the institutional references used in former Section 28.
Difference between the old and current provisions
Former Section 27A of the 1986 Act: appeal against an order under former Section 27.
Current Section 73 of the 2019 Act: appeal against an order under current Section 72.
Former Section 28 of the 1986 Act: good-faith protection for members and persons acting under the consumer forums.
Current Section 98 of the 2019 Act: good-faith protection under the present statutory framework, including the Consumer Commissions and specified Central Consumer Protection Authority functionaries.
Which provision should be used now?
For a current dispute concerning punishment for non-compliance with an order of a Consumer Commission, Sections 72 and 73 of the Consumer Protection Act, 2019 should be examined. For protection claimed by a statutory functionary for an act done in good faith under the present Act, Section 98 is relevant. In an older proceeding arising under the repealed 1986 Act, the effect of Section 107 of the 2019 Act and the applicable savings principles should also be considered.