Practical Problems_Contract Act_80

F picks up a diamond on the floor on k's shop. He hands it over to K to keep it till true owner is found out. No one appears to claim it for quite some weeks in spite of the wide advertisement in the newspapers. F claims the diamond from K Who refuses to return. Comment.

A person, who finds goods to another and takes them into his custody, is subject to the same responsibilities as a bailee. He is bound to take as much care of the goods as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quality and value. If he does not, he will be guilty of wrongful conversion of the property. Till the owner is found out, the property in goods will vest in the finder and he can retain the goods as his own against the whole world. K is bound to return the diamond to F who is entitled to retain the diamond against the whole world except the true owner.

Consumer Protection Act_Practical Problem_2

I had got a confirmed ticket on Sahara Airways. The flight was later cancelled on account of technical snag. Is it a deficiency in service?

Cancellation of flight on account of technical snag is not deficiency in service as it is due to unavoidable circumstances. However, you ought to be allowed refund of the fare but no
compensation can be granted on account of any loss suffered by you (if any) because of the said cancellation.

Conuser Protection Act_Practical Problem_1

I had purchased seeds from a party. The seeds did not germinate. The other party took the plea that I was not a consumer. Whether purchase of seeds for the purpose of agriculture is purchase for commercial purpose?

Purchase made for agriculture is not for commercial purpose. Therefore, the complainant is a consumer and entitled to seek redressal of his grievance in a Consumer Court against the party
which supplied defective seed to him.

Medical practitioner can be sued under CPA ?

I have instituted a complaint before the Consumer Court against a Medical Practitioner. My complaint has been challenge on the ground that a Medical Practitioner cannot be sued under the Consumer Act. What does law provide?

Yes, a medical practitioner can be sued under the Consumer Protection Act 1986 for his or her professional negligence resulting in damage to patient. Section 2 (d) in defining a consumer in Clause (ii) uses the expression ‘hires and avails of”. The word “hire” means employ of wages or fees”.

Secondly the words “any service” in s. 2 (d) (ii) in Consumer Protection Act. A eloquent to bring the delinquent medical practitioners within the ambit of Consumer Protection Act. Thirdly, s. 2 (o), Consumer Protection Act which defines service exempts only two types of services, one “service free of charge” and another “contract of personal service” postulates a relationship of master and servant. A medical man whose service is requisitioned for a patient answers the clause “ contract of service” but never “a contract of personal service”. So, a negligent medical professional can be proceeded under the Consumer Protection Act 1986.

How to File a Complaint under Consumer Protection Act ?

Procedures for filing complaints and seeking redressal are simple.

There is no fee for filing a complaint before the District Forum, the State Commission or the National Commission. ( A stamp paper is also not required) There should be 3 to 5 copies of the complaint on plain paper. The complainant or his authorized agent can present the complaint in person. The complaint can be sent by post to the appropriate Forum / Commission.

A complaint should contain the following information
(a) The name, description and the address of the complainant.
(b) The name , description and address of the opposite party or parties, as the case may be, as far as they can be ascertained;
(c) The facts relating to complaint and when and where it arose;
(d) Documents, if any, in support of the allegations contained in the complaint.
(e) The relief which the complainant is seeking.

The complaint should be signed by the complainant or his authorized agent. The complaint is to be filed within two years from the date on which cause of action has arisen.

Object of the Consumer Protection Act, 1986

The main objective of the act is to provide for the better protection of consumers. Unlike existing laws, which are punitive or preventive in nature, the provisions of this Act are compensatory in nature. The act is intended to provide simple, speedy and inexpensive redressal to the consumers’ grievances, and reliefs of a specific nature and award of compensation wherever appropriate to the consumer. The act has been amended in 1993 both to extend its coverage and scope and to enhance the powers of the redressal machinery.

The basic rights of consumers as per the Consumer Protection Act (CPA) are

1. The right to be protected against marketing of goods and services which are hazardous to life and property
2. The right to be informed about the quality, quantity, potency, purity, standard and price of goods, or services so as to protect the consumer against unfair trade practices
3. The right to be assured, wherever possible, access to variety of goods and services at competitive prices
4. The right to be heard and be assured that consumers’ interests will receive due consideration at appropriate forums
5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulsous exploitation of consumers
6. The right to consumer education

An Indian Mind

An Indian man walks into a bank in New York City and asks for the loan officer.
He tells the loan officer that he is going to India on business for two weeks and needs to borrow $5,000.

The bank officer tells him that the bank will need some form of security for the loan,
so the Indian man hands over the keys and documents of new Ferrari parked on the street in front of the bank. He produces the title and everything checks out. The loan officer agrees to accept the car as collateral for the loan.

The bank's president and its officers all enjoy a good laugh at the Indian for using a $250,000 Ferrari as collateral against a $5,000 loan. An employee of the bank then drives the Ferrari into the bank's underground garage and parks it there.

Two weeks later, the Indian returns, repays the $5,000 and the interest, which comes to $15.41.
The loan officer says, "Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multi millionaire. What puzzles us is, why would you bother to borrow "$5,000" ?


The Indian replies: "Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return'"