Proposed amendments in Consumer Protection Act : Dear Doctors, don't get Panic....

Perhaps the Doctors are not  scared of anything than The Consumer Protection Act or CPA. Medicos often refer it to the draconian legislation. Its been more than 3 decades that the Doctors and the Hospitals have been brought under the 4 corners of this Law.

Now  the Consumer Protection Bill, 2017 which was approved by the Union Cabinet last year  is likely to be to be taken up during this Budget session, which is to commence tentatively from January 29, 2018. The bill has been already approved by the Lower House i.e. the Loksabha.  

The CPA is a social legislation and its main aim and object reads as under 

"An Act to provide for the better protection of the Interest of Consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers' disputes and for matters connected therewith".

Lets see the salient features of the Proposed new Amendment :

1. False and Misleading advertisement : This is the welcome move. Whoever makes such false/misleading advertisement shall be liable for fine which may extend to Rs.10 lakhs and imprisonment that may extend to 2 years, for the first offence and for subsequent offences, the fine may increase to Rs.50 lakhs and the imprisonment may extend to 5 years.

2. A new provision for Product Liability has been inserted vide Chapter VI. By this provision, if any harm is caused to the Consumer by any defective product, compensation can be claimed by the Consumer, subject to certain exceptions.

3. The provisions for e-filing of complaints have been made.

4. The Mediation or Alternate Disputes redressal  mechanism is introduced. In simple words it allows you to amicably settle the dispute. Most important, it is never compulsory to settle the matter in mediation. It's completely optional to either of the party.

5.The  Bill, 2018 provides for the establishment of an executive agency to be known as the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers; make interventions when necessary to prevent consumer detriment arising from unfair trade practices and to initiate class action including enforcing recall, refund and return of products, etc. This fills an institutional void in the regulatory regime extant. 

Now let's see the provision which Doctors think it is dreadful.

6. The Pecuniary Jurisdiction of District, State and National Forums have been increased and the Doctors are scared of this amendment. We will see it later.

This is the provision which Doctors, in my humble opinion, are unnecessarily stretching to their detriment.

 Please always remember that increasing or changing the pecuniary Jurisdiction is the common thing under Law. In Civil matters also the jurisdiction is changed from time to time. 

Now Jurisdiction of District Forum has been increased from 20 lakhs upto Rs.1 Crore. The State forum Jurisdiction has been increased to Rs.10 Crores and above Rs.10 Crore, all the disputes shall be dealt directly by National Forum.

However this does not mean that Doctors will be liable to pay that much compensation. There are some misleading messages have become viral on Social media. Previously also any claims above Rs. 1 crore without any limits were filed in National Commission.

Merely filling of a complaint does not mean that the Compliant will always be decided in favour of the Complainant. Therefore do not get panic and think for higher premium insurance policies. The Courts do not award the compensation as prayed for. The Courts have to follow certain criterias. 

I feel practically from one angle, it is beneficial for Doctors too. Now the Doctors will not require to go to State Forum (State Capital) or National Forum (New Delhi) as  District forum pecuniary jurisdiction has been increased to Rs.10 Crore. So the Doctor need not travel to some other distinct place and search for a lawyer. 

In absence of these amendments also, a compliant had right to claim e.g. Rs. 100 crore compensation. Take the Instance of Dr. Kunal Saha case. Total Compensation was claimed Rs.100 crore +, but the Courts granted Rs.11 Crs, considering the facts of that case.

 In majority, all the complaints will be filed in District Forum. There were many cases where just to confirm jurisdiction on Higher Forum, the complaints were filed with inflated claims and same were dismissed too.

Always remember that one cannot stop any one from approaching the Court, it is the constitutional right available to the citizen. However burden lies on the Complainant him/her to prove his/her case.

Territorial Jurisdiction :

The Law is clear since beginning that any compliant, subject to pecuniary jurisdiction, can be filed where the Complainant or the Opponent ordinary resides or carries on business or where the cause of action has arisen partly or in whole. 

What Doctors should really ask for ?

Do not get panic by the new amendment. Mere increase in pecuniary jurisdiction does not mean Courts will also start allowing the Complaints to that effect. Practically, the Doctors should ask for the insertion provision of compensation for filing of frivolous cases. That may deter the filing of frivolous complaints. Even otherwise under general law, Doctors may sue for the compensation for the malicious prosecution, but hardly any Doctor does so. 
The Doctors may also ask for Mandatory Expert opinion while deciding the medico-legal cases, since the judges may not have the requisite knowledge.
The Amendment Act,  in my humble opinion, if challenged in Courts, will not be of any use. Thus we have to accept it and do our job sincerely and honestly like we always do. Do not get carried away by the 'viral messages'. 

Thanks and Regards,

Adv. Rohit Erande.

Pune. ©