Consumer Disputes Redressal Commissions: Jurisdiction and Powers

Legal provision

• Section 34: jurisdiction of the District Commission, pecuniary and territorial.
• Section 47: jurisdiction of the State Commission, including appeals and revision.
• Section 58: jurisdiction of the National Commission, including appeals and revision.
• Section 36 and 38: proceedings, admission, procedure and powers.
• Sections 40, 50 and 60: review.
• Sections 48 and 62: transfer of cases.
• Section 61: power of the National Commission to set aside ex parte orders.
• Section 65: service of notice by registered post, speed post, courier or electronic means.
• Section 66: experts to assist the State or National Commission.
• Section 69: limitation of two years.

Meaning and definition

Jurisdiction is the authority of a Commission to hear and decide a matter. It has several parts. Pecuniary jurisdiction depends on the value of the consideration paid. Territorial jurisdiction depends on the place. Appellate jurisdiction is the power to hear appeals. Under revisional jurisdiction, a Commission can call for the record and correct a jurisdictional error.

Detailed explanation

Step 1: Pecuniary jurisdiction

• The District Commission hears complaints where the value of the goods or services paid as consideration does not exceed Rs 1 crore (section 34), unless the Central Government prescribes another value.
• The State Commission hears complaints where the consideration exceeds Rs 1 crore but does not exceed Rs 10 crore (section 47).
• The National Commission hears complaints where the consideration exceeds Rs 10 crore (section 58).
• The Central Government has prescribed other values by the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021: up to Rs 50 lakh, above Rs 50 lakh up to Rs 2 crore, and above Rs 2 crore. The first applies to the District Commission, the second to the State Commission and the third to the National Commission.
• The test is the consideration paid, and not the amount of compensation claimed.
• Complaints against unfair contracts go to the State Commission up to Rs 10 crore, and to the National Commission above Rs 10 crore.

Step 2: Territorial jurisdiction

A complaint is filed in a District Commission within whose limits:

1. the opposite party, or each of them, ordinarily resides, carries on business, has a branch office or personally works for gain;
2. any of the opposite parties actually and voluntarily resides, carries on business, has a branch office or works for gain, with the permission of the District Commission;
3. the cause of action wholly or in part arises; or
4. the complainant resides or personally works for gain.

The State Commission has similar rules within the State (section 47(4)).

Step 3: Original, appellate and revisional jurisdiction

• Original: each Commission hears complaints in its value band.
• Appellate: the State Commission hears appeals against orders of the District Commissions in the State (section 47(1)(a)(iii)). The National Commission hears appeals against State Commission orders and against orders of the Central Authority (section 58(1)(a)(iii) and (iv)).
• Revisional: the State Commission may call for the records of any consumer dispute pending before or decided by a District Commission in the State. It may do so where it appears that the District Commission exercised a jurisdiction not vested in it by law, failed to exercise a jurisdiction vested in it, or acted illegally or with material irregularity (section 47(1)(b)). The National Commission has a similar power over State Commissions (section 58(1)(b)).
• In SpiceJet v. Ranju Aery, the National Commission, in its revisional jurisdiction under the 1986 Act, refused to reappreciate the evidence on concurrent findings of the two lower fora.

Step 4: Composition and Benches

• A District Commission proceeding is conducted by the President and at least one member, who sit together (section 36(1)).
• The State and National Commissions may exercise their powers through Benches. The senior-most member presides over a Bench.
• If the members differ, the opinion of the majority prevails. If they are equally divided, the point is referred to the President or another member.

Step 5: Powers

• Powers of a civil court for summoning and examining witnesses on oath, discovery and production of documents, evidence on affidavit, laboratory reports and commissions for examination (section 38(9)).
• Power to pass interim orders (section 38(8)).
• Power to review its order for an error apparent on the face of the record (sections 40, 50 and 60).
• Power to transfer cases: the State Commission within the State (section 48), the National Commission between States (section 62).
• Power to set aside ex parte orders (the National Commission under section 61).
• Power to admit a complaint after the period of two years if the delay is explained, recording reasons (section 69).
• Power to direct an expert or organisation to assist where larger consumer interest is involved (section 66).
• Power to declare an unfair contract term null and void (sections 49(2) and 59(2)).
• Power to direct an electronic service provider to give information or documents (section 38(4)).
• Power to order costs, to enforce orders as decrees (section 71), and to punish non-compliance as a Judicial Magistrate of the first class (section 72).

Step 6: Service of notice

Notices are served by registered post acknowledgment due, speed post, an approved courier, or any other mode including electronic means. A notice can also be served on an electronic service provider at the address it gives on its platform (section 65).

Step 7: Limits on the Commissions

• They cannot hear a complaint by a person who is not a consumer, such as one who bought for resale.
• They cannot hear a complaint against free or personal service. In Bar of Indian Lawyers v. D.K. Gandhi, an advocate's service was held outside the Act.
• They cannot admit a complaint filed after two years, unless the delay is condoned with reasons.

Don't confuse: original, appellate and revisional jurisdiction

Common mistakes

• Using the compensation claimed to decide the Commission. It is the consideration paid.
• Giving Rs 1 crore and Rs 10 crore without noting the 2021 Rules.
• Forgetting that the complainant's own residence gives territorial jurisdiction.
• Forgetting the revisional power of the State and National Commissions.
• Forgetting that appeals against the Authority go to the National Commission.

Apply it

Leading case laws

• SpiceJet Ltd. v. Ranju Aery (2017)

  Facts. The District Forum and the State Commission found SpiceJet liable for cancelling a flight with no refund. SpiceJet filed a revision petition before the National Commission.

  Principle. The National Commission, in its revisional jurisdiction, will not disturb concurrent findings of fact unless there is jurisdictional error or material illegality.

  Significance. Limits of revisional jurisdiction.

• Lucknow Development Authority v. M.K. Gupta (1994)

  Facts. A statutory authority said that the forum had no jurisdiction because it acted in a sovereign function.

  Principle. The Supreme Court held that the Act applies to the housing service.

  Significance. Jurisdiction extends to public bodies that give services for consideration.

• Bar of Indian Lawyers v. D.K. Gandhi (2024)

  Facts. A client sued his advocate before a consumer forum.

  Principle. An advocate's service is a contract of personal service, so the complaint is not maintainable.

  Significance. Limits on what the Commissions can hear.

How to write this answer in the exam

Key points to remember

• Pecuniary jurisdiction is by consideration paid.
• Territorial jurisdiction includes the complainant's residence or place of work.
• State and National Commissions also have appellate and revisional jurisdiction.
• Commissions have civil court powers and can pass interim orders.
• Limitation is two years.

Quick self-test

Related topics

• Redressal Machinery under the Consumer Protection Act
• Procedure for filing a consumer dispute
• Continuous cause of action