Three-Tier Redressal Mechanism, E-Filing, and Continuous Cause of Action — MCQs

Question 1 of 19

Score: 0/0

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

Under the Consumer Protection Act, 2019 and the Rules of 2021 made under section 34, the District Commission has pecuniary jurisdiction where the value of goods/services paid as consideration is
- Up to fifty lakh rupees (correct answer)
- Above two crore rupees
- Exactly one crore rupees only
- There is no pecuniary limit for the District Commission
Explanation. Section 34 fixes Rs 1 crore unless the Central Government prescribes another value. The 2021 Rules prescribed up to fifty lakh rupees for the District Commission.
Under the 2021 Rules, the State Commission has pecuniary jurisdiction where the consideration paid is
- Above fifty lakh rupees up to two crore rupees (correct answer)
- Only below ten lakh rupees
- Only above five crore rupees
- The State Commission has no pecuniary jurisdiction
Explanation. The State Commission's pecuniary jurisdiction covers consideration exceeding fifty lakh rupees but not exceeding two crore rupees.
What is the correct order of appeal under the three-tier Commission structure?
- National → State → District → Supreme Court
- District → State → National → Supreme Court (correct answer)
- State → District → Supreme Court → National
- District → Supreme Court → State → National
Explanation. The correct appellate chain is District Commission → State Commission → National Commission → Supreme Court.
Besides the opposite party's location and where the cause of action arose, where else may a complaint under the 2019 Act be filed?
- Only in the national capital, regardless of residence
- Where the complainant resides or personally works for gain (correct answer)
- Only where the manufacturer's factory is located
- Nowhere else; those are the only two options
Explanation. The 2019 Act allows a complaint to be filed where the complainant resides or personally works for gain — a consumer-friendly addition over the 1986 Act.
Section 35 of the Consumer Protection Act, 2019 permits a complaint to be forwarded
- Only in writing, on paper, by registered post
- In writing or in electronic mode (correct answer)
- Only orally before the Commission in person
- Only through a licensed advocate's sealed envelope
Explanation. Section 35 expressly allows complaints to be forwarded in writing or in electronic mode (e-filing).
Under Section 69, what is the standard limitation period for filing a consumer complaint from the date the cause of action arose?
- Six months
- Two years (correct answer)
- Five years
- There is no limitation period at all
Explanation. Section 69 sets a two-year limitation period from the date the cause of action arose, condonable for sufficient recorded cause.
Can a Commission admit a complaint filed after the two-year limitation period under Section 69?
- Never, under any circumstances
- Yes, if the complainant shows sufficient cause for the delay and the Commission records its reasons for condoning it (correct answer)
- Yes, automatically, with no explanation required
- Only if the complainant pays double the normal court fee
Explanation. A delayed complaint can be admitted if sufficient cause is shown and the Commission records reasons for condoning the delay.
What does the doctrine of 'continuing cause of action' recognise?
- That limitation never applies to consumer complaints
- That where a wrong is an ongoing state of affairs rather than a single event, a fresh cause of action arises for as long as the wrong continues (correct answer)
- That only wrongs lasting more than five years qualify for any remedy
- That a complaint must always be filed within six months regardless of the nature of the wrong
Explanation. Continuing cause of action means a fresh cause of action arises throughout the duration of a persisting wrong, rather than limitation running only from the very first instance.
A builder fails to hand over flat possession for four years despite promising delivery within two years, with the delay continuing to the date of the complaint. Is the complaint time-barred under Section 69?
- Yes, automatically, since more than two years passed since the promised date
- No, because the ongoing failure to deliver possession is a continuing wrong, generating a fresh cause of action throughout its continuance (correct answer)
- Yes, but only if the buyer paid less than ten lakh rupees
- No, but only if the builder admits fault in writing
Explanation. Since the builder's failure to deliver possession is an ongoing wrong, the continuing cause of action doctrine means the complaint is not barred by Section 69's two-year limitation.
A person ordered by a District Commission to pay an amount appeals to the State Commission. Under section 41, before the appeal is entertained he must deposit:
- Nothing
- Fifty per cent of that amount (correct answer)
- Ten per cent of that amount
- The full amount
Explanation. The second proviso to section 41 says that no appeal by a person required to pay an amount under a District Commission order is entertained unless he has deposited fifty per cent of that amount.
Under Section 36 of the Consumer Protection Act, 2019, within how many days should the District Commission ordinarily decide whether to admit a complaint?
- Seven days
- Twenty-one days (correct answer)
- Thirty days
- Sixty days
Explanation. Admissibility should ordinarily be decided within twenty-one days. If it is not decided in that time, the complaint is deemed admitted.
If the District Commission does not decide admissibility within the prescribed time, the complaint is:
- Deemed rejected
- Transferred to the State Commission
- Deemed to have been admitted (correct answer)
- Returned to the complainant for refiling
Explanation. Section 36(3) says the complaint is deemed admitted if the issue is not decided within the period.
How long does the opposite party get to give its version of the case, and by how much can the Commission extend it?
- Thirty days, extendable by up to fifteen days (correct answer)
- Fifteen days, extendable by up to thirty days
- Seven days, extendable by up to seven days
- Sixty days, with no extension
Explanation. Section 38 gives thirty days, extendable by not more than fifteen days.
The District Commission should endeavour to decide a complaint that needs no testing of goods within:
- One month from filing
- Six months from admission
- One year from filing
- Three months from the date the opposite party receives notice (correct answer)
Explanation. Section 38(7): three months, or five months where analysis or testing of goods is needed.
In a complaint that needs the testing of goods, the laboratory must report to the Commission within:
- Ten days
- Forty-five days, or a longer period the Commission allows (correct answer)
- Ninety days
- One year
Explanation. Section 38(2)(c): the laboratory reports within forty-five days of the reference, or a longer period the Commission grants.
Under Section 38(9), the District Commission has the powers of which court for specified matters such as summoning witnesses and receiving evidence on affidavits?
- A criminal court under the Code of Criminal Procedure
- The High Court
- A civil court trying a suit under the Code of Civil Procedure, 1908 (correct answer)
- A Lok Adalat
Explanation. Section 38(9) gives the District Commission the powers of a civil court under the Code of Civil Procedure, 1908 while trying a suit for the listed matters.
Within what time must an application for review of a District Commission order be made, on the ground of an error apparent on the face of the record?
- Thirty days of the order (correct answer)
- Seven days
- Ninety days
- One year
Explanation. Section 40 allows review for an error apparent on the face of the record, on its own motion or on a party's application within thirty days.
Which of the following can the District Commission order under Section 39(1)?
- Imprisonment of the seller
- Return of the price with interest, replacement of goods, and a corrective advertisement (correct answer)
- Cancellation of the seller's trade licence
- A fine payable directly to the complainant as a criminal penalty
Explanation. Section 39(1) lists remedies such as removing defects, replacement, refund with interest, compensation, discontinuing unfair trade practices and corrective advertisement. It does not include imprisonment.
Under Section 39(1), where many consumers who cannot be easily identified have suffered loss, the sum the Commission directs the opposite party to pay must be at least:
- Ten per cent of that value
- Fifty per cent of that value
- Twenty-five per cent of the value of the defective goods sold or service provided (correct answer)
- The full value of that goods or service
Explanation. The proviso fixes the minimum at not less than twenty-five per cent of the value of the defective goods sold or service provided.