Consumer Commissions

• The Consumer Protection Act, 2019 replaced the Consumer Protection Act, 1986.
• The Act establishes a three-tier consumer dispute redressal mechanism:
  • District Consumer Disputes Redressal Commission (District Commission)
  • State Consumer Disputes Redressal Commission (State Commission)
  • National Consumer Disputes Redressal Commission (National Commission)
• The commissions provide an alternative dispute resolution mechanism for consumers and are quasi-judicial bodies, also known as consumer forums or consumer courts.

District Commission

• Established by the state government in each district, with the possibility of multiple commissions per district.
• Functions at the district headquarters or other notified places, in consultation with the State Commission.

State Commission

• Established by the state government.
• Functions at the state capital or other notified places, in consultation with the State Commission.
• May establish regional branches.

National Commission

• Established by the central government.
• Functions at the national capital region and may establish regional branches.
• The National Commission was constituted in 1988.

National Consumer Disputes Redressal Commission

Composition

• Consists of a President and not less than four or not more than eleven members (as of 2020).
• At least one member must be a woman.
• The central government sets rules for qualifications, appointment, salaries, allowances, resignation, removal, and other service conditions.
• Appointed by the central government on the recommendations of a search-cum-selection committee chaired by the Chief Justice of India or a Judge of the Supreme Court.
• Must be at least 50 years old.
• Hold office for 4 years or until 70 years of age for the President and 67 years for members.
• The salary and allowances cannot be varied to their disadvantage after their appointment.

Jurisdiction

• Pecuniary Jurisdiction:
  • Entertains complaints where the value exceeds Rupees Ten Crores.
  • Above Rupees Two Crores, as of 2021.
• Appellate Jurisdiction:
  • Entertains appeals against State Commission orders within 30 days.
  • May accept appeals after 30 days if there is sufficient cause.
  • Entertains appeals against the Central Consumer Protection Authority (CCPA) orders within 30 days of receipt.
• Revisional Jurisdiction:
  • Calls for records and passes orders in consumer disputes pending before or decided by any State Commission under certain circumstances:
    • If the State Commission has exercised a jurisdiction not vested in it by law
    • If the State Commission has failed to exercise a jurisdiction so vested
    • If the State Commission has acted illegally or with material irregularity

Other Powers

• Declare unfair contract terms as null and void.
• Review its orders if there is an error apparent on the face of the record, either on its motion or on application within 30 days.
• Set aside orders passed ex-parte upon application by the aggrieved party.
• Transfer complaints pending before State Commission or District Commission.

Administrative Control

• The National Commission has administrative control over all State Commissions.
  • Monitoring performance through periodical returns on institution, disposal, and pendency of cases.
  • Investigating allegations against State Commission members and submitting reports.
  • Issuing instructions regarding:
    • Adoption of uniform procedures
    • Prior service of documents
    • Furnishing of English translations
    • Speedy grant of copies
  • Overseeing the functioning of the State Commission or the District Commission, without interfering with quasi-judicial freedom.
• Appeals against the National Commission lie with the Supreme Court within 30 days.

State Consumer Disputes Redressal Commission

Composition

• Consists of a President and members as prescribed, in consultation with the central government.
• The central government makes rules for the qualifications for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission.
• The state government makes rules for salaries, allowances, and other service conditions.

Jurisdiction

• Pecuniary Jurisdiction:
  • Entertains complaints exceeding Rupees One Crore but not exceeding Rupees Ten Crores.
  • Above Rupees Fifty Lakhs but up to Rupees Two Crores, as of 2021.
• Appellate Jurisdiction:
  • Entertains appeals against District Commission orders within the state.
  • Appeals can be made within 45 days.
• Revisional Jurisdiction:
  • Calls for records and passes orders in consumer disputes pending before or decided by any District Commission within the state under certain circumstances:
    • If the District Commission has exercised a jurisdiction not vested in it by law
    • If the District Commission has failed to exercise a jurisdiction so vested
    • If the District Commission has acted illegally or with material irregularity

Other Powers

• Declare unfair contract terms as null and void.
• Review its orders if there is an error apparent on the face of the record, either on its motion or on application within 30 days.
• Transfer complaints pending before a District Commission to another District Commission within the state.

Administrative Control

• The State Commission has administrative control over all the District Commissions within its jurisdiction.

District Consumer Disputes Redressal Commission

Composition

• Consists of a President and members as prescribed, in consultation with the central government.
• The central government makes rules for the qualifications for appointment, method of recruitment, procedure for appointment, term of office, resignation and removal of the President and members of the District Commission.
• The state government makes rules for salaries, allowances, and other service conditions.
• Vacancy: the state government may direct another specified District Commission to exercise the jurisdiction in respect of that district also or the President or a member of any other specified District Commission to exercise the power and discharge the functions of the President or member of that District Commission also.

Jurisdiction

• Entertains complaints where the value does not exceed Rupees One Crore.
• Up to Rupees Fifty Lakhs, as of 2021.
• Functions at the district headquarters, or as notified, in consultation with the State Commission.
• Review its orders if there is an error apparent on the face of the record, either on its motion or on application within 30 days.

Pecuniary Jurisdiction (Table 37.1)

Sl. No.	Name	Under 2021 Rules	Under 2019 Act	Under 1986 Act
1.	District Commission	Up to Rs. 50 lakhs	Up to Rs. 1 crore	Up to Rs. 20 lakhs
2.	State Commission	Above Rs. 50 lakhs but up to Rs. 2 crores	Above Rs. 1 crore but up to Rs. 10 crores	Above Rs. 20 lakhs but up to Rs. 1 crore
3.	National Commission	Above Rs. 2 crores	Above Rs. 10 crores	Above Rs. 1 crore