Consumer Disputes Redressal Commission: Composition, Appointment, Tenure & Salary

March 27, 2024 2566 0

Introduction

The Consumer Protection Act, 2019 provides for the establishment of a 3-tier Consumer dispute redressal machinery at the District, State and National levels.

  • District Consumer Disputes Redressal Commission (District Commission): Established in each district by the state government. 
    • More than one District Commission can also be established in a district. 
  • State Consumer Disputes Redressal Commission (State Commission): Established in the state by the state government. 
    • It shall ordinarily function at the state capital and perform its functions at such other places as the state government may notify.
  • National Consumer Disputes Redressal Commission (National Commission): Established by the central government. 
    • It shall ordinarily function at the national capital region and perform its functions at such other places as the central government may notify. 
    • The central government may also establish regional branches of the National Commission. [UPSC 2023].

It provides an alternative dispute resolution mechanism exclusively for consumers and functions as a quasi-judicial body.

National Consumer Disputes Redressal Commission

Composition
  • President + not less than 4 or not more than such number of members as may be prescribed.
  • Central Government (2020): Prescribed President and not less than four or not more than eleven members. At least one member shall be a woman.
Appointment
  • President and Members: Appointed by the central government on the recommendations of a search-cum·selection committee chaired by the CJI/ Judge of SC, who is nominated by the CJI. 
  • Minimum Age: should be at least 50 years of age.
Tenure 4 years or until they attain the age of 70/ 67 years in the case of the President/ members, whichever is earlier.
Salary and allowances
  • Regulation of President and Members: The central government may make rules to provide for qualifications, appointments, salaries and allowances, resignation, removal and other conditions of service of the President /members.
  • Protection of Salary, Allowances, and Terms: Neither the salary and allowances nor the other terms and conditions of service of the President/member shall be varied to his disadvantage after his appointment.
Consumer Protection Jurisdiction: Pecuniary, Appellate, and Revisional Powers

  • Pecuniary Jurisdiction: Entertain complaints where the value of the goods/ services paid as consideration exceeds rupees 10 crores. 
    • Upto 2 Crores Now: The central government may prescribe such other values as it deems fit. Accordingly, this limit was reduced to above 2 crores in 2021.
  • Appellate Jurisdiction: Entertain appeals against the orders of any State Commission. The appeal may be made within 30 days from the date of the order of the State Commission. 
    • It may entertain an appeal filed after the expiry of 30 days if it is satisfied that there was sufficient cause for not filing the appeal within the given time. 
    • It also has jurisdiction to entertain appeals against the orders of the Central Consumer Protection Authority (CCPA). The appeal may be made within 30 days from the date of receipt of the order from the CCPA.
  • Revisional Jurisdiction: Jurisdiction to call for the records and pass appropriate orders in any consumer dispute that is pending before or has been decided by any State Commission in the following circumstances: 
    • State Commission has exercised a jurisdiction not vested in it by law, or
    • State Commission has failed to exercise jurisdiction so vested, or
    • State Commission has acted in the exercise of its jurisdiction illegally /with material irregularity.
Additional Powers and Processes in Consumer Protection Jurisdiction

  • May declare terms of contract null and void. If unfair to any customer.
  • Review of Orders: Power to review any of the orders passed by it, if there is an error apparent on the face of the record.
  • Remedy Against Ex-Parte Orders: Where an order is passed by the National Commission ex-parte, the aggrieved party may make an application to the Commission for setting aside such order.
  • Transfer of Pending Complaints: Transfer any complaint pending before the District Commission of one state to a District Commission of another state or before one State Commission to another State Commission either on the application of the complainant/ its motion.
  • Appeal Process: An appeal against the order of the National Commission lies with the Supreme Court.
    • Within 30 Days: The appeal can be made within 30 days from the date of the order of the National Commission. 
    • After Expiry of 30 Days: However, the Supreme Court may entertain an appeal filed after the expiry of 30 days if it is satisfied that there was sufficient cause for not filing the appeal within the given time.
Administrative Control

Administrative control over all the State Commissions in the following matters:

  • Performance in terms of their disposal of cases.
  • Investigation of allegations against the President/members of a State Commission and submitting inquiry reports to the concerned state government.
  • Guidelines for Uniform Procedures: Instructions regarding the adoption of uniform procedures in the hearing of matters; Prior service of copies of documents produced by one party to the opposite parties; Furnishing of the English translation of judgments written in any language; and Speedy grant of copies of documents.
  • Oversight Mechanisms: Overseeing the functioning of the State Commission or the District Commission either by way of inspection or by any other methods.
Central Consumer Protection Authority

  • The Consumer Protection Act, 2019 has come into force from 20th July, 2020
  • The Central Government shall, by notification, establish with effect from such date as it may specify in that notification, a Central Consumer Protection Authority to be known as the Central Authority.
  • As provided in section 10 of the Act, the Central Consumer Protection Authority (CCPA) has been established w.e.f. 24th July, 2020.
  • To regulate consumer rights violations, unfair trade practices, and misleading advertisements that harm public and consumer interests, and to promote and enforce consumer rights.
  • The Central Authority shall consist of a Chief Commissioner and such number of other Commissioners as may be prescribed, to be appointed by the Central Government.
  • The Central Authority will be headquartered in the National Capital Region of Delhi and can establish regional and other offices anywhere else in India.

State Consumer Disputes Redressal Commission

Composition
  • President + Not less than 4 or not more than such number of members as may be prescribed in consultation with the central government.
Appointment, Salary and allowances
  • The central government may make rules to provide for qualifications, appointments, salaries and allowances, resignation, removal and other conditions of service of the President /members.
  • Protection of Salary, Allowances, and Terms: The salary and allowances and the other terms and conditions of service of the President/member shall be kept the same to his disadvantage after his appointment.
Consumer Protection Jurisdiction: Pecuniary, Appellate, and Revisional Powers

  • Pecuniary Jurisdiction: Entertain complaints where the value of the goods/services paid as consideration, exceeds rupees 1 crores but doesn’t exceed 10 crores
    • The central government may prescribe such other values as it deems fit. Accordingly, this limit was reduced to above 50 lakhs but up to 2 crores in 2021.
  • Appellate Jurisdiction: Entertain appeals against the orders of any District Commission within the state. The appeal may be made within 45 days from the date of the order of the District Commission. 
    • It may entertain an appeal filed after the expiry of 45 days if it is satisfied that there was sufficient cause for not filing the appeal within the given time. 
  • Revisional Jurisdiction: Jurisdiction to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Commission within the state in the following circumstances: 
    • District Commission has exercised a jurisdiction not vested in it by law, or
    • District Commission has failed to exercise jurisdiction so vested, or
    • The District Commission has acted in the exercise of its jurisdiction illegally /with material irregularity.
Other Powers

  • May declare terms of contract null and void, If unfair to any customer.
  • Power to review any of the orders passed by it, if an error is apparent on the face of the record.
  • Transfer any complaint pending before the District Commission to another District Commission within the state either on the application of the complainant/ its motion.
  • Administrative control over all the District Commissions within its jurisdiction.

District Consumer Disputes Redressal Commission

Composition President + Not less than 2 or not more than such number of members as may be prescribed in consultation with the central government. 
Appointment, Salary and Allowances

  • Central Government Rules: The central government may make rules for qualifications/ procedures for appointments, recruitment methods, term of office, resignation, and removal of the President /members.
  • State Government Rules: The state government may make rules for salaries and allowances and other conditions of service of the President /members.
  • Procedure for Filling Vacancies: /In case of a vacancy in the office of the President/ member of a District Commission, the state government may direct-
    • Any other specified District Commission to exercise the jurisdiction in respect of the said district; 
    • The President/member of any other specified District Commission can exercise the power and discharge the functions of the President/ member of that District Commission also.
Jurisdiction

  • Entertain complaints where the value of the goods/ services paid as consideration does not exceed rupees 1 crores. 
    • Upto 50 Lakhs Now: The central government may prescribe such other values as it deems fit. Accordingly, this limit was reduced to up to rupees 50 lakhs in 2021.
  • Functioning and Location: Shall ordinarily function in the district headquarters. It may also perform its functions at other places in the district, as the state government may notify after consultation with the State Commission.
  • Review of Orders: Power to review any of the orders passed by it if there is an error apparent on the face of the record. 
    • This can be done by the Commission either of its own motion or on an application made by any of the parties within 30 days of such order.

Pecuniary Jurisdiction of the Consumer Commissions

Name Under 2021 Rules Under 2019 Act Under 1986 Act
District Commission Up to Rs. 50 lakhs Up to Rs . 1 crore Up to Rs . 20 lakhs
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

National Commission Above Rs. 2 crores Above Rs. 10 crores Above Rs. 1 crore

 

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