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STATE CONSUMER DISPUTES REDRESSAL COMMISSION

“INTERNSHIP PROJECT AND RESEARCH WORK”

SUBMITTED BEFORE - MADE BY-


Registrar ‘SCDRC’ SHIVESH RAJ JAISWAL
Ram Manohar Lohiya
National Law University
THE CONSUMER PROTECTION ACT, 1986: with special
reference to State Consumer Dispute Redressal Commission

“An Act to provide for better protection of the interests of consumers and for
that purpose to make provision for the establishment of consumer, councils
and other authorities for the settlement of consumer’s disputes and for
matters connected therewith.”

Consumer Protection Movement

The need of the human being in the primitive stage were just few with the sole aim to survive
in the hostile environment while living in forests and caves and continuing to lead a life
governed by the law of jungle. The flora and the fauna were the main sources of food. The
plants, the catch or the killing of animals were only for personal consumption. With the
passage of time people learnt to form social groups and knowledge dawned upon their
evolving consciousness to create and develop a social environment to make life more secure.
Initially every family had to provide for its own food and shelter and then people started
different occupations- farmers started producing wheat, while weavers started manufacturing
cloth and the blacksmith or carpenter started making tools of agriculture and husbandry. This
gave rise to the barter system whereby direct exchange or trade took place for goods
produced by one person with the goods required; which some other person could spare, e.g.,
the weaver having surplus cloth exchanged it with the farmer who had surplus wheat who
required cloth.

However with the increase in the volume of


trade and the increase in the production many difficulties were found in the barter system. It
was found that the exchange of goods and services could not take unless and until a person
required the same thing which the other person could spare the same article which the other
person demanded. It was difficult to store the goods and services for a long period and it was
also difficult to calculate the exact value of goods and services to be exchanged, e.g., how
would an employer pay for the services of his workers. Thus, the barter system, being
inconvenient, gave place to ‘the commonly accepted commodity’ known as money or
currency can be in the shape of a metal currency or a paper currency which is generally
accepted by the people as a medium of exchange or payment.

Right from the beginning the king or the Government kept the right to issue currency. The
metallic coins were alone used as money or currency till the 17th century. With the increase in
trade and commerce in the 18th century it was found that metallic coins were bulky and could
be lost easily and, therefore, a new type of paper currency was issued carrying undertaking by
words “I PROMISE TO PAY THE BEARER THE SUM OF……..RUPEES”. with the
expansion of the market system, the bank cheques, bank drafts and the traveller’s cheques
which are more safe are also being used frequently for the purchase of goods and services.
Recently credit cards and debit cards have replaced currency to make payments for goods and
services.

The industrial revolution and development in the international trade and commerce led to the
vast expansion of the business and trade, as a result of which variety of consumer goods have
appeared in the market to cater the requirements of the consumers and a host of services have
been made available to the consumers like insurance, transport, electricity, housing,
entertainment, finance and banking. A well-organized sector of manufacturers and traders
with better knowledge of markets have come into existence thereby affecting the relationship
between the suppliers of goods and services and the consumers making the principle of
consumer sovereignty almost inapplicable in the second half of the twentieth century. The
advertisements of the goods and services in the television, newspapers and magazines
influence the demand for the same by the consumers although there may be manufacturing
defect or imperfection or shortcoming in the quality, quantity and purity of the goods or there
may be deficiency in the services rendered. In addition, the production of the same item many
firms has led the consumers, who have little time to make selection, to think before they
could purchase the best. For the welfare of the public the glut of adulterous and sub-standard
articles in the market have to be checked. The participation of people is the only answer to
protect the consumers from the nefarious designs of the unscrupulous manufacturers and
traders.

Due to the international character of trade and industry- having well-organized and highly
professionalized producers and sellers on one hand and the illiterate and unorganized
consumers with little time to make selection on the other- the exploitation of consumers is
inevitable. The exploitation of the consumers cannot be avoided without the development of
international consumer protection movement. Various international organizations like the
International Labour Organisation (ILO), the World Health Organisation(WHO), the
Economic and Social Council of the United Nations (ECOSOC), United Nations Conference
on Trade and Development (UNICTAD) and United Nations International Children’s Fund
(UNICEF) have contributed a lot for the protection of the rights of the consumers in the
international sphere. In addition, the World Intellectual Property Organisation of Consumers
Union and the Inter-Scandinavian Committee on Consumer matters are also busy in
protecting interests of the consumers at the international level. The Inter-governmental
Working Group on the Code of Conduct of the Commission on Transnational Corporations at
its fourth session in March 1978 agreed upon the following measures relevant to the
consumer protection :-

(a) The transnational corporations should perform their operations in such a way that
does not cause dangers to the health and safety of consumers and they should
maintain consistent qualities of products.
(b) The transnational should disclose to the appropriate authorities of the countries, in
which they operate, the information relating to features of their products which are
directly related with the health and safety of the consumers.
(c) The transnational corporation should disclose the information relating to prohibitions,
restrictions, warnings and other regulatory measures imposed in other countries, on
grounds of health and safety protection, on products which they produce or market or
propose to market and on the processes which they use or propose to use in the
countries concerned.
(d) The transnational corporations should disclose to the public the necessary information
on the contents and the possible dangers or other adverse effects of the produce or
market in the countries concerned, by means of proper labeling, informative and non-
misleading advertising and other appropriate methods.
(e) The transnational corporations should disclose the appropriate information relating to
the experimental aspects and uses of products which they propose to use or market in
the countries concerned.
(f) The transnational corporation should co-operate with governments of the countries in
which they operate with a view to promote standards for the protection of the health
and safety of the consumers in relation to their production or marketing in the
countries concerned.
On the role of governments in safeguarding the interests of the consumers, the United
Nations Economic and Social Council (as per the report of the Secretary General on
Consumer Protection dated 27th May, 1983) has made the following recommendations:-

(1) The governments should develop or strengthen and implement a coherent consumer
protection policy taking into consideration the guidelines set out below. In doing so,
each government must see its own priorities for the protection of consumers, in
accordance with the economic and social condition of the country, keeping in view
the needs of its people, and bearing in mind the costs and benefits of the proposed
legislation.
(2) The legitimate needs which the guidelines are intended to secure are-
(a) The physical safety of the consumers and their protection from potential dangers;
(b) The protection of the economic interests of the consumers;
(c) The access of consumers to necessary information to make informed choices
according to individual wishes and needs;
(d) The consumer education;
(e) The availability of effective consumers redress; and
(f) The freedom to form consumers groups or organizations and the opportunity of
such organizations to be consulted.

(3) The government should provide adequate infrastructure including the establishment of
public bodies as well as financial facilities to develop, implement and monitor
consumer protection policies. The special care should be taken to ensure that
measures for consumer protection are implemented for the benefit of all sectors of the
population.

(4) The introduction of new products particularly in the developing countries must be
addressed in relation to local conditions and with due regard for the existing
production, distribution and consumption patterns of the country or region concerned.
(5) The Transnational corporations should conform to national and international
standards for consumer protection, including the pertinent provisions of the United
Nations Instruments.

The United Nations General Assembly has aptly described that taking into consideration the
interests and needs of consumers in all countries, particularly those in developing countries;
recognizing that consumers often face imbalances in economic terms, educational levels, and
bargaining power; and bearing in mind that consumers should have the right of access to non-
hazardous products; as well as the right to promote just, equitable and sustainable economic
and social development; the guidelines for consumer protection have the following
objectives:-

(a) To assist the countries in achieving or maintaining adequate protection for their
population as consumers;
(b) To facilitate production and distribution patterns responsive to the needs and desires
of consumers;
(c) To encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;
(d) To assist countries in curbing abusive business practices by all enterprises at the
national and international levels which adversely affect consumers;
(e) To facilitate the development of independent consumer groups;
(f) To further international co-operation in the field of consumer protection; and
(g) To encourage the development conditions which provide consumers with greater
choice at lower prices.

The cause giving rise to the consumer protection movement can be enumerated as:- (a) ever
increasing complexity of legislative controls; (b) the problem of innovation and development;
(c) the market informative gap; (d) the performance gap; (e) the location of the market (f) the
fiscal policy of the government; (g) population explosion (h) limited means to satisfy
unlimited wants; and (i) false and misleading publicity. As per the resolution of the United
Nations General Assembly dated 16th April, 1985, the following guidelines for consumer
protection were adopted:-

(a) There should be access to the consumers to information to make choices;


(b) There should be physical safety to the consumers;
(c) There should be protection of economic interests of the consumers;
(d) There should be measures to enable the consumers to obtain redress;
(e) There should be satisfactory production and performance standards;
(f) There should be adequate business practices;
(g) There should be system of distribution of essential goods;
(h) There should be international co-operation in the field of consumer protection.

In India after independence, we adopted the socialistic pattern of society, as is evident from
the preamble to the Constitution of India, which read as under:

“WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a
SOVEREIGN, SOCIALIST SECULAR DEMOCRATIC REPUBLIC and secure to all its
citizens:

JUSTICE, social, economic and political;

LIBERTY of thought, expression, belief, faith and worship;

EQUALITY of status and of opportunity;

and to promote among them all

FRATERNITY assuring the dignity of the individual and the unity and integrity of the
Nation.”

The constitution of India confers the Fundamental Rights on each and every person under
article 14, 20, 21, 22 and 25; on each and every citizen of India under Article 15, 16 and 19;
and on each and every community under article 17, 26 and 30. These fundamental rights are
enforceable and justifiable legal rights. On the other hands, the directive Principles of State
Policy enshrined in Part IV of the Constitution of India are fundamental in the governance of
the Country as laid down in Article 37 of the Constitution, which read as under:-

“The provision contained in this part shall not be enforceable by any court, but the principles
therein laid down are nevertheless fundamental in the governance of the country and it shall
be the duty of the State to apply these principles in making laws.”

The Fundamental Rights can be regarded as legal ends to be achieved by the state while the
directive Principles of the state policy can be said to be moral ends to be achieved by the
government. The directive Principles of State Policy are not enforceable in the Courts of law
because their fulfillment depends upon the resources available at the disposal of the
government. However, these Directive Principles can be described as sacred and inalienable
as they represent the policies and the programmes which the state should try to achieve. As
the Fundamental Rights impose a duty on the State not to violate them, the Directive
Principles of State Policy impose a corresponding duty on the state to apply them in making
the laws for the welfare of the people. The objectives given both in the Fundamental Rights
and in the Directive Principles of the State Policy are equally important and go together and
represent the kind of the society which we wish to create in India. One of the Directive
Principles of State Policy enshrined in Article 47 of the Constitution of India lays down as
under:

“The state shall regard the raising of the level of the nutrition and the standard of the living
of the people and the improvement of public health as among its primary duties and, in
particular, the state shall endeavor to bring about prohibition of the consumption, except for
medicinal purposes, of intoxicating drinks and of drugs which are injurious to health.”

“Social Welfare” means the well being of the society. When a person consumes goods and
services, he gets satisfaction or welfare from the same thought the welfare concepts differ
from person to person. A north Indian may get more welfare and satisfaction of tea than
coffee while a south Indian may get more utility or welfare from the consumption of coffee
then tea. Money enables people to buy goods and services for their enjoyment and, therefore,
it is correct to say that money or wealth is the means while the welfare or the utility is the
end. However, there may be goods and services which are deficient or which may be
injurious to the public health and may not yield utility or welfare to the consumers. And to
protect the consumers from the exploitation of traders and from adulterated and sub-standard
articles and for the better protection of the interests of consumers, the Consumer Protection
Act, 1986 has been enacted, which seeks, inter alia, to promote and protect the rights of the
consumers, such as-

(a) The right to be protected against the marketing of goods and services which are
hazardous to life and property;
(b) The right to be informed about the quality, quantity, potency, purity, standard and
price of goods or services, as the case may be, so as to protect the consumer against
unfair trade practices;
(c) The right to be assured, wherever possible, access to a variety of goods and services at
competitive prices;
(d) The right to be heard and to be assured that consumer’s interests will receive due
consideration at appropriate fora;
(e) The right to seek redressal against unfair trade practices or restrictive trade practices
or unscrupulous exploitation of consumers; and
(f) The right to consumer education.

However certain shortcomings were found with the implementation of the Act and to tackle
the same, the Consumer Protection (Amendment) Act, 1991 (Act No.34 of 1991) was enacted
in view of the decision of the National Consumer Disputes Redressal Commission regarding
passing of order under sub section(2) of section 14 of the Act which Provided inter alia:-

(a) To provide that every proceeding of the District Forum shall be conducted by the
President and at least one member thereof sitting together;
(b) That every order made by the District Forum shall be signed by its president and
member or members who conducted the proceeding;
(c) That where the proceeding is conducted by the president and a member of the
District Forum and they differ on any point or points, the same shall be referred to the
other member on such point or points and the opinion of the majority shall be the
order of the district forum;
(d) To validate the orders which have been signed by the President and one member of
the District Forum or the State Commission before amendment; and
(e) That in case of vacancy in the office of the president, the person who is qualified to be
appointed as President of the District Forum or the State Commission may be
temporarily appointed to hold such office.

Again to meet the expectations of the consumers and due to the shortcomings found in the
implementation of the consumer Protection Act, the Consumer Protection (Amendment) Act,
1993 (Act No.50 of 1993) was enacted to provide for the following:-

(a) To enlarge the scope of the consumer protection Act so as to enable the consumers to
file class actions complaints where such consumers have a common interest and to
file complaints relating to restrictive trade practices adopted by a trader;
(b) To enable the consumers who are self-employed to file complaints before the
redressal agencies where goods bought by them, exclusively for earning their
livelihood, suffer from any defect;
(c) To add ‘services’ relating to housing construction within the Ambit of the Act;
(d) To enable filing of class action complaints on behalf of group of consumers having
the same interest;
(e) To provide for the constitution of selection committees for the selection of non-
judicial members of various redressal agencies;
(f) To increase the monetary jurisdiction of District Fora/State Commission/National
Commission;
(g) To confer additional powers on the redressal agencies by way of awarding costs to the
parties, for ordering removal of defects or deficiency from the services, and for
empowering to recall of goods likely to endanger the safety of the public, etc;
(h) To impose punishment on the complainant in cases of frivolous or vexatious
complaints; and
(i) To provide for a limitation period of two years from the date the cause of action has
arisen for filing complaints.

With the passage of time, it was felt that there in need to further amend the Act and,
therefore, the consumer Protection (Amendment) Act, 2002 (62 of 2002) was enacted to
provide for the following:

(a) In case of death of the consumer, his legal heirs can be impleaded;
(b) The definition of words consumer, manufacturer, regulation restrictive trade practice,
unfair trade practices, service etc widened;
(c) Constitution of District Consumer Protection Protection Council introduced through
section 8A of the Act;
(d) Pecuniary jurisdiction of National Commission, State Commission and District Forum
enhanced;
(e) The fee for filing complaints in the consumer for a introduced;
(f) Procedure for admission of complaint and disposal of complaints expeditiously made;
(g) Consumer for a empowered to pass interim orders in pending complaints;
(h) Qualification for member of State Commission and District Forum amended;
(i) Provision made for deposit of a part of amount awarded at the time of filing the
appeal before appeal is entertained;
(j) Provision for enforcement of interim orders made in section 25 of the Act;
(k) Section 27 of the Act amended to provide for trial of offences by District Forum, State
Commission and National Commission; and
(l) Section 27A inserted to provide for appeal against orders passed under section 27 of
the Act;

THE STATE CONSUMER PROTECTION COUNCILS

(1) The state Government shall, by notification, establish with effect from such date as it
may specify in such notification, a Council to be known as Consumer Protection
Council for…….(hereinafter referred to as the State Council).
(2) The State Council shall Consist of the following members, namely:-

(a) The minister incharge of consumer affairs in the State Government who shall be
its Chairman;
(b) Such number of other official or non-official members representing such interests
as may be prescribed by the State Government.
(c) Such number of other official or non-official members, not exceeding ten, as may
be nominated by the Central Government.
(3) The State Council shall meet as and when necessary but not less than two meetings
shall be held every year.
(4) The state Council shall meet at such time and place as the Chairman may think fit and
shall observe such procedure in such regard to the transaction of its business as may
be prescribed by the State Government.

Section 7 of the Consumer Protection Act, 1986 makes provision for the establishment of the
State Consumer Protection Councils and for the meetings of the said councils and the
procedure in regard to the transactions of the business with the object to promote and protect
within state the rights of the consumers as laid down in clauses (a) to (f) of section 6 of the
Act.

Constitution of the State Consumer Protection Council-

Chapter II of the Consumer Protection Act, 1986, which came into force with effect from 15 th
day of April, 1987, envisages the establishment of the Consumer Protection councils both at
the Central, State and District level. In a country like India with ever-increasing population
and the demand for goods and services, with comparatively much less increase in the supply
of the same, the government intervention is necessary to protect the interests of the same, the
government intervention is necessary to protect the interests of the consumers. For this
purpose, section 7 of the Act provides that the State Government shall, by notification,
establish with effect such date as it may specify in such notification, a council to be known as
the Consumer Protection Council for….State with main object of promoting and protecting
the right s of the consumers.

Object of the State Council-

As per section 8 of the Act, the object of every State Consumer Protection Council shall be to
promote and protect within the state the rights of the consumer as such-

(a) The right to be protected against the marketing of goods and services which are
hazardous to life and property;
(b) The right to be informed about the quality, quantity, potency, purity, standard and
price of goods or services, as the case may be, so as to protect the consumer against
unfair trade practices;
(c) The right to be assured, wherever possible, access to a variety of goods and services
at competitive prices;
(d) The right to be heard and to be assured that consumer’s interests will receive due
consideration at the appropriate Fora;
(e) The right to seek redressal against unfair trade practices or restrictive trade practices
or unscrupulous exploitation of consumers; and
(f) The right to consumer education.

Composition of the State Commission.

16. (1) Each State Commission shall consist of—

(a) a person who is or has been a Judge of a High Court, appointed by the State
Government, who shall be its President:
[Provided that no appointment under this clause shall be made except after
consultation with the Chief Justice of the High Court;]
[(b) not less than two, and not more than such number of members, as may be
prescribed, and one of whom shall be a woman, who shall have the following
qualifications, namely :—
(i) be not less than thirty-five years of age;
(ii) possess a bachelor’s degree from a recognised university; and
(iii) be persons of ability, integrity and standing, and have adequate knowledge
and experience of at least ten years in dealing with problems relating to
economics, law, commerce, accountancy, industry, public affairs or
administration :

Provided that not more than fifty per cent of the members shall be from amongst
persons having a judicial background.
Explanation.—For the purposes of this clause, the expression “persons having
judicial background” shall mean persons having knowledge and experience for at
least a period of ten years as a presiding officer at the district level court or any
tribunal at equivalent level :
Provided further that a person shall be disqualified for appointment as a member if
he—

(a) has been convicted and sentenced to imprisonment for an offence which, in
the opinion of the State Government, involves moral turpitude; or
(b) is an un-discharged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a
body corporate owned or controlled by the Government; or
(e) has, in the opinion of the State Government, such financial or other interest,
as is likely to affect prejudicially the discharge by him of his functions as a
member; or
(f) has such other disqualifications as may be prescribed by the State
Government.]
[(1A) Every appointment under sub-section (1), shall be made by the State Government on
the recommendation of a Selection Committee consisting of the following members,
namely:—

(i) President of the State Commission—Chairman;


(ii) Secretary of the Law Department of the State—Member;
(iii) Secretary in-charge of the Department dealing with Consumer Affairs in the State—
Member :
Provided that where the President of the State Commission is, by reason of absence or
otherwise, unable to act as Chairman of the Selection Committee, the State Government
may refer the matter to the Chief Justice of the High Court for nominating a sitting Judge of
that High Court to act as Chairman.

(1B)(i) The jurisdiction, powers and authority of the State Commission may be exercised by
Benches thereof.

(ii) A Bench may be constituted by the President with one or more members as the President
may deem fit.

(iii) If the members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the Members are
equally divided, they shall state the point or points on which they differ, and make a
reference to the President who shall either hear the point or points himself or refer the case
for hearing on such point or points by one or more or the other members and such point or
points shall be decided according to the opinion of the majority of the members who have
heard the case, including those who first heard it.]

(2) The salary or honorarium and other allowances payable to, and the other terms and
conditions of service [* * *] of, the members of the State Commission shall be such as may
be prescribed by the State Government :

[Provided that the appointment of a member on whole-time basis shall be made by the State
Government on the recommendation of the President of the State Commission taking into
consideration such factors as may be prescribed including the work load of the State
Commission.]

[(3) Every member of the State Commission shall hold office for a term of five years or up
to the age of sixty-seven years, whichever is earlier:

Provided that a member shall be eligible for re-appointment for another term of five years
or up to the age of sixty-seven years, whichever is earlier, subject to the condition that he
fulfils the qualifications and other conditions for appointment mentioned in clause (b) of
sub-section (1) and such re-appointment is made on the basis of the recommendation of the
Selection Committee:
Provided further that a person appointed as a President of the State Commission shall also
be eligible for re-appointment in the manner provided in clause (a) of sub-section (1) of this
section :

Provided also that a member may resign his office in writing under his hand addressed to
the State Government and on such resignation being accepted, his office shall become
vacant and may be filled by appointment of a person possessing any of the qualifications
mentioned in sub-section (1) in relation to the category of the member who is required to be
appointed under the provisions of sub-section (1A) in place of the person who has resigned.

(4) Notwithstanding anything contained in sub-section (3), a person appointed as the


President or as a member, before the commencement of the Consumer Protection
(Amendment) Act, 2002, shall continue to hold such office as President or member, as the
case may be, till the completion of his term.]

Original Jurisdiction of State Commission to entertain Complaints-


‘Jurisdiction’ means authority to decide. Where a quasi judicial authority has jurisdiction to
decide a matter, it does not lose its jurisdiction to decide a matter, it does not lose its
jurisdiction by coming to a wrong conclusion, whether it is wrong in law or in fact. The
question whether a tribunal has jurisdiction depends not on the truth or the falsehood of the
fact into which it has to enquire, or upon the correctness of its findings on these facts into
which it has to enquire, or upon the correctness of its findings on, but upon their nature, and
it is determinable at the commencement, not at the conclusion of the enquiry. 1 The term
“Original Jurisdiction” of the State Commission means the extent, both territorial as well as
pecuniary, within which the State Consumer Dispute Redressal Commission has the power
and authority to adjudicate upon a complaint under the Consumer Protection Act. Earlier the
complaint could be instituted in a State Commission where the value of the goods and
services and compensation, if any, claimed exceeded rupees one lakh but did not exceed
rupees Ten Lakh; whereas by virtue of section 14 of the Consumer Protection
(Amendment) Act, 1993 (50 of 1993), the pecuniary jurisdiction of the State Commission
has been enhanced to a claim exceeding rupees twenty lakhs but which does not exceed
rupees 20 lakhs. Again by the virtue of the Consumer Protection Act (Amendment) Act 62
of 2002 the pecuniary jurisdiction of the State Commission to entertain original complaints
has been enhanced from Rs. 20 lakhs to Rs. 1 crore w.e.f15th March 2003.

1
Rex v. Boltan, (1841) 1QB 66 (74) as referred with approval in Ujjam Bai v. State of Uttar Pradesh, AIR 1962
SC 1621 (1629).
Subject to the other provisions of this Act, the State Commission shall have the jurisdiction
to entertain complaints where the value of the goods or services and compensation, if any
claimed exceeds rupees twenty lakhs but does not exceed rupees one crore and such a
complaint shall be instituted in a State Commission within the local limits of whose
jurisdiction-

(a) The opposite party or each of the opposite parties, where there are more than one, at the
time of the institution of the complaint actually and voluntarily resides or carries on
business or has a branch office, or personally works for gain; or
(b) Any of the opposite parties, where ther are more than one, at the time of the institution
of the complaint, actually and voluntarily resides, or carries on business, or has a branch
office, or personally works for gain, provided that in such case either the permission of
the State Commission is given, or the opposite parties who do not reside, or carry on
business or have a branch office or personally works for gain, as the case may be,
acquiesce in such institution; or
(c) The cause of action, wholly or in part, arises.

Appellate Jurisdiction of the State Commission-


On the appellate side, the state Commission has the jurisdiction to entertain appeals against
the orders of any District Forum within the state and any person aggrieved by an order made
by the District Forum may prefer an appeal against such order to the State Commission.
Under section 15 of the Act, such an appeal can be preferred by any person aggrieved by an
order within a period of thirty days from the date of order with the proviso that the State
Commission may entertain an appeal after the expiry of the said period of 30 days, it is
satisfied that there was sufficient cause for not preferring it within that period. However, for
the condonation of delay, each day’s delay must be explained satisfactorily. Where the
statutory time limit of 30 days for preferring an appeal before the State Commission had
expired more than two years prior to the date on which the memorandum of appeal was
presented before the State Commission and it was not even accompanied with any
application for condonation of delay, it has been held that the mode of disposal of the appeal
by the State Commission has been very perfunctory and as a result thereof ther has been a
serious miscarriage of justice because the State Commission has no jurisdiction to entertain
the belated appeal without first condoning the delay and to interfere with the order passed by
the District Forum.2

For entertaining an appeal under the Consumer Protection Act, it is necessary that the
certified copy of the order of the District Forum appealed against should be filed with the
memorandum of appeal. As the appellant has not filed the certified copy of the order of the
District Forum, the appeal is not a proper appeal in the eyes of law and is liable to be
dismissed on this short ground.3 The right of appeal under section 15 of the Act and the
appellate powers of the state Commission under section 17 of the Act follows section 14 of
the Act, therefore, the State Commission has the power to entertain the appeals against the
orders passed by the District For a within the State under section 14 of the Act. Whether an
appeal against the interlocutory order is maintainable? The answer to this question is in
affirmative, because under section 15 of the Act, any person aggrieved by an order made by
the District Forum may prefer an appeal against such order to the State Commission, An
order implies not only final order passed under section 14 of the Act, but any other order by
which that party is aggrieved. However, the Rajasthan State Consumer Redressal
Commission treated the appeal against the interlocutory order as a revision under section
17(b) of the consumer Protection Act.4

There is no provision for reviewing an order passed by the District Forum under the
Consumer Protection Act. After passing the order the District Forum has become functus
officio so far as the complaint was concerned and, thus, no appeal lay against the order which
was passed in the review application but revision against such an order can be entertained by
the State Commission.5 The jurisdictional objections have to be raised at the threshold at the
trial before the District Forum, and it cannot be allowed to be raised at the belated stage of
the appeal proceedings after the issue had turned against the party on merits.6 Where the plea
was not taken in the counter filed by the opposite parties before the District Forum, the
parties cannot be allowed to take such a new plea for the first time in the appeal before the
State Commission.7 When the appeal was dismissed in default, the proper remedy was to
seek to get the previous appeal restored, but the appellant could not file another appeal

2
S.Parkash v. S.D.O. (Phones),II (1992) CPJ 406 (NC): 1992 (II) CPR 116.
3
Municipal Corporation of Delhi (W.D.& D.V) v. Narinder Kumar Rohatgi, II (1993) CPJ 811 (Del): 1993 (I)
CPR 654.
4
Telecom District Engineer v. Maha Bherav Dyeing Co.,I (1994) CPJ 19 (Raj).
5
Jiapur Stock Exchange Limited, Jaipur v. C.P Mehta, II (1991) CPJ 51 (Raj).
6
H.S.E.B v. Luxman Singh, II (1993) CPJ 1107 (Har).
7
Vice Chairman and Housing Commission, A.P v. T. Satyanarayan Murthy, II (1993) CPJ 1187 (AP): 1992 (I)
CPR 432.
against the same order with another application for condonation of delay. Therefore, the
second appeal is not at all maintainable and the State Commission has no jurisdiction to
entertain such second appeal.8

Revisional Jurisdiction of the State Commission-


In its revisional jurisdiction, the state Commission has the 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 Forum within the State, where it appears to the State Commission
that-

(a) The District Forum has exercised a jurisdiction not vested;or


(b) The District Forum has failed to exercise a jurisdiction so vested; or
(c) The district Forum has acted in exercise of its jurisdiction illegally; or
(d) The District Forum has acted in exercise of its jurisdiction with material irregularity.

Therefore, the State Commission has the power of revision only in above four cases under
clause (b) of section17 of the Consumer Protection Act. The power of revision of the High
Court under section 115 of the Civil Procedure, 1908 lays down as under:

“115. Revision—

(1) The High Court may call for the record of any case which has been decided by any
court subordinate to such High Court and in which no appeal lies thereto, and if such
subordinate court appears-

(a) To have exercised a jurisdiction not vested in it by law; or


(b) To have failed to exercise a jurisdiction so vested; or
(c) To have acted in the exercise of its jurisdiction illegal or with material irregularity,
The high court may make such order in the case as it thinks fit;
Provided that the High Court shall not, under this section, vary or reverse any order
made, or any order deciding an issue, in the course of a suit or the proceeding, except
where-
(a) The order, if it had been made in favour of the party applying for revision, would
have finally disposed of the suit or the proceeding; or
(b) The order, if allowed to stand, would occasion a failure of justice or cause
irreparable injury to the party against whom it was made.

8
Ishar Das v. Vinay Kumar Gupta, I (1992) CPJ 118 (NC): 1992 (I) CPR 432.
(2) The High Court shall not, under this section, vary or reverse any decree or order
against which an appeal lies either to the High Court or to any court subordinate
thereto.

In this section, the expression ‘in any case which has been decided’ includes any
order made, or any order deciding an issue, in the course of a suit or other
proceeding.”

The perusal of the above provisions of revision in section 17(b) of the Consumer
Protection Act vis-a vis Section 115 of the code of Civil Procedure reveals that the
power of the State Commission to exercise the power of revision is wider than the
power of the High Court under section 115 of the Code of Civil Procedure. The State
Commission, under section 17(b) of the Consumer Protection Act may call for the
records and may pass appropriate orders in any consumer dispute which is pending
before or has been decided by any district Forum within the State, whereas the High
Court under section 115 of the Code of Civil Procedure, may call for the record of
any case which has been decided by any court subordinate to it which includes any
order made or any order deciding an issue, I n the course of a suit or other
proceeding, in which no appeal lies thereto. Moreover, the proviso to section 115 of
the Code of Civil Procedure has not been incorporated under section 17(b) of the
Consumer Protection Act. Where there is no error of jurisdiction or illegal exercise of
jurisdiction by the Consumer Forum, the Commission should decline to entertain the
revision petition.

Under section 17(b) of the Consumer Protection Act, the jurisdiction of the State
Commission in revision is severely limited. Similarly under section 21(b) of the Act,
the jurisdiction of the National Commission in revision is severely limited. The
national Commission can call for records and pass appropriate orders in any
consumer dispute decided by the State Commission where the State Commission has
exercised a jurisdiction not vested in it by law or has failed to exercise a jurisdiction
so vested or has acted in the exercise of its jurisdiction illegally or without material
irregularity. In other words, the jurisdiction of the State Commission and the National
Commission, in revision, if limited to disputes where there has been wrongful, illegal
and improper exercise of jurisdiction or failure to exercise jurisdiction.9 Where there
is no error of jurisdiction or illegal exercise of jurisdiction by the consumer forum,

9
Telecom District Magistrate, Patna v. Kalyanpur Cement Ltd.,II (1991) CPJ 286 (NC).
the commission declined to entertain the revision petition.10 The appellate court
declined to go into the correctness or otherwise of the exercise of discretion by the
State Commission in the matter of condonation of delay in a complaint under the
Consumer Protection Act because that, being a question invoking a jurisdiction, there
is no scope for interference by the appellate authority in such matter. 11 When revision
petition does not involve any question of jurisdiction, there is no scope for
interference by the Commission with the orders passed in exercise of its revisional
powers.

10
Kuldip Singh Kalra v. Roshan Lal Pal, II (1993) CPJ 170 (171) (NC).
11
Rajasthan State Road Transport Corporation v. Dunger Chand, I (1995) CPJ 37 (SC).

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