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NATIONAL COMMISSION[1]

Table of Contents

QUESTION BANK

Q.1. Discuss briefly the composition and jurisdiction of the “National Commission” under the Consumer Protection Act.

SHORT NOTES

National Commission

SYNOPSIS

COMPOSITION OF NATIONAL COMMISSION (S. 20).

(1) COMPOSITION.

(2) Method of appointment:-

(3) Salary and allowances (S. 20 (2)):-

(4) Terms of office (S. 20 (3)):-

III. JURISDICTION OF THE NATIONAL COMMISSION (S.21):-

(1) Pecuniary Jurisdiction:-

(2) Appellate Jurisdiction:-

(3) Revisional Jurisdiction:-

III. POWERS OF AND PROCEDURE APPLICABLE TO NATIONAL COMMISSION (S. 22):-

APPEALS (S. 23):-
FINALITY OF ORDER (S. 24):-
ADMINISTRATIVE CONTROL (S. 24 B):-

NOTES

(1). WRIT JURISDICTION.

(2) EXECUTION OF ORDERS (S. 25).

I. COMPOSITION OF NATIONAL COMMISSION (S.20)-

(1) COMPOSITION.

The National Commission shall consist of the following (S. 20 (1))-

a) A person who is, or has been, a Judge of the Supreme Court. The Central Government shall appoint him and shall be its President. Provided that no appointment under this clause shall be made except after consultation with the Chief Justice of India.
b) four other members, who shall be persons of ability, integrity, and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration, one of whom shall be a woman.

(2) Method of appointment:-

The Central Government shall make every appointment made under this clause on the recommendation of a Selection Committee consisting of the following namely-

a) A judge of the Supreme Court, to be nominated by the Chief Justice of India- Chairman (of the selection committee).
b) Secretary in the Department of Legal Affairs in the Government of India- Member (of the selection committee).
c) Secretary of the Department dealing with consumer affairs in the Government of India – Member (of the selection committee).

(3) Salary and allowances (S. 20 (2):-

The salary or honorarium and other allowances payable to and other terms and conditions of service of the National Commission members shall be as prescribed by the Central Government.

(4) Terms of office (S. 20 (3)):-

Every member of the National Commission shall hold office for a term of five years or up to the age of 70, whichever is earlier, and shall not be eligible for reappointment.

II. JURISDICTION OF THE NATIONAL COMMISSION (S.21):-

The National Commission shall have jurisdiction in the following matters-

(1) Pecuniary Jurisdiction:-

National Commission shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceed rupees one Crore.

(2) Appellate Jurisdiction:-

To entertain appeals against the orders of any State Commission.

(3) Revisional Jurisdiction:-

It can call for records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission. Such power can be exercised where it appears to the National Commission that such State Commission has exercised a jurisdiction – (a) not vested in it by law, or (b) has failed to exercise a jurisdiction so vested, or (c) has acted in exercise of its jurisdiction illegally or with material irregularity.

In Synoco Industries V/s. State Bank of Bikaner[2]

The Supreme Court held that the National Commission cannot entertain claims requiring detailed evidence, and a civil suit is the proper remedy.

III. POWERS OF AND PROCEDURE APPLICABLE TO NATIONAL COMMISSION (S.22):-

In the disposal of any complaints or proceedings before it, the National Commission shall have the following powers-

(1) The power of the Civil Court.

(2) The power to issue an order to the opposite party directing him to do any one or more of the things referred to in clause (a) to (i) of Sub-Section (1) of S. 14.

IV. APPEALS (S.23):-

An appeal against the order of the National Commission can lie to the Supreme Court. Such an appeal can be only in respect of powers exercised by the National Commission under S.21 (a) Sub Clause (i), i.e., when the National Commission is exercising original jurisdiction in respect of complaints which the value of the goods or services and compensation if any, claimed exceed Rs 20 lakhs. An appeal to the Supreme Court can be made within a period of 30 days from the date of the order of the National Commission. However, the Supreme Court may entertain an appeal after the expiry of 30 days if it is satisfied that there was sufficient cause for not filing the appeal within the above-mentioned time limit.

V. FINALITY OF ORDER (S.24):-

Where no appeal has been filed against the order of the District Forum, State Commission, or National Commission, the same shall be final.

VI. ADMINISTRATIVE CONTROL (S.24 B):-

The Consumer Protection (Amendment) Act 1993 has inserted S. 24 (B). It envisages administrative control of the National Commission over the State Commission and that of the State Commission over the District Forum.

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NOTES

(1). WRIT JURISDICTION:-

The writ jurisdiction of the Supreme Court under Art.32 of the Constitution is limited because it can only be invoked to enforce fundamental rights. At the same time, the writ jurisdiction of the High Court under Art.226 of the Constitution is wide since it can be invoked to enforce fundamental and ordinary legal rights.

However, under the Consumer Protection Act, the High Court is not a statutory, appellate, or revisional authority. An appeal from the District Forum’s order lies with the State Commission, from the State Commission’s order to the National Commission, and from the National Commission’s order to the Supreme Court.

Does the question arise whether the High Court’s writ jurisdiction can resort to consumer dispute matters?

In Padmanabhan V/s. Consumer Dispute Redressal Forum[3]

Kerala High Court held- that remedy under Art.226 of the Constitution could be resorted to only in the absence of alternate efficacious remedies. The Consumer Protection Act provides efficacious alternative remedies in consumer disputes; the writ petition under Art. 226 of the Constitution would not lie for such remedies. Moreover, the Act has provided proper machinery for the appeal to the Supreme Court.

However,

In Calcutta Metropolitan Development Authority V/s Union of India[4]

The Calcutta High Court held contrary to the above judgment and observed that ‘an alternative remedy is not an absolute bar to invoke jurisdiction of the High Court under Art.226 of the Constitution. High Court can decide the question of law in such matters.

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(2) EXECUTION OF ORDERS (S.25):-

Every order made by the District Forum, the State Commission, or the National Commission may be enforced by the District Forum, the State Commission, or the National Commission, as the case may be, in the same manner as if it were a decree or order made by a Court in a suit pending therein. It shall also be lawful for the District Forum, the State Commission, or the National Commission to send, in the event of its inability to execute, such order to the Court within the local limits of whose jurisdiction-

(a) in the case of an order against a company, -the registered office of the company is situated or

(b) in the case of an order against any other person- the place where the person concerned voluntarily resides or carries on business or personally works for gain, and thereupon, the Court to which the order is so sent shall execute the order as if it were a decree or order sent to it for execution.

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[1] केंद्रीय आयोग [केंद्रीय आयोग]

[2] (AIR 2002 SC 568)

[3] (1991) 2 CPR 505

[4] (1993) 2 CPR 505