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STATE COMMISSION[1]

Table of Contents

QUESTION BANK

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

SHORT NOTES

State Commission.

SYNOPSIS

COMPOSITION OF STATE COMMISSION (S. 16).

(1) COMPOSITION.

(2) Method of appointment:-

(3) Salary and allowances S. 16 (2):-

(4) Terms of office (S. 16 (3)):-

III. JURISDICTION OF THE STATE COMMISSION (S. 11):-

(1) Pecuniary Jurisdiction:-

(2) Appellate Jurisdiction:-

(3) Revisional Jurisdiction:-

III. PROCEDURE APPLICABLE TO STATE COMMISSION (S. 18):-

APPEALS (S. 19):-

I. COMPOSITION OF STATE COMMISSION (S. 16).

(1) COMPOSITION-

Each State Commission shall consist of the following (S. 16 (1))-

a) A person who is, or has been, a Judge of the High Court. He shall be appointed by the State Government and 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) two 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:-

Every appointment made under this clause shall be made by the State Government on the recommendation of a Selection Committee consisting of the following namely-

a) The President of the State Commission- Chairman (of the selection committee).
b) Secretary, Law Department of the State- Member (of the selection committee).
c) Secretary in charge of the Department, dealing with consumer affairs in the State – Member (of the selection committee)

The Selection Committee consists of one chairman and two members who make recommendations to the State Government regarding the appointment for the post of President and Members of the State Commission.

(3) Salary and allowances S.16 (2):-

The salary or honorarium and other allowances payable to, and other terms and conditions of service of the members of the District Forum shall be as prescribed by the State Government.

(4) Terms of office (S.16 (3)):-

Every member of the State Commission shall hold office for a term of five years or up to the age of 67, whichever is earlier, and shall not be eligible for reappointment.

II. JURISDICTION OF THE STATE COMMISSION (S. 11):-

The State Commission shall have jurisdiction in the following matters-

(1) Pecuniary Jurisdiction:-

The commission shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed exceed twenty lakhs but do not exceed one crore.

(2) Appellate Jurisdiction:-

The State Commission entertains appeals against the orders of any District Forum within the State.

In M/s Megacity Builders V/s. A. P. State Commission[2]

Facts– The trader against whom the District Forum had made an order failed to comply with it. Therefore, the District Forum imposed punishment on him.

Issue– Can such punishment be interfered with by the State Commission?

Held– The State Commission could only interfere with an order of a District Forum if there is any jurisdictional error. The imposition of a fine as punishment by the District Forum was within its jurisdiction. Hence, interference could not be made.

(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 District Forum within the State. Such power can be exercised where it appears to the State Commission that such District Forum 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.

III. PROCEDURE APPLICABLE TO STATE COMMISSION (S. 18):-

The provisions of S.12, 13, and 14 and the rules made thereunder for the disposal of complaints by the District Forum shall, with such modification as may be necessary, be applicable to the disposal of disputes by the State Commission.

IV. APPEALS (S.19):-

Any person aggrieved by an order made by the State Commission in the exercise of its jurisdiction may prefer an appeal against such order to the National Commission. Such appeal shall be made within a period of 30 days from the date of the order. The national commission may, however, entertain an appeal after the expiry of the said period of 30 days if it is satisfied that there was sufficient cause for not filing an appeal within 30 days.

In Angad Electronics V/s. Chandra Shekhar[3]

Facts—An appeal was filed before the State Commission, which dismissed the complaint for the complainant’s default. The applicant filed a writ petition to the Supreme Court.

Held—The petitioner has the remedy of applying before the State Commission for restoration of appeal within one month or appealing against such order within 30 days to the National Commission but not filing a Writ Petition.

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[1] राज्य आयोग [राज्य आयोग]

[2] (AIR 2004 AIR 49)

[3] (AIR 2002 M.P. 129)