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STATE COMMISSION
QUESTION BANK
Q.1. Discuss briefly the composition and jurisdiction of the “State Commission” under the Consumer Protection Act, 2019.
Q.2. "Discuss the composition, powers, and jurisdiction of the State Commission under the Consumer Protection Act, 2019."
Q.3. Compare the jurisdiction and powers of the State Commission under the Act of 1986 vs. the Act of 2019.
SHORT NOTES
1. State Commission.
SYNOPSIS
I. Composition of the State Commission (Section 42)-
II. Method of Appointment (Section 43)-
IV. Jurisdiction of the State Commission (Section 47)
1. Pecuniary Jurisdiction
2. Appellate Jurisdiction
3. Revisional Jurisdiction
4. Review Power (Section 50)-
V. Procedure (Sections 48 and 49)-
VI. Appeals to National Commission (Section 51)-
VII. Comparison between CPA, 1986, and CPA, 2019, so far State Commission is concerned.
THE STATE CONSUMER DISPUTES REDRESSAL COMMISSION
I. Composition of the State Commission (Section 42)-
Section 2 (44) defines "State Commission" means a “State Consumer Disputes Redressal Commission established under sub-section (1) of section 42”;
As per S. 42, each State Commission shall be established by the State Government and consist of:
- The President: A person who is or has been a Judge of the High Court, appointed by the State Government in consultation with the Chief Justice of that High Court.
- Members: Not less than four members or such number of members as may be prescribed.
Qualifications: Candidates must possess ability, integrity, and standing, with specialised knowledge and at least 10 years of experience in consumer affairs, law, public affairs, administration, economics, or commerce. At least one member must be a woman.
II. Method of Appointment (Section 43)-
The State Government appoints the President and members based on the recommendations of a Selection Committee.
Note: Under the 2019 Rules, the Central Government has gained more influence over the qualifications and appointment process to ensure uniformity across states.
III. Terms and Conditions of Service (Section 44)
Tenure: The President and members hold office for a term of five years or until they reach the age limit, whichever is earlier.
Age Limits: The age limit for retirement for the President and members is 67 years.
Reappointment: Members are eligible for reappointment for another term of four years, subject to the age limit.
IV. Jurisdiction of the State Commission (Section 47)
1. Pecuniary Jurisdiction
The State Commission has the power to entertain complaints where the value of the goods or services paid as consideration exceeds â‚ą 50 lac but does not exceed â‚ą2 Crore.
2. Appellate Jurisdiction
It entertains appeals against the orders of any District Commission located within the State.
3. Revisional Jurisdiction
The State Commission may call for records and pass orders in any consumer dispute pending before or decided by a District Commission if it appears that the District Commission has:
a. Exercised jurisdiction not vested in it by law.
b. Failed to exercise vested jurisdiction.
c. Acted with material irregularity or illegality.
The ratio of the following judgment, so far, revision of the District Form (Presently District Commission) under the Consumer Protection Act, 1986, still applies under the 2019 CPA.
In M/s Megacity Builders V/s. A. P. State Commission
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.
4. Review Power (Section 50)-
The State Commission now has the power to review its own orders if there is an error apparent on the face of the record.
V. Procedure (Sections 48 and 49)-
The State Commission follows the same summary procedure as the District Commission (Sections 35 to 39). This includes the power to:
1. Refer disputes to Mediation (a new feature of the 2019 Act).
2. Issue interim orders.
3. Proceed ex-parte if the opposite party fails to appear.
VI. Appeals to National Commission (Section 51)-
Any person aggrieved by an order of the State Commission may appeal to the National Commission within 45 days from the date of the order.
Pre-deposit: To file an appeal, the appellant must deposit 50% of the amount awarded by the State Commission.
In Angad Electronics vs. Chandra Shekhar
The Supreme Court reaffirmed the "Exhaustion of Remedies" doctrine. According to it, a party cannot jump to the High Court or Supreme Court via a Writ Petition if a specific statutory remedy (like an appeal to the National Commission or an application for restoration) is available under the Consumer Protection Act.
VII. Comparison between CPA, 1986, and CPA, 2019, so far State Commission is concerned.
The 2019 Act was designed to modernise the legal framework to handle e-commerce, simplify the filing process, and provide stricter penalties for non-compliance. The CPA, 2019, has brought the following major changes to the State Commission compared to the CPA, 1986.
Feature | CPA, 1986 | CPA, 2019 |
Pecuniary Jurisdiction | Entertained complaints where the value of goods/services was between â‚ą20 Lakh and â‚ą1 Crore. | Entertained complaints where the value of goods/services is between â‚ą50 lac to â‚ą 2 Crore. |
Basis of Valuation | Based on the value of goods/services plus the compensation claimed. | Based strictly on the consideration paid for the goods or services. |
Territorial Jurisdiction | Cases filed where the opposite party resides or carries out business. | Added flexibility: Consumers can also file where they reside or personally work. |
Selection Committee | A selection committee (including a High Court Judge) recommended members. | No selection committee; the Central Government now notifies rules for qualifications and appointments. |
Composition | Headed by a President (HC Judge) and at least two members. | Headed by a President and at least four members (or more as prescribed). |
Mediation Cell | No specific provision for legal mediation within the commission. | Provision to refer cases to Mediation Cells if both parties agree to a settlement. |
Review Power | The State Commission did not have the power to review its own orders. | The State Commission can now review its own orders if there is an error on the face of the record. |
Appeals | Appeals against State Commission orders went to the National Commission (NCDRC). | Same, but the pre-deposit amount for filing an appeal has been increased. |
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Reference-
1. State Consumer Redressal Commission
https://grahak.maharashtra.gov.in/en/
2. State / District Consumer Disputes Redressal Commission
https://mahafood.gov.in/en/consumer-club-scheme/
3. National Consumer Day and Consumer Commissions in India
4. Centre notifies rules for Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1786342®=3&lang=2
5. Book on CONSUMER PROTECTION RIGHTS, By Bhatt & Joshi Associates
6. GUIDE TO CONSUMER PROTECTION ACT, 2019
https://cdn.taxmann.com/BookshopFiles/bookfiles/1764247775443_9789371265539_content.pdf