(..17..)
NATIONAL COMMISSION
QUESTION BANK
Q.1. Discuss briefly the composition and jurisdiction of the “National Commission” under the Consumer Protection Act, 2019.
Q.2. Discuss the composition of the National Commission. Who is eligible to be appointed as the President?
Q. 3. What is the pecuniary jurisdiction of the National Commission under CPA 2019? How does it differ from the 1986 Act?
Q.4. The National Commission is not just a trial forum but an appellate body." Explain with reference to the hierarchy of consumer commissions.
SHORT NOTES
National Commission
SYNOPSIS
I. COMPOSITION OF NATIONAL COMMISSION (S. 53, 54 and 55)
(1) Meaning and Composition (S. 53)-
(2) Method of Appointment
(3) Salary, Allowances, and Conditions (S. 55)-
(4) Term of Office (S. 55)-
II. JURISDICTION OF THE NATIONAL COMMISSION (S. 58)-
(1) Pecuniary Jurisdiction-
(2) Appellate Jurisdiction-
(3) Revisional Jurisdiction-
III. POWERS AND PROCEDURE (S. 59 & 61)-
IV. APPEALS (S. 67)
V. FINALITY OF ORDERS (S. 68)
VI. ADMINISTRATIVE CONTROL (S. 70)-
VII. The changes brought by CPA, 2019, in CPA, 1986.-
- Shift in Pecuniary Jurisdiction:
- Revised Basis of Valuation:
- Introduction of Review Power:
- Authority Over Unfair Contracts:
- Extension of Appeal Limitation:
- Stricter Pre-deposit Requirements:
- Institutionalised Mediation:
- Centralised Selection Process:
- Enhanced Enforcement and Penal Powers:
- Modernisation through E-filing:
- Eligibility for Reappointment:
I. COMPOSITION OF NATIONAL COMMISSION (S. 53, 54 and 55)
(1) Meaning and Composition (S. 53)-
As per S. 2 (29) the National Commission means “the National Consumer Disputes Redressal Commission established under sub-section (1) of section 53”.
As per S. 53 (1), the Central Government shall, by notification, establish a National Consumer Disputes Redressal Commission, to be known as the National Commission.
34 of 2006.
The National Commission (NCDRC) shall consist of:
President: A person who is or has been a Judge of the Supreme Court or a Chief Justice of a High Court.
Members: Not less than four members and such number of members as may be prescribed. The candidates should have 10 years of experience in the prescribed field to be eligible for membership. At least one member must be a woman.
(2) Method of Appointment
Under the 2019 Act, appointments are made by the Central Government upon the recommendation of a Search-cum-Selection Committee.
Chairman: Chief Justice of India or a Judge of the Supreme Court nominated by him.
Members:
a. Secretary to the Govt. of India (Department of Consumer Affairs).
b. Two experts of repute (in fields like Law, Public Affairs, or Administration).
(3) Salary, Allowances, and Conditions (S. 55)-
The salary, allowances, and other terms of service are governed by the Consumer Protection (Qualification, remuneration and other conditions of service, etc.) Rules, 2020.
(4) Term of Office (S. 55)-
The term of office for the President is 5 years or up to the age of 70 years, whichever is earlier.
The term of office for Members is 5 years or up to the age of 67 years, whichever is earlier.
Reappointment: Unlike the previous act, members are now eligible for reappointment for another term of 5 years, subject to the age limits.
II. JURISDICTION OF THE NATIONAL COMMISSION (S. 58)-
(1) Pecuniary Jurisdiction-
This has seen the most significant change. As per the 2021 Amendment Rules:
The National Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds â‚ą2 Crores.
(2) Appellate Jurisdiction-
To entertain appeals against the orders of any State Commission.
(3) Revisional Jurisdiction-
To call for records and pass orders in any consumer dispute pending before or decided by a State Commission where it appears the State Commission has:
(a) Exercised jurisdiction not vested in it.
(b) Failed to exercise vested jurisdiction.
(c) Acted with illegal or material irregularity.
In Synoco Industries v. State Bank of Bikaner,
The Supreme Court held- The principle remains that complex commercial matters requiring voluminous evidence may be redirected to Civil Courts, though the NCDRC's summary powers are broad.
III. POWERS AND PROCEDURE (S. 59 & 61)-
The National Commission has the power to:
- Review its own orders if there is an error apparent on the face of the record (S. 60).
- Declare null and void any terms of a contract which are unfair to any consumer (S. 58(1)(b)).
- Exercise powers of a Civil Court under the Code of Civil Procedure (CPC) for summoning, discovery, and evidence.
- National Commission (under Section 74) can refer a dispute to mediation if both parties agree in writing, provided there is a "settlement possibility." The NCDRC maintains a Mediation Cell for this purpose.
IV. APPEALS (S. 67)
Forum: An appeal against an order made by the National Commission in exercise of its original jurisdiction lies to the Supreme Court.
Limitation: The appeal must be filed within 45 days from the date of the order on the original side matter.
Pre-deposit: No appeal by a person required to pay an amount shall be entertained by the Supreme Court unless that person has deposited 50% of that amount.
V. FINALITY OF ORDERS (S. 68)
Every order of a District Commission, State Commission, or the National Commission shall, if no appeal has been preferred, be final.
VI. ADMINISTRATIVE CONTROL (S. 70)-
The National Commission shall have administrative control over all State Commissions. This includes:
- Calling for periodical returns regarding the institution, disposal, and pendency of cases.
- Adoption of uniform procedures and service of notices.
- Overseeing the functioning of State Commissions and District Commissions to ensure the objects of the Act are best served.
VII. The changes brought by CPA, 2019, in CPA, 1986.-
The following is a comprehensive breakdown of the differences between the Consumer Protection Act (CPA) 1986 and the CPA 2019, specifically regarding the National Commission, as follows:
- Shift in Pecuniary Jurisdiction:
Under the 1986 Act, the National Commission had the authority to entertain complaints where the value of goods or services exceeded â‚ą1 Crore. The 2019 Act, as updated by the 2021 Rules, significantly raised this threshold to above â‚ą2 Crores, ensuring the National Commission focuses on high-value litigation.
- Revised Basis of Valuation:
In the 1986 regime, the value of a claim was determined by totalling the cost of the goods/services plus the compensation demanded. The 2019 Act simplified this by looking only at the consideration paid (the actual price paid for the item or service), which prevents claimants from artificially inflating values to reach the National Commission.
- Introduction of Review Power:
Under the 1986 Act, the NCDRC did not have an inherent statutory power to review its own orders. Section 60 of the 2019 Act explicitly granted this power, allowing the Commission to review any order where there is an error apparent on the face of the record.
- Authority Over Unfair Contracts:
The 2019 Act introduced a specialised original jurisdiction under Section 58(1)(b), allowing the National Commission to declare terms of a contract "null and void" if they are deemed unfair to the consumer. This specific power to strike down contract terms did not exist under the 1986 Act.
- Extension of Appeal Limitation:
The timeframe for filing an appeal against an original jurisdiction order of the National Commission to the Supreme Court was extended. While the 1986 Act mandated filing within 30 days, the 2019 Act increased this window to 45 days (Section 67).
- Stricter Pre-deposit Requirements:
To curb frivolous appeals, the 2019 Act removed the maximum cap of â‚ą50,000 for pre-deposits. Under the old act, one had to pay 50% or â‚ą50,000, whichever was less; now, a mandatory 50% of the entire awarded amount must be deposited to move the Supreme Court.
- Institutionalised Mediation:
A major addition in the 2019 Act is the formal provision for Mediation under Section 74. This established Mediation Cells at the National Commission level to settle disputes amicably, a feature that was entirely absent in the 1986 legislation.
- Centralised Selection Process:
The appointment mechanism shifted from a simple committee under the 1986 Act to a more centralised Search-cum-Selection Committee model under the 2019 Act, providing more rigorous oversight by the Central Government and the Judiciary.
The Search-cum-Selection Committee now includes the Chief Justice of India (or a nominee Judge of the Supreme Court) as the Chairperson for NCDRC appointments, which is a major shift toward judicial oversight compared to the 1986 Act.
- Enhanced Enforcement and Penal Powers:
The 2019 Act gave the Commission more "teeth" by granting it the powers of a Judicial Magistrate First Class for the trial of offences. It can now order the attachment of property for non-compliance, making its enforcement mechanisms much stronger than the 1986 provisions.
- Modernisation through E-filing:
While the 1986 Act was built for physical filings, the 2019 Act provides the legal framework for Electronic Filing and conducting hearings through Video Conferencing, making the NCDRC more accessible to consumers across the country.
- Eligibility for Reappointment:
Under the 1986 regime, members generally served a single term. The 2019 Rules changed this to allow for the reappointment of members and the President for another five-year term (up to the age of 67 for members and 70 years for the President), which helps maintain judicial expertise and continuity within the Commission.
========================================================
NOTES
(1). WRIT JURISDICTION:-
SYNOPSIS
a. The Constitutional Framework-
b. Statutory Hierarchy vs. Constitutional Power-
c. The Judicial Conflict and Resolution-
i. The Restrictive View:
ii. The Expansive View:
iii. The Settled Position (Exhaustive Addition)-
iv. Exceptions where Writ may still lie:
a. The Constitutional Framework-
The writ jurisdiction of the Supreme Court under Article 32 is limited to the enforcement of Fundamental Rights. Conversely, the jurisdiction of High Courts under Article 226 is significantly broader, as it extends to the enforcement of both Fundamental Rights and "for any other purpose" (ordinary legal rights).
b. Statutory Hierarchy vs. Constitutional Power-
Under the Consumer Protection Act, 2019, the High Court is not designated as a statutory appellate or revisional authority. The hierarchy of redressal is strictly defined:
i. District Commission, appeal to State Commission.
ii. State Commission, appeal/Revision to National Commission (NCDRC).
iii. National Commission, Statutory Appeal to the Supreme Court (under Section 67 or 71).
c. The Judicial Conflict and Resolution-
The question arises: Can a party bypass this hierarchy and approach the High Court under Article 226?
i. The Restrictive View: In L. Padmanabhan v. Consumer Dispute Redressal Forum, the Kerala High Court held that since the Act provides a "complete code" and an efficacious alternative remedy, a writ petition under Art. 226 is generally not maintainable.
ii. The Expansive View: In Calcutta Metropolitan Development Authority v. Union of India, the Calcutta High Court noted that an alternative remedy is a rule of discretion, not an absolute bar, especially when a jurisdictional error or a question of law is involved.
iii. The Settled Position (Exhaustive Addition)-
The Supreme Court’s stance in Cicily Kallarackal v. Vehicle Factory .
The Apex Court held: High Courts cannot entertain writ petitions against the orders of the NCDRC, as a statutory right of appeal to the Supreme Court is provided. Such interference by High Courts bypasses the hierarchy and defeats the objective of speedy disposal.
iv. Exceptions where Writ may still lie:
Even with the above restriction, a writ may be entertained if:
(1) The order is passed in total violation of the principles of Natural Justice.
(2) The consumer forum acted without jurisdiction.
(3) The vires (legality) of the Act itself is challenged. ========================================================
2. EXECUTION OF ORDERS UNDER CPA, 2019
SYNOPSIS
a. Civil Enforcement (Section 71)-
b. Important Provisions of Section 71:
Deemed Decree:
Transfer of Execution:
For Companies:
For Individuals:
Direct Execution:
c. Penalties for Non-Compliance (Section 72)-
d. Important Legal Nuance: Section 73 (Appeals against Execution)-
e. Comparison & Exhaustive Additions.
a. Civil Enforcement (Section 71)-
Every order made by a District Commission, State Commission, or National Commission shall be enforced by it in the same manner as if it were a decree of a Civil Court under Order XXI of the Code of Civil Procedure, 1908.
b. Important Provisions of Section 71:
Deemed Decree: The Commission’s order is treated as a formal legal decree of a civil court.
Transfer of Execution: If the Commission is unable to execute the order, it may send the order to a Civil Court within the local limits of whose jurisdiction:
For Companies: The registered office of the company is situated.
For Individuals: The person concerned voluntarily resides, carries on business, or personally works for gain.
Direct Execution: The Court to which the order is sent shall execute it as if it were a decree sent to it for execution.
c. Penalties for Non-Compliance (Section 72)-
This is the "criminal" side of execution, which ensures that parties do not ignore the Commission's directions.
Punishment: Whoever fails to comply with any order made by the District, State, or National Commission shall be punishable with:
Imprisonment: Not less than one month, which may extend to three years; OR
Fine: Not less than â‚ą25,000, which may extend to â‚ą1,00,000; OR Both.
Summary Trial Powers: For the purpose of Section 72, the Commissions are vested with the powers of a Judicial Magistrate of the First Class for the trial of offences under the Act.
d. Important Legal Nuance: Section 73 (Appeals against Execution)-
An appeal against an order passed under the execution/penalty stage (Section 72) lies with the higher Commission:
i. Order of District Commission - Appeal to State Commission.
ii. Order of the State Commission- Appeal to the National Commission.
iii. Order of the National Commission- Appeal to the Supreme Court.
Limitation: Such appeals must be filed within 15 days from the date of the order.
e. Comparison & Exhaustive Additions
The changes introduced in 2019:
Feature | Old Act (1986) | New Act (2019) |
Section | Section 25 | Section 71 & 72 |
Nomenclature | District Forum | District Commission |
Enforcement Power | Limited civil powers | Power of a Magistrate (1st Class) for penalties |
Fines | Up to â‚ą10,000 | Up to â‚ą1,00,000 |
Interim Orders | Less clear on execution | Interim orders are now explicitly enforceable under these sections. |
*****
Reference-
1. The Consumer Protection Act, 2019
https://ncdrc.nic.in/bare_acts/CPA2019.pdf
2. Consumer Protection Act, 2019
https://blog.ipleaders.in/consumer-protection-act-2019-2/
3. National Commission under Consumer Protection Act – Composition and Powers
4. Jurisdiction of National Commission.
https://www.indiacode.nic.in/show-data?actid=AC_CEN_21_44_00007_201935_1596441164903&orderno=58
5. National Consumer Dispute Redressal Commission
6. National Consumer Disputes Redressal Commission.
7. 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