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Introduction
The year 1986 is a Magna Carta in the history of Consumerism.
It was
this year that witnessed the enactment of the Consumer Protection
Act.
The first ever legislation in India of its kind which solely aimed
at
the grief staken consumers who the victims of the unfair trade
practices
and substandard services rendered to them. The preamble to this
Act
reads as follows: An Act to provide for better protection of the
interests of the consumers and to make provisions for the
establishment
of consumer councils and other authorities for the settlement of
consumers disputes and for matter connected therewith. Thus the
preamble to this Act makes the intention of the framers of this
Act
crystal clear . The setting up of the dispute redressal machinery
was
only to secure and enable speedy justice to the aggrieved
consumers. The enactment of the Consumer Protection Act, 1986, a milestone in
the
history of socio-economic legislation in India, has considerably
consolidated the process of consumer protection and has given
rise,
during the past few years, to new consumer jurisprudence. The act
introduced a three-tier quasi-judicial consumer disputes redressal
mechanism at the district, state and national level for dispensing
inexpensive and time-bound consumer justice. Though passed in
1986, its
effective implementation started only in 1990 when the
institutions
envisaged under the act were established throughout the country,
thereby
enabling a large number of consumers and organisations to approach
these
forums for the redressal of their grievances.
The Consumer Protection Act, 1986 underwent some amendments. Among
them
the important and latest amendment is of 2002. So we can say that
the
Act is in focus to the needs of the time. With this introduction,
let me
explain my assignment topic i.e, State Commission under Consumer
Protection Act.
1. Composition of the State Commission (Section 16)
Each State Commission shall consist of One President and two or
more
other members.
1.1 The President
The President shall be a person who is or has been a Judge of a
High
Court, appointed by the State Government. His appointment should
be made
in consultation with the Chief Justice of High Court.
1.2 Members
In the state commission there should be not less than two, and not
more
than such number of members, as may be prescribed, and one of whom
shall
be a woman.
1.2.1 Qualifications of members
The members should have the following qualifications in order to
be a
member in the state commission for consumer disputes redressel
(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.
1.2.2 Disqualifications of Members (Section 16(1))
A new proviso has been added to Section 16(1), by the Consumer
Protection Amendment Act, 2002. They are as following
(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 undischarged 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.
1.2.3 Selection committee for appointment of members (Sec.16 (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 incharge 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.
1.2.4 Term of Office (Section 16 (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 fulfills 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.
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.
2 Jurisdiction of the State Commission
Subject to the other provisions of this Act, the State Commission
shall have jurisdiction
2.1 Pecuniary Jurisdiction
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, then it comes under the pecuniary jurisdiction of State
Commission.
It may be noted that prior to amendment the pecuniary jurisdiction
of
state commission was upto 20 lakhs. By the Consumer Protection
(Amendment) Act, 2002, the jurisdiction of the State Commission
has been
increased to Rs. 1 Crore. The change is likely to be beneficial to
the
consumer. It will reduce the number of complaints to the National
Commission.
2.2 Territorial Jurisdiction
A complaint shall be instituted in a State Commission within the
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 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, 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 work for
gain,
as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
2.3 Appellate Jurisdiction (Section 15)
Section 15 of the Act gives the right to prefer an appeal to the
state
commission within a period of thirty days from the date of order
of the District Forum to any person who has been aggrieved by the
order. The
time limit may be extended by the state commission on showing
sufficient
cause.
The person making an appeal should deposit 50% of the decreed
amount or
Rs.25000/- whichever is less. This requirement has been introduced
by
the Consumer Protection (Amendment) Act, 2002.
3. Transfer of cases (Section 17 A)
This section is also inserted by the Consumer Protection
(Amendment)
Act, 2002. This section enables the State Commission to transfer a
Case
from one District Forum to another within the state. On the
application
of a complaint or of its own motion, the State Commission may, at
any
stage of the proceeding, transfer any complaint pending before the
District Forum to another District Forum within the State if the
interest of justice so requires.
4. Circuit Benches (Section 17 B)
This is a new provision inserted in the Act by the Consumer
Protection
(Amendment) Act, 2002. Section 17 B, provides for establishment of
Circuit Benches of State Commission. The State Commission shall
ordinarily function in the State Capital but may perform its
functions
at such other place as the State Government may, in consultation
with
the State Commission, notify in the Official Gazette, from time to
time.
5. Expeditious hearing of appeal (Section 19 A)
A new section, 19A, has been inserted by the consumer protection
(Amendment) Act, 2002. It provides that endeavour shall be made to
dispose of appeals filed before the State Commission or the
National
Commission within ninety days from the date of admission. It
provided
for expeditious hearing of appeal, quicker decision and
restriction of
adjournment.
Conclusion
The scope of the Consumer Protection Act is widening in the
society
which is pro to globalization, industrialization and
Privatization. So
the Legislature has taken all the possible steps by making timely
amendments to the Act in accordance with the needs of time. In
fact all
the amendments made to the Consumer Protection Act by the 2002
Amendments aim at furthering the efficiency of the Act and doing
away
with procedural delays which render the consumers disillusioned
and
dissatisfied. These Amendments have been fruitful in providing
protection to the consumers in the real sense of the term and
served
the purpose of the Act. It is hoped that further amendments would
aim at
even more efficiency and render the position of the consumers much
stronger in this era of globalization and privatization where the
sudden
unchecked advent of Multi National Companies has to be balanced
with the
protection of the rights of the consumers by the legislature and
the
judiciary.
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The
State Commission, Under Consumer Protection Act
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The
author can be reached at: jofin@legalserviceindia.com /
