On 31 December 2021, the Department of Consumer Affairs under Union Ministry of Consumer Affairs, Food and Public Distribution notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules, 2021 vide issuance of a Gazette Notification under relevant provisions/sections of Consumer Protection Act, 2019. The ibid Rules have come into effect with immediate effect.
It has been over and a half year since Consumer Protection Act, 2019 as enacted by Parliament in August, 2019 got enforced/implemented across the country with effect from 20th July 2020 and 24th July 2020 vide issuance of two separate Central Government Gazette Notifications.
As per existing provisions of prevalent Consumer Protection Act, 2019, District Consumer Disputes Redressal Commissions, known as District Commissions, have jurisdiction to entertain complaints where value of the goods or services paid as consideration does not exceed one crore rupees. State Consumer Disputes Redressal Commissions, known as State Commissions have jurisdiction to entertain complaints where value of the goods or services paid as consideration exceeds 1 crore rupees but does not exceed 10 crore rupees. National Consumer Disputes Redressal Commission, known as National Commission has jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds 10 crore rupees.
However, with issuance of notification of hereinbefore mentioned 2021 Rules as notified with effect from 31 Dec 2021, the pecuniary jurisdiction, of the Consumer Panels has been revised. Henceforth, District Commissions shall have jurisdiction to entertain complaints where value of the goods or services paid as consideration does not exceed 50 lakh rupees.
State Commissions shall have jurisdiction to entertain complaints where value of the goods or services paid as consideration exceeds 50 lakh rupees but does not exceed 2 crore rupees. National Commission shall have jurisdiction to entertain complaints where value of the goods or services paid as consideration exceeds 2 crore rupees.
Now the question arises that if the Central Government can do so means revise the pecuniary jurisdiction of Consumer Panels without Parliament making appropriate amendments in the Consumer Protection Act, 2019. The answer is affirmative since the relevant sections in the Act authorize the Central Government to do so by exercising power conferred under Section(s) 34, 47 and 58 along with Section 101 which pertains to power of Central Government to make Rules.
However, the moot but significant point is that sub-clause (ii) of clause (a) of sub-section (1) of section 47 of the Act stipulates that the State Commission shall also have jurisdiction to entertain complaints against unfair contracts, where the value of goods or services paid as consideration does not exceed ten crore rupees. Thus on one hand, the pecuniary jurisdiction of State Commissions would be maximum 2 crore rupees in one aspect and maximum 10 crore rupees in another aspect.
Similarly, sub-clause (ii) of clause (a) of sub-section (1) of section 58 of the Act, 2019 stipulates that the National Commission shall have jurisdiction to entertain complaints against unfair contracts where the value of the goods or services paid as consideration exceeds rupees ten crore. Thus, like State Commissions, the National Commission too shall have pecuniary jurisdiction of above 2 crore rupees in one aspect but above 10 crore rupees in another aspect.
Ideally, the pecuniary jurisdiction of State Commissions ought to be one and same with respect to entertaining complaints both under sub-clause (i) and (ii) of clause (a) of sub-section (1) of section 47 and correspondingly pecuniary jurisdiction of National Commission ought to be also one and same with respect to entertaining complaints both under sub-clause (i) and (ii) of clause (a) of sub-section (1) of section 58 of Consumer Protection Act, 2019.
Furthermore, although Jammu and Kashmir Reorganization Act, 2019 as enacted by Parliament and enforced with effect from 31 October 2019 via its Fifth Schedule also amended the erstwhile Consumer Protection Act, 1986 by omitting the words “except the State of Jammu and Kashmir” thus making Consumer Protection Act, 1986 applicable to J&K with effect from 31 Oct, 2019 but the fact is that with enforcement of new Consumer Protection Act, 2019, the erstwhile Consumer Protection Act, 1986 has got repealed consequently. Even the J&K Consumer Protection Act, 1987 has got repealed. The new and now prevalent Consumer Protection Act, 2019 is not applicable to State of J&K since Section 1(2) of ibid 2019 Act excludes its applicability to J&K. Although since 31 October, 2019 J&K is no more a State but rather a Union Territory along with UT of Ladakh, so even if Consumer Protection Act, 2019 is not applicable to State of J&K as on date, it would not ipso facto mean that it would not also be applicable to UT of J&K. Be that as it may, this ambiguity too remains to be resolved at the earliest for once and all.
