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National Commission: Principles, procedures

K. Krishnamurthi

THE National Commission, under the Consumer Protection Act, has the jurisdiction:

  • to entertain complaints — where the value of the goods or services and compensation, if any, claimed exceeds Rs 1 crore — and appeals against the orders of any State Commission; and

  • to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law or failed to exercise a jurisdiction so vested or has acted in the exercise of its jurisdiction illegally or with material irregularity.

    The powers of, and procedure applicable to, the National Commission is as those for the District Forum and the State Commission. But the National Commission is vested with the power of review as well.

    Any ex parte order passed against either of the parties to a dispute may be set aside on the application of the aggrieved party on sufficient cause being show.

    The National Commission, either on its own motion or on application by the parties and at any stage of the proceedings, is vested with power to transfer any complaint before the District Forum of one State to a District Forum of another State or before one State Commission to another State Commission.

    Whenever there is a vacancy in the office, or the president of a District Forum, State Commission or National Forum, being unable to perform his duties, the duties are discharged by the senior-most member of the fora concerned.

    Against the order of the National Commission an appeal lies to the Supreme Court under Article 21(a)(I) of the Constitution, within 30 days from the date of the order.

    The apex court can also excuse the delay in filing appeal on sufficient cause being shown. However, 50 per cent of the compensation amount ordered has to be deposited while preferring an appeal.

    If no appeal is filed against the order of the District Forum, State Commission or National Forum, the order passed by the respective fora will be final.

    The limitation period for filing any complaint before all the fora is two years from the date on which cause of action arises. Here also discretion is vested with the fora to condone the delay if sufficient cause is adduced. The respective fora should record its reasons for condoning the delay.

    The National Commission has administrative control over all the State Commissions in certain matters as laid down in Section 24-B.

    The fora, constituted under the Act, have powers to pass interim orders and, in the event of non-compliance, they can attach the property of the defaulting party.

    Such attachment shall continue for three months and after the expiry of this period non-compliance continues, the forum that ordered the complaint can sell the property and, out of the sale proceed, pay the damages to the complainant.

    If any amount is due from any person as per the order of any fora, the person entitled to the amount can make an application for issue of certificate to the collector who will recover from the defaulting party as arrears of land revenue. If any complaint filed is frivolous or vexatious, the respective fora, after recording the reasons, can dismiss the complaint and direct the opposite party to such cost not exceeding Rs 10,000.

    There is also a penal provision for non-compliance of the order of the fora and the punishment is imprisonment for a term not less than two months to three years, a fine of Rs 2,000-10,000, or both. An order levying penalties is appealable under the Criminal Procedure Code.

    (The author is an advocate and notary.)

    Article E-Mail :: Comment :: Syndication

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