Business Portal of India : Consumer Rights and Welfare : Organizational Set Up : Consumer Courts or Consumer Fora or Consumer Disputes Redressal Agencies

The Consumer Protection Act has set up a three-tier quasi-judicial consumer disputes redressal machinery at the National, State and District levels, for expeditious and inexpensive settlement of consumer disputes. It is an alternative to the ordinary process of instituting actions before a civil court. These fora are mandated to provide simple, speedy and inexpensive redressal of the consumers' grievances. The three redressal agencies are as follows:

National Consumer Disputes Redressal Commission (NCDRC)

The Act empowers the Central Government to establish a National Consumers Disputes Redressal Commission . It is headed by a sitting or retired Judge of the Supreme Court of India. Subject to the other provisions of this Act, the National Commission shall have jurisdiction to:

Entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore ; and appeals against the orders of any State Commission; and
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 has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof. A Bench may be constituted by the President with one or more members as the President may deem fit.

Accordingly, a National Consumer Disputes Redressal Commission (NCDRC) was constituted in 1988. Presently, it is headed by Hon'ble Mr. Justice M.B. Shah, former Judge of the Supreme Court of India as President and is having eight members, viz. Mrs. Rajyalakshmi Rao, Mr. B.K. Taimni, Hon'ble Mr. Justice K. S. Gupta, Hon'ble Mr. Justice S.N. Kapoor, Dr. P. D. Shenoy, Mr. Anupam Dasgupta, Mr. S. K. Naik and Hon'ble Justice R.C. Jain.

In order to attain the objects of the Consumer Protection Act, the National Commission has also been conferred with the powers of administrative control over all the State Commissions by calling for periodical returns regarding the institution, disposal and pendency of cases. It is empowered to issue instructions regarding: (1) adoption of uniform procedure in the hearing of the matters; (2) prior service of copies of documents produced by one party to the opposite parties; (3) speedy grant of copies of documents; and (4) generally over-seeing the functioning of the State Commissions or the District Forums to ensure that the objects and purposes of the Act are best served without in any way interfering with their quasi-judicial freedom.

State Consumer Disputes Redressal Commissions

Under the Act, a State Consumer Disputes Redressal Commission shall be set up by the State Government for the respective State. At present there are 35 State Commissions functioning in differ States. The State Commissions are headed by a person who is or has been a Judge of High Court. Under the Consumer Protection Act, 1986, the National Consumer Disputes Redressal Commission exercises administrative control over the State Commissions. Subject to the other provisions of this Act, the State Commission shall have jurisdiction to:

Entertain 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 ; and appeals against the orders of any District Forum within the State; and
Call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where it appears to the State Commission that such District Forum has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.

Also, a complaint shall be instituted in a State Commission within the limits of whose jurisdiction:

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
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
The cause of action, wholly or in part, arises.

On the application of the complainant 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. 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.

District Forum

Under the Act, the State Government shall establish a District Forum in each district of the State, though, more than one District Forum may be established in a district if it is deemed fit. Presently, there are 604 District Forums functioning in different States. The District Forums are headed by the person who is or has been or is eligible to be appointed as a District Judge. The Forum shall have jurisdiction (subject to the other provisions of this Act) to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs. A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction:

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
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 District Forum 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
The cause of action, wholly or in part, arises.

Where two or more forums have jurisdiction, a complaint can be instituted in either of them. However, jurisdiction cannot be vested by agreement if otherwise the court has no jurisdiction. If the dispute between the parties is pending before the civil court, the Consumer Forum has no jurisdiction to entertain the same.

A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by the following:

The consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such service provided or agreed to be provided;
Any recognised consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or service provided or agreed to be provided is a member of such association or not;
One or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or
The Central Government or the State Government, as the case may be, either in its individual capacity or as a representative of interests of the consumers in general.

Every complaint filed shall be accompanied with such amount of fee and payable in such manner as may be prescribed. The District Forum may, on receipt of the complaint, allow it to be proceeded with or rejected. However, the complaint shall not be rejected unless an opportunity of being heard has been given to the complainant. The admissibility of the complaint shall ordinarily be decided within 21days from the date on which the complaint was received. On its admission, the complaint shall not be transferred to any other court or tribunal or any authority set up by or under any other law for the time being in force.

If a consumer is not satisfied by the decision of the District Forum, he/she can challenge the same before the State Commission and against the order of the State Commission a consumer can come to the National Commission.