43. Qualifications, etc., of President and members of State Commission.—
The Central
Government may, by notification, make rules to provide for the qualification for appointment, method of
recruitment, procedure of appointment, term of office, resignation and removal of the President and
members of the State Commission.
44. Salaries, allowances and other terms and conditions of service of President and members of
State Commission.—The State Government may, by notification, make rules to provide for salaries and
allowances and other terms and conditions of service of the President and members of the State
Commission.
45. Transitional provision.—Any person appointed as President or, as the case may be, a member of
the State Commission immediately before the commencement of this Act shall hold office as such, as
President or member, as the case may be, till the completion of his term.
46. Officers and employees of State Commission.—
(1) The State Government shall determine the
nature and categories of the officers and other employees required to assist the State Commission in the
discharge of its functions and provide the Commission with such officers and other employees as it may
think fit.
(2) The officers and other employees of the State Commission shall discharge their functions under
the general superintendence of the President.
(3) The salaries and allowances payable to and the other terms and conditions of service of, the
officers and other employees of the State Commission shall be such as may be prescribed.
23
47. Jurisdiction of State Commission.—
(1) Subject to the other provisions of this Act, the State
Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where the value of the goods or services paid as consideration, exceeds rupees
one crore, but does not exceed rupees ten crore:
Provided that where the Central Government deems it necessary so to do, it may prescribe
such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid as
consideration does not exceed ten crore rupees;
(iii) appeals against the orders of any District Commission within the State; and
(b) to call for the records and pass appropriate orders in any consumer dispute which is pending
before or has been decided by any District Commission within the State, where it appears to the State
Commission that such District Commission 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.
(2) The jurisdiction, powers and authority of the State Commission may be exercised by Benches
thereof, and a Bench may be constituted by the President with one or more members as the President may
deem fit:
Provided that the senior-most member shall preside over the Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the members are equally divided,
they shall state the point or points on which they differ, and make a reference to the President who shall
either hear the point or points himself or refer the case for hearing on such point or points by one or more
of the other members and such point or points shall be decided according to the opinion of the majority of
the members who have heard the case, including those who first heard it:
Provided that the President or the other members, as the case may be, shall give opinion on the point
or points so referred within a period of one month from the date of such reference.
(4) 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, ordinarily 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 in such case, the permission of the State Commission is given;
or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.
48. Transfer of cases.—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 a District
Commission to another District Commission within the State if the interest of justice so requires.
49. Procedure applicable to State Commission.—
(1) The provisions relating to complaints under
sections 35, 36, 37, 38 and 39 shall, with such modifications as may be necessary, be applicable to the
disposal of complaints by the State Commission.
(2) Without prejudice to the provisions of sub-section
(1), the State Commission may also declare any
terms of contract, which is unfair to any consumer, to be null and void.
24
50. Review by State Commission in certain cases.—The State Commission shall have the power to
review any of the order passed by it if there is an error apparent on the face of the record, either of its own
motion or on an application made by any of the parties within thirty days of such order.
51. Appeal to National Commission.—
(1) Any person aggrieved by an order made by the State
Commission in exercise of its powers conferred by sub-clause
(i) or (ii) of clause
(a) of sub-section
(1) of
section 47 may prefer an appeal against such order to the National Commission within a period of thirty
days from the date of the order in such form and manner as may be prescribed:
Provided that the National Commission shall not entertain the appeal after the expiry of the said
period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period:
Provided further that no appeal by a person, who is required to pay any amount in terms of an order of
the State Commission, shall be entertained by the National Commission unless the appellant has
deposited fifty per cent. of that amount in the manner as may be prescribed.
(2) Save as otherwise expressly provided under this Act or by any other law for the time being in
force, an appeal shall lie to the National Commission from any order passed in appeal by any State
Commission, if the National Commission is satisfied that the case involves a substantial question of law.
(3) In an appeal involving a question of law, the memorandum of appeal shall precisely state the
substantial question of law involved in the appeal.
(4) Where the National Commission is satisfied that a substantial question of law is involved in any
case, it shall formulate that question and hear the appeal on that question:
Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the
National Commission to hear, for reasons to be recorded in writing, the appeal on any other substantial
question of law, if it is satisfied that the case involves such question of law.
(5) An appeal may lie to the National Commission under this section from an order passed ex parte
by the State Commission.
52. Hearing of appeal.—An appeal filed before the State Commission or the National Commission,
as the case may be, shall be heard as expeditiously as possible and every endeavour shall be made to
dispose of the appeal within a period of ninety days from the date of its admission:
Provided that no adjournment shall ordinarily be granted by the State Commission or the National
Commission, as the case may be, unless sufficient cause is shown and the reasons for grant of
adjournment have been recorded in writing by such Commission:
Provided further that the State Commission or the National Commission, as the case may be, shall
make such orders as to the costs occasioned by the adjournment, as may be specified by regulations:
Provided also that in the event of an appeal being disposed of after the period so specified, the State
Commission or the National Commission, as the case may be, shall record in writing the reasons for the
same at the time of disposing of the said appeal.
53. Establishment of National Consumer Disputes Redressal Commission.—
(1) The Central
Government shall, by notification, establish a National Consumer Disputes Redressal Commission, to be
known as the National Commission.
(2) The National Commission shall ordinarily function at the National Capital Region and perform its
functions at such other places as the Central Government may in consultation with the National
Commission notify in the Official Gazette:
Provided that the Central Government may, by notification, establish regional Benches of the
National Commission, at such places, as it deems fit.
54. Composition of National Commission.—The National Commission shall consist of—
(a) a President; and
(b) not less than four and not more than such number of members as may be prescribed.
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55. Qualifications, etc., of President and members of National Commission.—
(1) The Central
Government may, by notification, make rules to provide for qualifications, appointment, term of office,
salaries and allowances, resignation, removal and other terms and conditions of service of the President
and members of the National Commission:
Provided that the President and members of the National Commission shall hold office for such term
as specified in the rules made by the Central Government but not exceeding five years from the date on
which he enters upon his office and shall be eligible for re-appointment:
Provided further that no President or members shall hold office as such after he has attained such age
as specified in the rules made by the Central Government which shall not exceed,—
(a) in the case of the President, the age of seventy years;
(b) in the case of any other member, the age of sixty-seven years.
1
[(1A) Notwithstanding anything contained in sub-section
(1), the qualifications, appointment, term of
office, salaries and allowances, resignation, removal and the other terms and conditions of service of the
President and other members of the National Commission appointed after the commencement of the
Tribunal Reforms Act, 2021, shall be governed by the provisions of the said Act.]
(2) Neither the salary and allowances nor the other terms and conditions of service of President and
members of the National Commission shall be varied to his disadvantage after his appointment.
56. Transitional provision.—The President and every other member appointed immediately before
the commencement of section 177 of the Finance Act, 2017 (7 of 2017) shall continue to be governed by
the provisions of the Consumer Protection Act, 1986 (68 of 1986) and the rules made there under as if
this Act had not come into force.
57. Other officers and employees of National Commission.—
(1) The Central Government shall
provide, in consultation with the President of the National Commission, such number of officers and other
employees to assist the National Commission in the discharge of its functions as it may think fit.
(2) The officers and other employees of the National Commission shall discharge their functions
under the general superintendence of the President of the National Commission.
(3) The salaries and allowances payable to, and the other terms and conditions of service of, the
officers and other employees of the National Commission shall be such as may be prescribed.
58. Jurisdiction of National Commission.—
(1) Subject to the other provisions of this Act, the
National Commission shall have jurisdiction—
(a) to entertain—
(i) complaints where the value of the goods or services paid as consideration exceeds rupees
ten crore:
Provided that where the Central Government deems it necessary so to do, it may prescribe
such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid as
consideration exceeds ten crore rupees;
(iii) appeals against the orders of any State Commission;
(iv) appeals against the orders of the Central Authority; and
(b) 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 has failed to
exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with
material irregularity.
1. Ins. by Act 33 of 2021, s. 30 (w.e.f. 4-4-2021).
26
(2) The jurisdiction, powers and authority of the National Commission may be exercised by Benches
thereof and a Bench may be constituted by the President with one or more members as he may deem fit:
Provided that the senior-most member of the Bench shall preside over the Bench.
(3) Where the members of a Bench differ in opinion on any point, the points shall be decided
according to the opinion of the majority, if there is a majority, but if the members are equally divided,
they shall state the point or points on which they differ, and make a reference to the President who shall
either hear the point or points himself or refer the case for hearing on such point or points by one or more
of the other members and such point or points shall be decided according to the opinion of the majority of
the members who have heard the case, including those who first heard it:
Provided that the President or the other member, as the case may be, shall give opinion on the point or
points so referred within a period of two months from the date of such reference.
59. Procedure applicable to National Commission.—
(1) The provisions relating to complaints
under sections 35, 36, 37, 38 and 39 shall, with such modifications as may be considered necessary, be
applicable to the disposal of complaints by the National Commission.
(2) Without prejudice to sub-section
(1), the National Commission may also declare any terms of
contract, which is unfair to any consumer to be null and void.
60. Review by National Commission in certain cases.—The National Commission shall have the
power to review any of the order passed by it if there is an error apparent on the face of the record, either
of its own motion or on an application made by any of the parties within thirty days of such order.
61. Power to set aside ex parte orders.—Where an order is passed by the National Commission ex
parte, the aggrieved party may make an application to the Commission for setting aside such order.
62. Transfer of cases.—On the application of the complainant or of its own motion, the National
Commission may, at any stage of the proceeding, in the interest of justice, transfer any complaint pending
before the District Commission of one State to a District Commission of another State or before one State
Commission to another State Commission.
63. Vacancy in office of President of National Commission.—When the office of President of the
National Commission is vacant or a person occupying such office is, by reason of absence or otherwise,
unable to perform the duties of his office, these shall be performed by the senior-most member of the
National Commission:
Provided that where a retired Judge of a High Court or a person who has been a Judicial Member is a
member of the National Commission, such member or where the number of such members is more than
one, the senior-most person amongst such members, shall preside over the National Commission in the
absence of President of that Commission.
64. Vacancies or defects in appointment not to invalidate orders.—No act or proceeding of the
District Commission, the State Commission or the National Commission shall be invalid by reason only
of the existence of any vacancy amongst its members or any defect in the constitution thereof.
65. Service of notice, etc.—
(1) All notices, required by this Act to be served, shall be served by
delivering or transmitting a copy thereof by registered post acknowledgment due addressed to opposite
party against whom complaint is made or to the complainant by speed post or by such courier service,
approved by the District Commission, the State Commission or the National Commission, as the case
may be, or by any other mode of transmission of documents including electronic means.
(2) Without prejudice to the provisions contained in sub-section
(1), the notice required by this Act
may be served on an electronic service provider at the address provided by it on the electronic platform
from where it provides its services as such and for this purpose, the electronic service provider shall
designate a nodal officer to accept and process such notices.
(3) When an acknowledgment or any other receipt purporting to be signed by the opposite party or his
agent or, as the case may be, by the complainant is received by the District Commission, the State
Commission or the National Commission, as the case may be, or postal article containing the notice is
27
received back by such District Commission, State Commission or the National Commission, with an
endorsement purporting to have been made by a postal employee or by any person authorised by the
courier service to the effect that the opposite party or his agent or complainant had refused to take
delivery of the postal article containing the notice or had refused to accept the notice by any other means
specified in sub-section
(1) when tendered or transmitted to him, the District Commission or the State
Commission or the National Commission, as the case may be, shall declare that the notice has been duly
served on the opposite party or to the complainant, as the case may be:
Provided that where the notice was properly addressed, pre-paid and duly sent by registered post
acknowledgment due, a declaration referred to in this sub-section shall be made notwithstanding the fact
that the acknowledgment has been lost or misplaced, or for any other reason, has not been received by the
District Commission, the State Commission or the National Commission, as the case may be, within
thirty days from the date of issue of notice.
(4) All notices required to be served on an opposite party or to complainant, as the case may be, shall
be deemed to be sufficiently served, if addressed in the case of the opposite party, to the place where
business or profession is carried on, and in case of the complainant, the place where such person actually
and voluntarily resides.
66. Experts to assist National Commission or State Commission.—Where the National
Commission or the State Commission, as the case may be, on an application by a complainant or
otherwise, is of the opinion that it involves the larger interest of consumers, it may direct any individual
or organisation or expert to assist the National Commission or the State Commission, as the case may be.
67. Appeal against order of National Commission.—Any person, aggrieved by an order made by
the National Commission in exercise of its powers conferred by sub-clause
(i) or (ii) of clause
(a) of
sub-section
(1) of section 58, may prefer an appeal against such order to the Supreme Court within a
period of thirty days from the date of the order:
Provided that the Supreme Court may entertain an appeal after the expiry of the said period of thirty
days if it is satisfied that there was sufficient cause for not filing it within that period:
Provided further that no appeal by a person who is required to pay any amount in terms of an order of
the National Commission shall be entertained by the Supreme Court unless that person has deposited fifty
per cent. of that amount in the manner as may be prescribed.
68. Finality of orders.—Every order of a District Commission or the State Commission or the
National Commission, as the case may be, shall, if no appeal has been preferred against such order under
the provisions of this Act, be final.
69. Limitation period.—
(1) The District Commission, the State Commission or the National
Commission shall not admit a complaint unless it is filed within two years from the date on which the
cause of action has arisen.
(2) Notwithstanding anything contained in sub-section
(1), a complaint may be entertained after the
period specified in sub-section
(1), if the complainant satisfies the District Commission, the State
Commission or the National Commission, as the case may be, that he had sufficient cause for not filing
the complaint within such period:
Provided that no such complaint shall be entertained unless the District Commission or the State
Commission or the National Commission, as the case may be, records its reasons for condoning such
delay.
70. Administrative control.—
(1) The National Commission shall have the authority to lay down
such adequate standards in consultation with the Central Government from time to time, for better
protection of the interests of consumers and for that purpose, shall have administrative control over all the
State Commissions in the following matters, namely:—
(a) monitoring performance of the State Commissions in terms of their disposal by calling for
periodical returns regarding the institution, disposal and pendency of cases;
28
(b) investigating into any allegations against the President and members of a State Commission
and submitting inquiry report to the State Government concerned along with copy endorsed to the
Central Government for necessary action;
(c) issuance of instructions regarding adoption of uniform procedure in the hearing of matters,
prior service of copies of documents produced by one party to the opposite parties, furnishing of
english translation of judgments written in any language, speedy grant of copies of documents;
(d) overseeing the functioning of the State Commission or the District Commission either by way
of inspection or by any other means, as the National Commission may like to order from time to time,
to ensure that the objects and purposes of the Act are best served and the standards set by the National
Commission are implemented without interfering with their quasi-judicial freedom.
(2) There shall be a monitoring cell to be constituted by the President of the National Commission to
oversee the functioning of the State Commissions from the administrative point of view.
(3) The State Commission shall have administrative control over all the District Commissions within
its jurisdiction in all matters referred to in sub-section
(1).
(4) The National Commission and the State Commissions shall furnish to the Central Government
periodically or as and when required, any information including the pendency of cases in such form and
manner as may be prescribed.
(5) The State Commission shall furnish, periodically or as and when required to the State Government
any information including pendency of cases in such form and manner as may be prescribed.
71. Enforcement of orders of District Commission, State Commission and National
Commission.—Every order made by a District Commission, State Commission or the National
Commission shall be enforced by it in the same manner as if it were a decree made by a Court in a suit
before it and the provisions of Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of
1908) shall, as far as may be, applicable, subject to the modification that every reference therein to the
decree shall be construed as reference to the order made under this Act.
72. Penalty for non-compliance of order.—
(1) Whoever fails to comply with any order made by the
District Commission or the State Commission or the National Commission, as the case may be, shall be
punishable with imprisonment for a term which shall not be less than one month, but which may extend to
three years, or with fine, which shall not be less than twenty-five thousand rupees, but which may extend
to one lakh rupees, or with both.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the
District Commission, the State Commission or the National Commission, as the case may be, shall have
the power of a Judicial Magistrate of first class for the trial of offences under sub-section
(1), and on
conferment of such powers, the District Commission or the State Commission or the National
Commission, as the case may be, shall be deemed to be a Judicial Magistrate of first class for the
purposes of the Code of Criminal Procedure, 1973.
(3) Save as otherwise provided, the offences under sub-section
(1) shall be tried summarily by the
District Commission or the State Commission or the National Commission, as the case may be.
73. Appeal against order passed under section 72.—
(1) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973 (2 of 1974), where an order is passed under sub-section
(1) of section
72, an appeal shall lie, both on facts and on law from—
(a) the order made by the District Commission to the State Commission;
(b) the order made by the State Commission to the National Commission; and
(c) the order made by the National Commission to the Supreme Court.
(2) Except as provided in sub-section
(1), no appeal shall lie before any court, from any order of a
District Commission or a State Commission or the National Commission, as the case may be.
29
(3) Every appeal under this section shall be preferred within a period of thirty days from the date of
order of a District Commission or a State Commission or the National Commission, as the case may be:
Provided that the State Commission or the National Commission or the Supreme Court, as the case
may be, may entertain an appeal after the expiry of the said period of thirty days, if it is satisfied that the
appellant had sufficient cause for not preferring the appeal within the said period of thirty days.
CHAPTER V
MEDIATION
74. Establishment of consumer mediation cell.—
(1) The State Government shall establish, by
notification, a consumer mediation cell to be attached to each of the District Commissions and the State
Commissions of that State.
(2) The Central Government shall establish, by notification, a consumer mediation cell to be attached
to the National Commission and each of the regional Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain—
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.
(5) Every consumer mediation cell shall submit a quarterly report to the District Commission, State
Commission or the National Commission to which it is attached, in the manner specified by regulations.
75. Empanelment of mediators.—
(1) For the purpose of mediation,
