District Commission-Consumer Dispute Redressal Agencies

There shall be established for the purposes of this Act, agencies, namely:-

(a) “District Commission” established by the State Government,

(b) “State Commission” established by the State Govemment, and

(c) A National Consumer Disputes Redressal Commission established by the Central Government by notification.

The Chapter IV of the Consumer Protection Act, 2019 aims to create a three-tier Consumer Disputes Redressal Agency for the purpose of speedy and inexpensive grievance redressal of a consumer.

“District Commission”

Under Section 28 of the Act, the State Government shall, by notification, establish a District Consumer Disputes Redressal Commission, to be known as the District Commission.

Composition

Each District Commission shall consist of –

• a President; and
• not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government.

Qualifications for appointment of President and Member [Section 29]

1. He should be competent to be a District Judge.
2. He is thirty-five years old or more;
3. He should have a bachelor’s degree from a recognised university.
4. He is a person of ability, integrity, and standing, with special knowledge and professional experience of not less than fifteen years in consumer affairs, law, public affairs, administration, economics, commerce, industry, finance, management, engineering, technology, public health or medicine.
5. At least one member of the District Commission, or the President, shall be a woman.

Vacancy in office of member of District Commission [Section 32]

If there is a vacancy in a District Commission, the State Government may direct –

• The President or a member of any other District Commission to exercise the powers and functions of the President or member of that District Commission.
• In case of a casual vacancy of President, the State Government can appoint the senior most member to serve as President.

Procedure of Appointment [Section 29]

The President and Members of the District Commission shall be appointed by the State Government on the recommendation of a Selection Committee, consisting of the following persons, namely:-

• Chief Justice or any Judge of the High Court nominated by him (Chairperson)
• Secretary in charge of Consumer Affairs of the State Government (Member)

Resignation by President or Member of District Commission [Section 29]

The President or any Member may resign his office at any time by writing under his hand addressed to the State Government; however, the President or member shall continue to hold office

• until the expiry of three months from the date of receipt of such notice, or
• until a person duly appointed as a successor enters upon his office, or
• until the expiry of his term of office, whichever is the earlier.

Removal of President or Member of District Commission from office [Section 29]

The State Government shall remove from office any President or Member, who –

• has become insolvent
• has been convicted of an offence which involves moral turpitude
• is physically or mentally incapable
• has acquired financial or other interest
• has abused his position

Term of Office of President or Member [Section 29]

The President and each member of the District Commission shall hold office for four years or until the age of sixty-five years, whichever is earlier, and shall be eligible for reappointment for another four-year term on the recommendation of the Selection Committee.

Salaries and allowances payable to President and Members of District Commission [Section 30]

• The President is entitled to the same pay and allowances as a District Judge.
• A Member shall be paid the minimum salary of a Deputy Secretary of the State Government, as well as any extra allowances that may be granted to such person.

Jurisdiction of District Commission [Section 34]

Pecuniary Jurisdiction – The District Commission shall have jurisdiction to hear complaints when the value of the goods or services paid as consideration does not exceed one crore rupees, provided that the Central Government may prescribe such other value as it considers essential.

Territorial Jurisdiction – A complaint shall be instituted in a District Commission within the local limits of whose jurisdiction –

• the opposite party or each of the opposite parties, where there are more than one, ordinarily resides or carries on business or has a branch office or personally works for gain at the time of the institution of the complaint; or 
• any of the opposite parties, where there are more than one, actually and voluntarily resides or works for gain at the time of the institution of the complaint.
• the cause of action, wholly or in part, arises; or
• the complainant resides or personally works for gain.

Limitation period [Section 69]

The District Commission will not hear a complaint unless it is submitted within two years after the occurrence of the cause of action.

A complaint may be heard after the period if the complainant proves to the District Commission that he has adequate grounds for failing to file the complaint within such period.

Proceedings before District Commission [Section 36]

Every proceeding before the District Commission shall be conducted by the President of that Commission and atleast one member thereof, sitting together.

On receipt of a complaint made under Section 35, the District Commission may, by order, admit the complaint for proceeding with it or reject it. It shall be decided within twenty-one days of the date on which the complaint was filed otherwise it is presumed to have been allowed.

The District Commission has the power to require the production of any book, account, document, or commodity. Following an inspection of such seized documents or commodities, the District Commission may order their retention or return to the person involved.

Powers of District Forum [Section 38]

• the summoning and enforcing the attendance of any person and examining such persons on oath.
• power to compel discovery and production of any material or object which may be produced as evidence.
• power to receive evidence by means of affidavit.
• power to obtain report from the concerned appropriate laboratory.
• power to issue commission for the purpose of examination of witness.
• any other matter relating to the subject-matter of dispute/complaint.
• Parties are entitled to cross-examine the witnesses.
• Power to pass interim order.

Review by District Commission in certain cases [Section 40]

The District 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.

Appeal against order of District Commission [Section 41]

Any individual who is dissatisfied with a District Commission order may file an appeal with the State Commission on the basis of facts or law within forty-five days of the date of the order.

The State Commission may hear an appeal after the expiration of the forty-five-day term if it is convinced that there was sufficient grounds for not submitting it within that period.

Finality of Orders [Section 68]

Every order of a District Commission if no appeal has been preferred against such order, then it would be final.

Enforcement of Orders of District Commission [Section 71]

Every order made by a District Commission would be same as a decree made by a Civil Court in a suit.

Under Section 72, whoever fails to comply with any order made by the District Commission shall be punishable with imprisonment for a term of one month to three years, or with fine of twenty-five thousand rupees to one lakh rupees, or with both.

Related Post

• Consumer Protection Councils
• Standard of Goods – Consumer Protection Act
• Legal History Notes
• Consumer of Goods – Consumer Protection Act
• Rights and Duties of consumers | Consumer Movement
• Consumerism in India – Meaning | Need | Objects

Reference Books

1. Consumer Protection Law by Dr.SC Tripathi
2. Commentary on the Consumer Protection Act by J. N. Barowalia
3. Consumer Protection (Law & Practice) by V. K. Agarwal
4. Consumer Protection Act: A Commentary by G. B. Reddy

Source

1. https://www.hindustantimes.com