Consumer Dispute Redressal Commission (CDRC): Establishment, Qualification, Salaries, Jurisdiction, Powers, Vacancy and Appeal | CPA, 2019

The Consumer Protection Act, 2019 (CPA 2019), envisions a three-tier quasi-judicial machinery specifically designed to provide simple, speedy, and inexpensive redressal to consumer grievances. These bodies, known as Consumer Dispute Redressal Commissions (CDRCs), operate at the District, State, and National levels.

Unlike civil courts, these commissions are governed by the principles of natural justice and are intended to be more accessible to the common man.

District Commission

Establishment and Composition (Section 28):

1. The State Government shall by notification, establish a District Consumer Disputes Redressal Commission, to be known as the District Commission, in each district of the state: Provided that the State Government may, if it deems fit, establish more than one District Commission in a district.
2. Each District Commission shall consist of –
   1. a President; and
   2. not less than two and not more than such number of members as ay be prescribed, in consultation with the Central Government.

The Allahabad High Court in Kailash Chand Gupta v. State Commission (UP, Lucknow) has held that Section 10 of the CPA 1986 does not require either expressly or by necessary implication that member of a District Forum must be from the same district.

Qualification for President and Members (Section 29):

• A person shall not be qualified for appointment as President, unless he is or has been or qualified to be a District Judge.
• A person shall not be qualified for appointment as a member, unless he/she: -

1. Is of not less than 35 years of age.
2. Possess a bachelors’ degree from a recognised university.
3. Is a person of ability, integrity, and standing and having special knowledge and professional experience of not less than 15 years in consumer affairs, law, public affairs administration, economics, commerce, industry, finance, management, engineering, technology, public health or medicine.

At least one member or president of the District Commission shall be a woman.

Disqualification for appointment as President/member of District Commission (Section 29):

• A person shall be disqualified for appointment as President or a member of the District Commission, if he/she: -

1. Has been convicted and sentenced for imprisonment for an offence which invades moral turpitude.
2. Adjudges to be insolvent.
3. Is of unsound mind, declared by a competent authority.
4. Has been removed/dismissed from the service of the State Government.

Tenure of members of District Commission (Section 29):

The President and every member of the District Commission shall hold office for a term of 4 years or up to the age of 65 years, whichever is earlier, and shall be eligible for re-appointment for another term of 4 years, subject to the age limit of 65 years, and such re-appointment is based on the basis of the recommendation of the selection committee.

Procedure of appointment (Section 29):

The president and other members of the District Commission shall be appointed by the state government on the recommendation of the selection committee consisting of, namely: -

1. Chief justice of the High Court or any judge of the High Court. (Chairperson).
2. Secretary in-charge of consumer affairs, of the state government. (member).
3. Nominee of the chief secretary of the state. (member).

The process of appointments shall be initiated by the state government at least 6 months before the vacancy arises.

If a post falls vacant due to resignation or death of a member or creation of a new post, the process for filling the post shall be initiated immediately after the post has fallen vacant.

Members and President of District Forum, whether employees of government or not?

The division bench of Allahabad High Court in the case of Smt. Savitri Devi v. State of U.P., 2009, stated that since the president and members are entitled to hold office only after their appointment to the office by the State Government, it is the government who can prescribe terms and conditions of such appointment. Hence, the contention of petitioner that they are not employees of the state government, is illegal and unjustified.

Jurisdiction of District Forum (Section 34):

1. Territorial Jurisdiction – Every District Commission has definite geographical limits within which it can exercise its jurisdiction. A case is supposed to fall within such territory when at the time of the institution of the complaint:

1. The cause of action wholly or partially arises in that area.
2. The complainant resides or personally works for gain.
3. The opposite party resides or carry on business.

2. Appellate Jurisdiction – District Forum is the lowest consumer court; thus it does not have any appellate jurisdiction.
3. Pecuniary Jurisdiction –
   • As per CPA, 1986: up to 20 lakhs.
   • As per CPA, 2019: up to 1cr.
   • Revised in 2021: up to 50 lakhs.

State Commission

After the District commission, state is the next in the hierarchy of the consumer redressal forum under this act.

Composition of State Commission [Section 42(3)]):

• Each State Commission shall consist of - (a) a President; and (b) not less than four (including one woman) or not more than such number of members as may be prescribed in consultation with the Central Government.
• President is a person who is/has been a judge of the High Court. Members are persons of ability, integrity, and standing, and have adequate knowledge or experience or have shown adequate capacity in dealing with problems related to law, commerce, accountancy, industry, etc.
• A member shall not have less than 10 years’ experience and have a bachelor’s degree from a recognised university and shall not be less than 35 years of age.

Term of office (Section 43):

Every member of the State Commission shall hold office for 4 years or up to the age of 65 years, whichever is earlier, and he shall be eligible for re-appointment.

(President: up to the age of 67 years).

Terms and Conditions of Service (Section 43):

• The salary or other allowances payable to, and the other terms and conditions of the service of the members of the State Commission shall be such as may be prescribed by the State Government.
• Vacancy – a vacancy in the office of president or a member may occur after the expiry of his tenure, or by his death, resignation or removal.

Jurisdiction (Section 47):

1. Territorial Jurisdiction – A suit can be filed in State Commission, within whose local limits: -

1. The party against whom the claim is made actually or voluntarily, resides or carries in business or personally works for gain.
2. Where there are more than one opposite party and any such party actually or voluntarily, resides or carries on business or personally works for gain.
3. The cause of action wholly or partially arises.

2. Appellate Jurisdiction – State Commission has powers to adjudicate upon the appeals made upon the orders of District Commission. Any person aggrieved by any order made by District Commission, may prefer an appeal against such order within 45 days from the date of the order. However, the State Commission may entertain an appeal after the expiry of 45 days, if it is satisfied that there was sufficient cause for delay.
3. Pecuniary Jurisdiction –

• As per CPA, 1986: 20 lakhs – 1cr.
• As per CPA, 2019: 1 cr. - 10 cr.
• Revised rules, 2021: 50 lakhs – 2cr.

Appointing Authority:

President of a State Commission is appointed by the State Government, after consultation with the Chief Justice of the High Court.

National Commission

Establishment (Section 53):

53(1) - The central government shall by notification, establish a National Consumer Dispute Redressal Commission, to be known as the National Commission.

53(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.

Composition (Section 54):

The National Commission shall consist of: -

1. A president.
2. Members not less than 4 and not more than such number as may be prescribed.

Qualification and Appointment of the President of National Commission [Section 55(1)]:

A person shall be qualified for appointment as President of the National Commission, if he: -

1. Is, or has been a judge the Supreme Court; or
2. Is, or has been, Chief Justice of High Court.

The President of the National Commission shall be appointed by the Central Government on the recommendation of a search-cum-selection committee, consisting of the following:

1. Chief Justice of India / any judge of the Supreme Court nominated by him. (Chairperson).
2. The outgoing President of the National Commission. (Member).
3. Secretary to the Government of India, Minister of consumer affairs, food and public distribution. (Member).
4. Secretary to the Government of India, Ministry of Commerce (Department of Promotion of Industry and Internal Trade) – Member.

Qualification and Appointment of the Members:

A person shall not be qualified for appointment as a member, unless he: -

1. Is or has been a judge of High Court; or
2. Has, for a combined period of 10 years, been a DJ/ADJ; or
3. Is a person of ability, integrity, and standing and having special knowledge of, and professional experience of not less than 25 years, in economics, business, commerce, law, finance, accountancy, etc. which is useful to the National Commission.

Term of Office [Section 55(2)]:

President – for a term of 4 years or 70 years of age, whichever is earlier.

Members – 4 years or 67 years of age, whichever is earlier.

Jurisdiction [Section 58(1)]:

1. Territorial Jurisdiction – The territorial jurisdiction of the National Commission is of whole India.
2. Appellate Jurisdiction – The National Commission has jurisdiction to entertain appeals against the order of any State Commission. The appeal may be made within 30 days from the date of the order of the State Commission. However, the National Commission may entertain an appeal filed after the expiry of 30 days, if it is satisfied that there was sufficient cause for not filing an appeal within 30 days.
3. Pecuniary Jurisdiction –

• As per CPA, 1986: above 1cr.
• As per CPA, 2019: above 10cr.
• Revised Rules, 2021 – above 2cr.

Appointing Authority:

The President is appointed by the Central Government after consultation with the Chief Justice of India.

The appointment of other members of the National Commission is made by the Central Government on the recommendation of the selection committee, consisting of the following: -

1. A person who is a judge of the Supreme Court, to be nominated by the CJI. (Chairman).
2. The secretary in department of legal affairs in the Government of India, (Member).
3. The secretary of department dealing with consumer office in the Government of India.

Powers of Consumer Forum (Exercised by All Commissions)

All commissions have the powers of a Civil Court under the Code of Civil Procedure (CPC), 1908, regarding:

1. Summoning and enforcing the attendance of any defendant/witness and examining the witness on oath.
2. Discovery and production of any document or material object as evidence.
3. Receiving evidence on affidavit.
4. Any other matter which may be prescribed.
5. Obtaining information required for the purpose of the proceeding from any person.
6. Enter and search any premises.