Law of Torts - II : Previous Year Questions (2022)

PART – A

Q1. What does Complainant mean?

Ans. According to Section 2(5) of the CPA, 2019, Complainant means a consumer and includes any voluntary consumer association registered under any law for the time being in force, or the central government or any state government or one or more consumers, where there are numerous consumers having the same interest or in case of death of a consumer, his legal heir or legal representative, or consumer being a minor, his parents or legal guardian in respect of commodities or services rendered to them.

Q2. What do you mean by Consumer Dispute?

Ans. A consumer dispute is a disagreement between a buyer and a seller/service provider, occurring when a person against whom a complaint is made denies or disputes the allegations, such as defective goods, deficient services, overcharging, or unfair trade practices. It arises when consumer rights are violated, necessitating redressal through consumer courts or arbitration. [In CPA, 2019, Section 2(8) defines consumer dispute].

Q3. What does the term "Person" include?

Ans. According to Section 2(31) of the CPA, 2019, the term "person" includes –

1. an individual;
2. a firm whether registered or not;
3. a Hindu undivided family;
4. a co-operative society;
5. an association of persons whether registered under the Societies Registration Act, 1860 or not;
6. any corporation, company or a body of individuals whether incorporated or not;
7. any artificial juridical person, not falling within any of the preceding sub-clauses.

Q4. Which court has jurisdiction to hear an appeal against the order of National Commission?

Ans. Supreme Court

Q5. What is the maximum punishment for non-compliance of order passed by Consumer Court?

Ans. According to Section 72 of the CPA, 2019:

1. Imprisonment up to 3 years
2. Fine between Rs. 25,000 – Rs. 1 lakh
3. Or both.

Q6. What does "Restrictive Trade Practice" means?

Ans. Restrictive trade practices refer to any trade activities or business policies that hinder competition in the market or obstruct the free flow of capital or resources. Essentially, these are actions taken by companies to manipulate prices, control supply, or eliminate competitors to gain an unfair advantage. For E.g.: Price Fixing, Market Sharing, etc.

Q7. What do you mean by "Bargain Price"?

Ans. Bargain Price refers to a kind of unfair trade practice. Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.

Q8. Who is "Manufacturer"?

Ans. According to Section 2(24) of the CPA, 2019, "manufacturer" means a person who –

1. makes any goods or parts thereof; or
2. assembles any goods or parts thereof made by others; or
3. puts or causes to be put his own mark on any goods made by any other person.

Q9. Mention the monetary jurisdiction of the District Forum.

Ans. Monetary Jurisdiction of the District Forum:

• As per CPA, 1986: up to 20 lakhs.
• As per CPA, 2019: up to 1cr.
• Revised in 2021: up to 50 lakhs.

Q10. In which case the National Commission held that dispute relating to water supply made by the corporation out of its statutory duty and not by virtue of payment of taxes is not a consumer dispute?

Ans. Mayor, Calcutta Municipal Corporation v. Tarapada Chatterjee (1994)

PART – B

Q11. Discus various factors which necessitated the emergence of the Consumer Protection Act, 1986. [CPA, 2019 in present context]

Ans. The Consumer Protection Act (CPA), 2019, replaced the three-decade-old 1986 Act to better address the complexities of the modern digital age. While the 1986 Act laid the foundation, the 2019 version was necessary to tackle the rise of e-commerce, telemarketing, and sophisticated deceptive branding.

Necessities for CPA, 2019

The 2019 Act wasn't just an update; it was a structural overhaul. Here is how it addresses modern necessities:

Difference between CPA, 1986 and CPA, 2019

Q12. Differentiate between 'Contract of Service' and 'Contract for Service'.

Ans. There is a fine legal distinction between a contract for services and a contract of service:

• Contract for Services: (Consumer Category) You hire a professional (like a doctor or a plumber) to do a job.
• Contract of Service: (Excluded) This refers to a master-servant or employer-employee relationship. An employee cannot sue their employer under the CPA for issues related to their employment.

When we talk about service under CPA, we take it as a regular transaction. Thus, the service rendered under the contract of personal service are specifically excluded from the deficiency of service.

The term ‘contract of personal service’ is not defined under the act. In common, it means a contract to render service in private capacity to individuals.

Example:

1. Where a landlord agrees to supply water to his tenant.
2. Where a servant enters into a contract with a master for employment.

In contract of personal service, the service seeker can order or require what is to be done and how it should be done.

Example: like a master can tell his servant to bring goods from a particular place.

But in a contract for personal service, the service seeker can tell only what is to be done. How the work will be done is at the wish of the service provider.

In CPA, contract ‘for’ personal service is considered.

Q13. Can an examinee be a Consumer vis-a-vis? Examining bodies like Board of Secondary Education. with reference to Case Laws.

Ans. No an examinee cannot be a consumer.

In Chairman, Board of Examination, Madras v. Mohidin Abdul Quadin, the board performing a statutory duty (conducting exams) was not seen as "rendering a service" for a consumer.

Imparting education is considered a statutory or charitable function, not a commercial service. The process of conducting examinations, evaluating papers, and awarding degrees is not a service. Conversely, private coaching centres or vocational institutions that are not formal educational boards/universities may be considered providers of service. If an institution is involved in unfair trade practices (e.g., misrepresenting affiliation), they may be held liable.

Case: Km. Shubhangi Tiwari & Richa Tiwari v. Manager, Unison World School

The State Consumer Disputes Redressal Commission, upon reviewing the appeals, set aside the impugned judgment of the District Commission that had previously favoured the appellants. The Commission held that educational institutions do not fall under the definition of 'service providers' as per the Consumer Protection Act, 1986, and that students are not 'consumers.' Consequently, the reliefs sought by the appellants were denied, and the complaint was dismissed.

Case: Deepak Tyagi & 14 Ors. v. Shree Chhatrapati Shivaji Education Society & Anr.

In this case, the National Consumer Disputes Redressal Commission (NCDRC) examined whether students can be treated as “consumers” under the Consumer Protection Act, 1986, and whether educational institutions provide a “service.”

The case involved complaints by students against educational institutions alleging deficiency in service and unfair trade practices, particularly concerning recognition and affiliation of courses. The Commission reviewed conflicting Supreme Court precedents on whether education falls within the scope of consumer law.

The NCDRC ultimately held that core educational activities such as admission, teaching, examinations, and granting degrees, do not constitute “services” under the Consumer Protection Act. Therefore, students generally cannot maintain consumer complaints against educational institutions regarding such academic matters. However, institutions may still be liable in cases involving clear misrepresentation, fraud, or commercial coaching services operating outside traditional educational functions.

The decision relied heavily on Supreme Court rulings such as P.T. Koshy v. Ellen Charitable Trust and Maharshi Dayanand University v. Surjeet Kaur, emphasizing that education is not a commercial commodity.

Q14. Explain the remedies available to under the Consumer Protections Act.

Ans. Section 39 of the CPA, 2019 states that:

Where the District Commission is satisfied that the goods complained against suffer from any of the defects specified in the complaint or that any of the allegations contained in the complaint about the services or any unfair trade practices, or claims for compensation under product liability are proved, it shall issue an order to the opposite party directing him to do one or more of the following, namely: -

1. to remove the defect pointed out by the appropriate laboratory from the goods in question;
2. to replace the goods with new goods of similar description which shall be free from any defect;
3. to return to the complainant the price, or, as the case may be, the charges paid by the complainant along with such interest on such price or charges as may be decided;
4. to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party:

Provided that the District Commission shall have the power to grant punitive damages in such circumstances as it deems fit;

5. to pay such amount as may be awarded by it as compensation in a product liability action under Chapter VI;
6. to remove the defects in goods or deficiencies in the services in question;
7. to discontinue the unfair trade practice or restrictive trade practice and not to repeat them;
8. not to offer the hazardous or unsafe goods for sale;
9. to withdraw the hazardous goods from being offered for sale;
10. to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature;
11. to pay such sum as may be determined by it, if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently:

Provided that the minimum amount of sum so payable shall not be less than twenty-five per cent. of the value of such defective goods sold or service provided, as the case may be, to such consumers;

12. to issue corrective advertisement to neutralise the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement;
13. to provide for adequate costs to parties; and
14. to cease and desist from issuing any misleading advertisement.

Administrative Remedies:

Under the Consumer Protection Act (CPA), 2019, administrative remedies refer to non-judicial, regulatory actions taken by specially established authorities to protect consumer interests, prevent unfair trade practices, and enforce compliance, primarily through executive intervention rather than traditional courtroom litigation.

The most significant administrative remedy introduced by the CPA 2019 is the establishment of the Central Consumer Protection Authority (CCPA).

Key Aspects of Administrative Remedies:

1. Role of the CCPA: The CCPA acts as a regulator to promote, protect, and enforce consumer rights as a class. It can take suo motu action (on its own motion) against violations.
2. Investigation and Inquiry: The CCPA has an Investigation Wing, headed by a Director-General, empowered to conduct inquiries or investigations into consumer rights violations, unfair trade practices, and misleading advertisements.
3. Proactive Orders: Unlike judicial remedies that require a formal lawsuit, the CCPA can directly issue orders to recall hazardous goods or withdraw dangerous services, order reimbursement of prices paid by consumers, and discontinue unfair trade practices and ban misleading advertisements.
4. Penalties and Class Action: The CCPA can impose penalties on manufacturers, endorsers, and publishers of misleading advertisements. It can also file class-action complaints before Consumer Commissions on behalf of consumers.
5. E-commerce Regulations: The CCPA enforces specific e-commerce rules, requiring online platforms to disclose seller details, return/refund policies, and maintain a grievance officer.

Administrative remedies provide a proactive, regulatory approach to consumer protection, enabling swift action against offenders to prevent mass consumer harm, as opposed to the reactive, dispute-settling nature of consumer commissions.

Mediation: The consumer courts may refer consumer disputes for mediation through consumer mediation cells, for faster resolution.

PART – C

Q15. Define the term 'Consumer'. Give its basic concepts as provided under the Consumer Protection Act, 1986. [CPA, 2019 in present context]

Ans. The Consumer Protection Act (CPA), 2019, is a milestone in Indian legislation designed to protect the interests of consumers in an increasingly complex marketplace. At its core, the Act aims to provide a fast-track grievance redressal mechanism. However, to benefit from this "shield," one must first qualify as a "Consumer."

Section 2(7) of the Act defines a consumer, but just as important is understanding who the law excludes. By drawing a line in the sand, the Act ensures it remains a tool for individual protection rather than a forum for resolving complex commercial or industrial disputes.

Who is a consumer?

A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Section 2(7) of the Act defines ‘consumer’ as ANY person who:

1. buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
2. hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration  paid or promised, or partly paid partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose.

The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Beneficiary of Services is also a Consumer

When A hire services from B, may hire it for himself or for any other person. In such a case, the beneficiary (user) of these services is also a consumer.

Example – A takes his son ‘B’ to a doctor for B’s treatment. Here ‘A’ is hirer of services of the doctor and ‘B’ is beneficiary of these services. For the purpose of the act, both A and B are consumers. This is an exception to the rule of Privity of Contract.

Who is NOT a consumer?

Under the CPA 2019, the definition of a consumer is strictly tied to the concepts of consideration (payment) and purpose. A person is excluded from the definition of a "consumer" if they fall into any of the following categories:

1. Persons Obtaining Goods or Services Free of Charge

The bedrock of the consumer-provider relationship is Consideration. If you receive a product as a gift or avail of a service without any payment (current or promised), you are not a consumer.

Example: A patient treated for free in a charitable hospital where no one is charged cannot sue under the CPA (though they may have remedies under Law of Torts for negligence).

2. Persons Obtaining Goods for Resale or Commercial Purposes

The Act is designed to protect the "end-user." If a person buys goods to sell them again or to use them in a large-scale profit-making activity, they are considered a commercial entity, not a consumer.

Exception (Self-Employment): If a person buys a car to use it as a taxi which they drive themselves to earn a living, they are a consumer. If they buy a fleet of 50 taxis to start a company, they are not.

3. Persons Availing Services under a "Contract of Service"

There is a fine legal distinction between a contract for services and a contract of service:

• Contract for Services: (Consumer Category) You hire a professional (like a doctor or a plumber) to do a job.
• Contract of Service: (Excluded) This refers to a master-servant or employer-employee relationship. An employee cannot sue their employer under the CPA for issues related to their employment.

Relevant Case Laws

To understand the nuances, we must look at how the courts have interpreted these exclusions.

1. Franchise Holder is not a Consumer - In The General Manager, Madras Telephones v. R. Kannan, it was held that a franchise holder is an agent of the principal, not a consumer.
2. Purchase Made for Commercial Purpose, the Complainant was not a Consumer -  In Godrej Computers v. International Data Management Ltd., the purchase of a computer for commercial use disqualified the buyer from being a consumer. Similarly, photocopiers or electronic typewriters bought for business use fall outside the CPA’s protection.
3. Student is not a Consumer - In Chairman, Board of Examination, Madras v. Mohidin Abdul Quadin, the board performing a statutory duty (conducting exams) was not seen as "rendering a service" for a consumer.
4. Teachers Employed in Govt. Aided School/College are not Consumer - In Principal, RSM Inter College v. Smt. Rekha, teachers in govt-aided schools were not considered consumers in the context of their employment/service conditions.
5. Sale of Immovable Property can’t be Subject Matter of Complaint under the CPA - In Ravin Bharti Land Development and Finance Pvt. Ltd. v. Punjab National Bank, it was established that the sale of immovable property (land/buildings) does not typically fall under the CPA, as these are governed by specific property laws (and now RERA). [Take note: - the construction service (the act of building the house) is definitely a service. This is why homebuyers can go to Consumer Courts against builders for delays, even with RERA in existence.]
6. Vehicles Possessed under a Hirer Purchase Agreement, Hirer Complainant would not be a Consumer - In Tata Motors Ltd. v. Sant Bahadur Singh, a person possessing a vehicle under a hire-purchase agreement (where ownership hasn't transferred) was found not to be a consumer in that specific context.
7. Complaint by Wife of a Govt. Servant, she is not a Consumer - In Manoranjan Tiwari v. State Govt. of Rajasthan, it was held that the wife of a government servant (complaining about his service conditions/benefits) does not qualify as a consumer.

One thing is plain and clear from the decided cases that what is important to decide is - Whether a particular good is used for commercial purposes or not. If it is used for commercial purpose(s), the buyer/user is not a consumer, and if it is not - the buyer/user is a consumer.

The Consumer Protection Act, 2019 (CPA 2019), serves as the primary legislation for protecting consumer interests in India, replacing the older 1986 Act to address the complexities of the modern marketplace. Central to its application is the concept of "service," which determines whether a person can seek redressal for "deficiency" before Consumer Commissions.

Q16. Discuss in detail the deficiency in Services giving with help of relevant case laws.

Ans. According to section 2(11), deficiency means any fault, imperfection, shortcoming or inadequacy in the quality, nature or manner of performance which is required to be maintained by law or contract.

According to Section 2(42), the term service means service of any description which is made available to potential users and include, but not limited to, the provision of facilities in connection with: -

1. Banking
2. Financing
3. Insurance
4. Transport
5. Processing
6. Supply of electrical or other energy
7. Telecom services
8. House construction
9. Entertainment

But does not include the rendering of any service free of charge or under a contract of personal service.

When we talk about service under CPA, we take it as a regular transaction. Thus, the service rendered under the contract of personal service are specifically excluded from the deficiency of service.

The term ‘contract of personal service’ is not defined under the act. In common, it means a contract to render service in private capacity to individuals.

Example:

1. Where a landlord agrees to supply water to his tenant.
2. Where a servant enters into a contract with a master for employment.

Contract ‘of’ personal service and Contract ‘for’ personal service:

In contract of personal service, the service seeker can order or require what is to be done and how it should be done.

Example: like a master can tell his servant to bring goods from a particular place.

But in a contract for personal service, the service seeker can tell only what is to be done. How the work will be done is at the wish of the service provider.

In CPA, contract ‘for’ personal service is considered.

Essential Elements of Deficiency

To prove a deficiency in service, the following must be established:

1. Imperfection in Quality: The service provided falls below the standard prescribed by law or promised by the provider.
2. Inadequate Performance: Failure to deliver the service in the manner agreed upon (e.g., delays, technical glitches, or incomplete work).
3. Negligence/Omission: Acts of negligence or the deliberate withholding of relevant information that causes loss or injury to the consumer.

Examples of deficiency of services:

1. Inappropriate treatment done by a doctor leading to an increase in patient’s suffering is the deficiency in service.
2. A customer buys a ticket for an AC bus. But the AC of the bus does not work, which is a deficiency of service.

Relevant Case Laws:

1. Gurshinder Singh v. Shriram General Insurance Company Ltd. (2020) [Deficiency in Insurance Service]

In this case, the appellant had got his tractor insured with the respondent. Later, the tractor was stolen and an FIR was lodged on the same day. However, the claim was submitted to the respondent. It was rejected on the ground that intimation was given after a delay of 52 days. The appellant filed a consumer complaint before the District Consumer Forum. Furthermore, on appeal, the Supreme Court held that if there is a mere delay by a person in intimating the insurance company about the theft, this cannot be the ground to repudiate an insurance claim.

2. Bihar State Sugar Corporation Ltd. v. State Bank of India [Deficiency in Banking Service]

In this case, the cheque of the complainant corporation was wrongfully dishonoured despite having sufficient funds in its account. This resulted in complainants not being able to obtain insurance policy. His claim for accidental damages to his factory was rejected by the insurance company causing loss of more than Rs.25 lakhs to the complainant. It was held that there was deficiency in service of the part of bank and the commission awarded 5 lakh rupees by way of damages to the complainant.

3. N. Kunchi Babu v. A.P. Transco [Deficiency in Electricity Service]

In this case, electric wires were touching the balcony of complainant’s house. As a result of which, his minor daughter got electrocuted and became physically disabled. There was failure on the part of Electricity Supply Board to maintain minimum distance as per norms prescribed under the Electricity Act. Held, the deficiency in service was proved, hence complainant was entitled to compensation, cost, and also the medical expenses of his daughter.

4. Lucknow Development Authority v. M.K. Gupta (1994) [Deficiency in Service of House Construction]

In this Case, the complainant had deposited the prescribed amount to the opposite party (LDA) for taking possession of house and the opposite party issued possession later. Although the house was found incomplete, the house was occupied by someone else unauthorised. The complainant was awarded Rs. 3000 per month from the date of cheque of Rs. 22,85,070, to be able to take possession till the date of actual possession of house. The Supreme Court held that development authorities, when providing housing or allotment services, are "service providers" under the Consumer Protection Act.

The Act imposes strict liability on the manufacturer, distributors, suppliers and retailers for causing injurious harm by its defective products or services. Notwithstanding any contractual obligations and limitations of the liability, if a product or any of its components fails to comply with the necessary standards and therefore causing a defect in the product, shall make the manufacturer of the product directly liable for damages under the Act or the common law of negligence. Subsequently, the action can be brought for injury, death or any damages caused to a person or property under the Act due to a defect of the product. This means that there is no need for consumers to prove that the manufacturer was negligent for filing the suit against the manufacturer. The consumer only needs to prove that the defect in the product, the damage or injury was caused to the consumer by the product or service only.

Q17. Discuss the composition and jurisdiction of the State Commission.

Ans. 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):

• It shall consist of a President and at least two other members, one of whom is to be a woman.
• 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 in 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: for 4 years or 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 –

According to,

CPA, 2019: above 1 cr. - 10 cr.

CPA, 1986: 20 lakhs – 1cr.

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.

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.

Conclusion:

The State Commission plays a crucial role in the consumer dispute redressal mechanism by acting as an appellate and original forum for medium-value claims. It ensures effective consumer protection and reduces the burden on the National Commission and District Commissions.

Q18. Discuss in detail about the powers of National Commission and the procedure it is required to follow.

Ans. National Commission as under CPA, 2019:

Establishment (Section 53):

The central government should by notification, establish a National Consumer Dispute Redressal Commission, to be known as the National Commission.

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, at such places 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 –

According to,

CPA, 2019: above 10cr.

CPA, 1986: above 1cr.

Revised Rules, 2021 – above 2cr.

Revisional Jurisdiction:

The National Consumer Disputes Redressal Commission (NCDRC) possesses limited revisional jurisdiction under Section 58(1)(b) of the Consumer Protection Act, 2019. It allows the Commission to review orders from State Commissions only when they have acted outside their legal authority, failed to exercise jurisdiction, or acted with material irregularity.

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.

Conclusion

The National Commission acts as the highest consumer redressal authority in India, ensuring uniformity, fairness, and effective protection of consumer rights. Its wide jurisdiction and judicial powers make it a crucial institution in consumer justice delivery.