Consumer Protection Act Section 47 — Jurisdiction of State Commission

CHAPTER IV CONSUMER DISPUTER REDRESSAL COMMISSION

Civil

Summary

Sub-section (1) sets out the matters the State Commission can handle. Under clause (a), it can take up complaints where the value of goods or services paid as consideration is more than one crore rupees but not more than ten crore rupees, though the Central Government may prescribe a different value if it thinks necessary. It can also take up complaints against unfair contracts where the value of goods or services paid as consideration does not exceed ten crore rupees, and it can hear appeals against orders of any District Commission within the State. Under clause (b), the State Commission can call for records and pass appropriate orders in any consumer dispute pending before or decided by a District Commission within the State, if it appears that the District Commission exercised a jurisdiction not vested in it by law, failed to exercise a jurisdiction so vested, or acted illegally or with material irregularity.

Sub-section (2) says that the State Commission's jurisdiction, powers, and authority may be exercised by Benches, and a Bench may be formed by the President with one or more members as the President thinks fit. The senior-most member is to preside over the Bench.

Sub-section (3) deals with disagreements among Bench members. If members differ on any point, the point is decided by the majority opinion, if there is a majority. If the members are equally divided, they must state the points on which they differ and refer the matter to the President, who will either hear the point or points himself or refer the case for hearing on those points by one or more other members. The point or points are then decided by the majority of the members who heard the case, including those who first heard it. The President or the other members must give their opinion on the referred points within one month from the date of the reference.

Sub-section (4) specifies where a complaint can be filed in a State Commission. Under clause (a), it can be filed within the limits of whose jurisdiction the opposite party, or each of the opposite parties if there are more than one, ordinarily resides, carries on business, has a branch office, or personally works for gain at the time of instituting the complaint. Under clause (b), if there are multiple opposite parties, it can be filed where any one of them actually and voluntarily resides, carries on business, has a branch office, or personally works for gain at the time of instituting the complaint, provided the State Commission gives permission. Under clause (c), it can be filed where the cause of action, wholly or in part, arises. Under clause (d), it can be filed where the complainant resides or personally works for gain.

Official Text

(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.