6.2 Other

Composition, Jurisdiction, and Procedure of State Consumer Disputes Redressal Commission under Law of Tort

• The State Consumer Disputes Redressal Commission (State Commission) is a quasi-judicial body established under the Consumer Protection Act, 2019, which plays a pivotal role in protecting consumers' rights through alternate dispute resolution.
• It functions within the framework of the Law of Tort in consumer disputes involving goods and services.
• Below is a detailed explanation of the composition, jurisdiction, and procedure of the State Commission, supported by relevant keywords and real case studies.

Composition of State Consumer Disputes Redressal Commission

Structure:

• The Commission consists of a President and a minimum of two other members, as prescribed by the State Act.
• The President must be a person who is or has been a judge of a High Court.
• Other members should be at least 35 years old, hold a bachelor's degree from a recognized university, and possess ability, integrity, standing, and at least 10 years of expertise in fields such as law, accountancy, commerce, economics, industry, public affairs, or administration.

Appointment:

• Members are appointed by the State Government.
• The appointment of the President is made in consultation with the Chief Justice of the State High Court.
• Members hold office for a term of 5 years or until the age of 67, whichever comes earlier, and can be reappointed subject to conditions.

Judicial and Non-Judicial Members:

• Not more than 50% of the members are from the judicial background; the rest have expertise in related fields.

Remuneration and Conditions:

• Salaries, allowances, and service terms are regulated and prescribed by the State Government.

Jurisdiction of State Consumer Disputes Redressal Commission

Pecuniary Jurisdiction:

• The State Commission entertains complaints where the value of goods or services and compensation claimed is more than ₹50 lakh but less than ₹2 crores.
• Complaints involving values below ₹50 lakh fall under the District Commission, and those exceeding ₹2 crores are under the National Commission.

Territorial Jurisdiction:

• The Commission has jurisdiction within the respective State or Union Territory where it operates.

Subject Matter Jurisdiction:

• The Commission addresses complaints related to:
• Deficiency in goods or services
• Unfair or restrictive trade practices
• Violation of consumer rights
• And any compensation claims arising from such issues.

Additional Powers:

• The State Commission has powers equivalent to a civil court, including:
• Summoning and enforcing attendance of witnesses,
• Requiring the discovery and production of documents,
• Receiving evidence on affidavits,
• Issuing commissions for examination of witnesses,
• Reviewing its decisions or orders.

Procedure of State Consumer Disputes Redressal Commission

Filing of Complaints:

• Complaints can be filed electronically using the E-Daakhil portal, enabling easy access and digital dispute resolution.
• The complaint must include details of the goods or services, nature of deficiency, unfair trade practices, or compensation sought.

Notice to Opposite Party:

• Upon receipt, the Commission issues a notice to the opposing party requiring a response within a specified time.

Hearings:

• The Commission conducts hearings where both parties present evidence and arguments.
• Hearings may be done via video conferencing or other electronic means.

Time Frame for Resolution:

• If no product testing or analysis is required, disputes should be resolved within 3 months of notice receipt.
• If testing or analysis is necessary, the resolution timeframe extends to 5 months.

Orders and Compensation:

• In case of proven grievances, the Commission can order the defendant to:
• Remove defects or replace goods,
• Refund the price with interest,
• Pay compensation for loss or injury,
• Discontinue unfair trade practices,
• Stop the sale or manufacture of hazardous goods.

Appeals:

• Appeals against the orders of District Commissions are directly filed in the State Commission.
• Further appeals from the State Commission's orders lie before the National Consumer Disputes Redressal Commission.

Penalties and Offenses:

• Manufacturers or service providers indulging in malpractice can face penalties such as fines up to ₹10 lakhs or imprisonment up to 2 years, or both under the Act.

Real Case Studies Demonstrating State Commission's Role

Karnataka Power Transmission Corporation Ltd. vs. Ashok Iron Works Pvt Ltd.

• Facts: Complaint about delayed electricity supply causing business loss.
• Issue: Whether the supply of electricity constituted a "service" under the Consumer Protection Act.
• Judgment: The Supreme Court held that electricity supply is a service and the complainant qualifies as a consumer. The case was remanded to the district forum for trial based on this jurisdictional understanding.
• Significance: Recognized the ambit of the Act's protection in commercial supply of services, reinforcing State Consumer Commission jurisdiction in disputes involving services.

Hindustan Safety Glass Works Ltd. vs. National Insurance Company

• Facts: Insurance company denied compensation for damage citing late claim.
• Judgment: The National Commission ordered the insurance company to pay compensation with interest.
• Demonstrates the Commission's role in enforcing contractual obligations in consumer transactions and issuing relief.

Indian Medical Association vs. V.P. Shantha and Others

• Although initially decided by higher fora, this case influences the consumer commissions by clarifying services by medical professionals fall under the Consumer Protection Act, expanding State Commission jurisdiction over medical negligence cases.

Conclusion

• The State Consumer Disputes Redressal Commission is a crucial quasi-judicial body equipped with necessary composition, jurisdiction, and procedural powers to protect consumer rights effectively under the Law of Tort framework.
• It addresses grievances involving goods and services with pecuniary limits set between ₹50 lakh and ₹2 crores.
• The Commission’s processes emphasize speedy and just resolution through digital means and civil court-like powers.
• Landmark cases have strengthened its jurisdictional scope and ability to enforce consumer protection, ensuring fair trade practices and accountability, thus playing a vital role in upholding consumer justice in India.
• This institutional mechanism balances judicial expertise with domain-specific knowledge, making it a specialized forum that upholds consumer rights through effective dispute redressal and enforcement within the purview of tortious liabilities for service deficiencies and product defects.