E-Paper
‘Old consumer cases won’t be transferred’
Old cases will be decided in accordance with 1986 Act, a Supreme Court bench clarified
The Supreme Court on Tuesday ruled that national and state consumer commissions shall decide old consumer complaints pending before them in terms of the monetary jurisdiction fixed under the 1986 Consumer Protection Act.
Clarifying an important point of law, the bench of justices Dhananjay Y Chandrachud and MR Shah held that only such cases filed on or after July 20, 2020—when the new consumer protection law (2019 Act) was notified—should be dealt with as per the new law while the old cases will be decided in accordance with the 1986 Act.
Under the 2019 law, a district forum can decide a consumer dispute up to ₹1 crore as against ₹20 lakh under the old law. Similarly, pecuniary jurisdiction of state commission has been enhanced from ₹1 crore to ₹10 crore, and a national commission can now decide disputes over and above ₹10 crore.
After the new law was notified, pending cases were also transferred from state consumer commissions to district forums and from national commissions to state consumer commissions depending on the monetary worth of the dispute involved.
Petitioner Neena Aneja approached the Supreme Court after her consumer complaint against Jai Prakash Associates was sought to be transferred by the national commission to the Delhi state consumer commission since the dispute involved less than ₹10 crore.
Advocate P Vinay Kumar, appearing for Aneja, pointed out that the complaint was filed before the national commission on June 18, 2020 whereas the new law came into force with effect from July 20, 2020. Kumar submitted that since the consumer complaint was filed before the 2019 law came into force, the pecuniary jurisdiction to entertain the complaint had to be determined with reference to the provisions of the 1986 Act, and hence, continued to vest with the national consumer commission.
The bench found substance in the petition and set aside the order of the national commission that the previously instituted cases as per the 1986 Act should be transferred to the respective fora as per the new pecuniary jurisdiction under the 2019 Act.
The top court directed that no such transfer shall take place and the old cases shall be decided by the consumer court in accordance with the jurisdiction fixed by the old law.
Another bench in the top court recently asked the Centre whether a “legislative impact study” was carried out before a new consumer protection law was notified in July 2020.
