Consumer Protection Act, 2019 – ss.34(1), 47(1)(a)(i) and 58(1) (a)(i) – Constitution of India – Art.246 and Entry 95 of List I read with Entries 11-A and 46 of List III – Power to determine pecuniary jurisdiction:
Held: There is no doubt about the fact that the Parliament has the legislative competence to enact the Consumer Protection Act, 2019 – Under Entry 95 of List I r/w. Entries 11-A and 46 of List III and in exercise of power under Article 246, the Parliament has enacted the Consumer Protection Act, 2019 – The legislative competence to prescribe jurisdiction and powers of a court, coupled with the power to constitute and organize courts for administration of justice, takes within its sweep the power to prescribe pecuniary limits of jurisdiction of the courts or tribunals – Parliament has the legislative competence to prescribe jurisdiction and powers of courts – This power extends to prescribing different monetary values as the basis for exercising jurisdiction. [Paras 9, 9.1] Consumer Protection Act, 2019 – ss.34(1), 47(1)(a)(i) and 58(1) (a)(i) – Contract Act, 1872 – Constitution of India – Art.14 – Whether ss.34, 47 and s.58 are violative of Article 14 of the Constitution.
Held: No – Classification based on value of goods or services on the basis of the amount paid as consideration is valid – “Consideration” is an integral part of forming any contract – It is also an integral part of the definition of a ‘consumer’ – It is in recognition of the first principles of formation of a contract that s.2(7) of the 2019 Act defines a consumer as any person who buys any goods or hires or avails any service for a consideration – The consideration could be in the present or future, in whole, part, or by deferred payment – Whichever be the mode, there must be a consideration – That is essential to be a consumer – Therefore, vesting jurisdiction in the district, state or national commission on the basis of value of goods or services paid as ‘consideration’, is neither illegal nor discriminatory – The determination of jurisdiction of the district, state or national commissions on the basis of value of consideration paid for purchase of goods and services has rational nexus to the object of provisioning hierarchy of judicial remedies – The relief or compensation that a consumer could claim remained unrestricted and at the same time, access to the state or the national commission is also not taken away – It is well settled that there is no right or a privilege of a consumer to raise an unlimited claim of compensation and thereby chose a forum of his choice for instituting a complaint – Thus, the classification of claims based on value of goods and services paid as consideration has a direct nexus to the object of creating a hierarchical structure of judicial remedies through tribunals. [Paras 10.2, 10.4, 11, 11.1] Contract Act, 1872 – Essentials of a Contract – Discussed. [Para 10.3]
Statute – Performance Audit of the Statute:
Held: Legal reform through legislative correction improves the legal system and it would require assessment of the working of the law, its accessibility, utility and abuse as well – The Executive branch has a constitutional duty to ensure that the purpose and object of a statute is accomplished while implementing it – It has the additional duty to closely monitor the working of a statute and must have a continuous and a real time assessment of the impact that the statute is having – Reviewing and assessing the implementation of a statute is an integral part of Rule of Law – The purpose of such review is to ensure that a law is working out in practice as it was intended – If not, to understand the reason and address it quickly – It is in this perspective that this Court has, in a number of cases, directed the Executive to carry a performance/assessment audit of a statute or has suggested amendments to the provisions of a particular enactment so as to remove perceived infirmities in its working. [Para 12.4]
Consumer Protection Act, 2019 – ss.3, 10 – Central Consumer Protection Council – Central Consumer Protection Authority – Directions for measures necessary for effective and efficient redressal and working of the statute:
Held: The Council and Authority being statutory authorities having clear purpose and objects and vested with powers and functions must act effectively and in complete coordination to achieve the preambular object of the statute to protect the interest of consumers – As they are impressed with statutory duty, their functioning will be subject to judicial review – Vibrant functioning of the Council and the Authority will subserve the purpose and object of the Parliament enacting the 2019 legislation – Central Consumer Protection Council and the Central Consumer Protection Authority shall in exercise of their statutory duties u/ss.3, 5, 10,
18 to 22 take such measures as may be necessary for survey, review and advise the government about such measures as may be necessary for effective and efficient redressal and working of the statute. [Paras 12.17, 13]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan Id. See para 23.. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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