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Corporate Legal Framework

Notes Transfer of cases: Section 22 B provides that on the application of the complainant or of its
own motion, the National Commission may, at any stage of the proceeding, in the interest
of justice, transfer any complaint pending before the District Forum of one state to a District
Forum of another state or before one State Commission to another State Commission.
Circuit Benches: Section 22 C provides that the National Commission shall ordinarily
function at New Delhi and perform its functions at such other place as the Central
Government may notify from time to time.
Vacancy in the office of the President: Section 22 D provides that when the office of the President

of a District Forum, State Commission, or of the National Commission, as the case may be,

is vacant or a person occupying such office is, by reason of absence or otherwise, unable to
perform the duties of his office, these shall be performed by the senior-most member of the

District Forum, the State Commission, or of the National Commission, as the case may be.
Do Consumer Forums have the Right to Grant Interim Stay
(Temporary Injunction)

The Supreme Court in Morgan Stanley Mutual Fund v Karick Das and Dr Arvind Gupta v SEBI and
Others (II 1994 CPJ 7) held that consumer forums do not have any power to pass any interim
order. It ruled that under s.14 relief by way of ad-interim stay was not at all contemplated.
Therefore, the forums granting any stay by way of interim order would be acting beyond their
jurisdiction under the Act. The Amendment Act, 2002 however, has provided for issue of interim
orders by redressal agencies.
Appeal to the Supreme Court against the Orders of National Commission

Any person, aggrieved by an order made by the National Commission, may prefer an appeal
against such order to the Supreme Court, within a period of 30 days from the date of the order.
However, Supreme Court may entertain an appeal after the expiry of the said period of 30 days

if it is satisfied that there was sufficient cause for not filing it within that period [s.23].

No appeal by a person who is required to pay any amount in terms of an order of the National
Commission shall be entertained by the Supreme Court unless that person has deposited 50 per
cent of that amount or ` 55000 whichever is less.
Finality of Orders (S.24)

Every order of a District Forum, the State Commission or the National Commission shall, if no
appeal has been preferred against such order under provisions of the Act, be fi nal.

Limitation Period (S.24A)

The District Forum, the State Commission or the National Commission shall not admit a

complaint unless it is filed within two years from the date on which the cause of action has
arisen.

However, a complaint may be entertained after the specified period of two years if the

complainant satisfies the District Forum, the State Commission or the National Commission, as

the case may be, that he had sufficient cause for not filing the complaint within such period. But,
no such complaint shall be entertained unless the District Forum, the State Commission or the
National Commission, as the case may be, records its reasons for condoning such delay.

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