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Mercantile Laws – II

Notes Jurisdiction of District Forum

Section 11 provides for the jurisdiction of the District Forum under two criteria pecuniary and
territorial.

Pecuniary Limits

Section 11(1) empowers the District Forum to entertain complaints where the value of goods or
services and the compensation, if any, claimed does not exceed rupees twenty lakhs.
Territorial Limits

Section 11(2) requires a complaint to be instituted in the District Forum within the local limits of
whose jurisdiction the opposite party or the defendant actually and voluntarily resides or carries
on business or has a branch office or personally works for gain, at the time of institution of the
complaint; or any one of the opposite parties (where there are more than one) actually and
voluntarily resides or carries on business or has a branch office or personally works for gain, at
the time of institution of the complaint, provided that the other opposite party/parties acquiesce
in such institution or the permission of the Forum is obtained in respect of such opposite parties;
or the cause of action arises, wholly or in part.
In the case of Dynavox Electronic Pvt. Ltd. v. B.J.S. Rampuria Jain College, Bikaner (Appeal No. 4/89
before the Rajasthan CDRC), it was held that where in a contract, the machinery was supplied
and installed at a particular place, a part of cause of action would be deemed to have arisen at
that place, therefore, the complaint could be instituted in the District Forum within whose
jurisdiction that place falls.

Section 16 of the Act empowers the State Government to establish the State Consumer Disputes
Redressal Commission consisting of:

State Commission

Section 16 of the Act empowers the State Government to establish the State Consumer Disputes
Redressal Commission consisting of:
(a) a person who is or has been a judge of a High Court appointed by the State Government (in
consultation with the Chief Justice of the High Court) who shall be its President.
(b) not less than two and not more than such number of members, as may be prescribed, one of
whom shall be a woman, who shall have the following qualifications, namely:
(i) be not less than thirty-five years of age,
(ii) possess a bachelor’s degree from a recognised university, and

(iii) be persons of ability, integrity and standing, and have adequate knowledge and experience
of at least ten years in dealing with problems relating to economics, law, commerce, accountancy,
industry, public affairs or administration.
Provided that not more than fifty per cent of the members be from amongst persons having a
judicial background. “Persons having judicial background” shall mean persons having
knowledge and experience for at least a period of ten years as a presiding officer at the district
level court or any tribunal at equivalent level.

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