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Unit 13: Consumer Protection Act

A person shall be disqualified for appointment as a member if he: Notes
(a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of
the State Government involves moral turpitude; or

(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) has been removed or dismissed from the service of the Government or a body corporate
owned or controlled by the Government; or
(e) has in the opinion of the State Government, such financial or other interest, as is likely to
affect prejudicially the discharge by him of his functions as a member; or

(f) has such other disqualification as may be prescribed by the State Government.
Every appointment shall be made by the State Government on the recommendation of a Selection
Committee consisting of the President of the State Commission, Secretary Law Department of
the State and Secretary in charge of Consumer Affairs in the State. The proviso to this clause
states that where the President of the State Commission is, by reason of absence or otherwise,
unable to act as Chairman of the Selection Committee, the State Government may refer the
matter to the Chief Justice of the High Court for nominating a sitting Judge of that High Court
to act as Chairman. Section 16(2) empowers the State Government to decide on the salary or
honorarium and other allowances payable to the members of the State Commission and the
other terms and conditions of service.
Every member of the State Commission shall hold office for a term of five years or upto the age
of sixty-seven years, whichever is earlier and shall be eligible for reappointment for another
term of five years or upto the age of sixty-seven years, whichever is earlier, subject to the
condition that he fulfills the qualifications and other conditions for appointment mentioned in
Section 16(1)(b) and such reappointment is made on the basis of the recommendation of the
Selection Committee.
Jurisdiction of State Commission

Section 17 of the Act provides for the jurisdiction of the Commission as follows:
(a) the State Commission can entertain complaints where the value of the goods or services and
the compensation, if any claimed exceed rupees twenty lakhs but does not exceed rupees one
crore;
(b) the State Commission also has the jurisdiction to entertain appeals against the orders of any
District Forum within the State. However, under second proviso to Section 15 no appeal by a
person, who is required to pay any amount in terms of an order of the District Forum, shall be
entertained by the State Commission unless the appellant has deposited in the prescribed manner
fifty percent of the amount or rupees twenty-five thousand, whichever is less;
(c) the State Commission also has the power to call for the records and pass appropriate orders
in any consumer dispute which is pending before or has been decided by any District Forum
within the State, if it appears to it that such District Forum has exercised any power not vested in
it by law or has failed to exercise a power rightfully vested in it by law or has acted illegally or
with material irregularity.

A complaint shall be instituted in a State Commission within the limits of whose jurisdiction, -
(a) the opposite party or each of the opposite parties, where there are more than one, at the time
of the institution of the complaint, actually and voluntarily resides or carries on business or has
a branch office or personally works for gain; or

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