Page 265 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes (b) any 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, provided that in such case either the permission of the State
Commission is given or the opposite parties who do not reside or carry on business or have a
branch office or personally work for gain, as the case may be, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises

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Caution The State Commission’s jurisdiction may be original, appellate or revisional. In
respect of (c) above, the State Commission may reverse the orders passed by the District
Forum on any question of fact or law or correct any error of fact or of law made by the
Forum.
The National Commission in Indian Airlines v. Consumer Education and Research Society, (1992)
CPR 4 (NC) held that in respect of the original jurisdiction of the State Commission, Section 17
only prescribes pecuniary limits. No territorial limits have been fixed for the exercise of original
jurisdiction under the Act though the provision contained in Section 11(2) of the Act apply
mutatis mutandis in the matter of entertaining original complaints by the State Commission. The
territorial jurisdiction of the State Commission therefore extends to the territorial limit of the
State. In the exercise of its appellate jurisdiction, the State Commission may entertain appeals
only against the orders of any District Forum within the State. Similar condition also applies in
respect of the State Commissions power to revise orders of the District Forums - only orders of
the District Forum within the State may be subject to revision by the State Commission.

Transfer of Cases

Section 17A empowers the State Commission on the application of the complainant or of its own
motion to transfer, at any stage of the proceeding any complaint pending before the District
Forum to another District Forum within the State if the interest of justice so requires.

National Commission

Section 9 empowers the Central Government to establish the National Consumer Disputes
Redressal Commission, by notification in the Official Gazette. Section 20(1) provides that the
National Commission shall consist of—
(a) a person who is or has been a judge of the Supreme Court, to be appointed by the Central
Government (in consultation with the Chief Justice of India), who shall be its President;
(b) not less than four 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 recognized 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 percent of the members shall be from amongst the persons
having 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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