The pecuniary jurisdiction of a consumer commission is an important criterion for determining which consumer commission a complainant can approach to file a consumer complaint.
The Central Government of India appointed the 20th day of July 2020 as the date on which substantial provisions of the Consumer Protection Act, 2019 were enforced across Bharat. Thus, the principles of pecuniary jurisdiction in the consumer commissions also underwent significant modification on the effective date of implementation of the Act 2019.
There are two important parameters considered common for all the consumer commissions while deciding the pecuniary jurisdiction of the consumer commissions prior to the enactment of the Consumer Protection Act, 2019.
- Value of Goods or Services paid as consideration
- Claimed Compensation
However, following the implementation of the Act of 2019, the determination of pecuniary jurisdiction hinges solely on a single parameter: the value of the goods or services paid as consideration.
This fundamental shift effectively eliminated the practice of sometimes claiming exorbitant compensation amounts primarily to invoke the jurisdiction of higher commissions, such as the State or National Commission. The focus is now firmly placed on the actual transaction value.
Further, the Consumer Protection Act, 2019, brings a new scope of jurisdiction for the consumer commissions to entertain complaints against unfair contracts. If a consumer alleges that a contract itself is unfair and seeks its annulment, the jurisdiction is determined as follows:
- State Commission: Applicable when the value of goods or services paid as consideration does not exceed ₹10 crore.
- National Commission: Applicable when the value of goods or services paid as consideration exceeds ₹10 crore.
1.1 Initial Threshold Limits for Determining the Pecuniary Jurisdiction of the Consumer Commissions:
Sections 34, 47, and 58 disclose the monetary limits of the value of goods or services paid as consideration for determining the respective pecuniary jurisdiction of the district consumer commission, state consumer commission, and national consumer commission.
Section 34. Jurisdiction of District Commission.
(1) Subject to the other provisions of this Act, the District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed one crore rupees:
Provided that where the Central Government deems it necessary so to do, it may prescribe such other value, as it deems fit.
Section 47. Jurisdiction of State Commission.
(1) Subject to the other provisions of this Act, the State Commission shall have jurisdiction–
(a) to entertain–
(i) complaints where the value of the goods or services paid as consideration, exceeds rupees one crore, but does not exceed rupees ten crore:
Provided that where the Central Government deems it necessary so to do, it may prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid as consideration does not exceed ten crore rupees;
Section 58. Jurisdiction of National Commission
(1) Subject to the other provisions of this Act, the National Commission shall have jurisdiction–
(a) to entertain–
(i) complaints where the value of the goods or services paid as consideration exceeds rupees ten crore:
Provided that where the Central Government deems it necessary so to do, it may prescribe such other value, as it deems fit;
(ii) complaints against unfair contracts, where the value of goods or services paid as consideration exceeds ten crore rupees;
The above provisions of the sections 34, 47 and 58 can be summarized in the following manner in respect of pecuniary jurisdiction of the consumer commissions.
1.2 Amended Pecuniary Limits for deciding the pecuniary Jurisdiction of the Consumer Commissions
The Government of India, as per its notification dated 31 August 2021, has revised the pecuniary jurisdictions of consumer forums, inclusive of various district forums, state consumer forums, and the national consumer forum, with respect to the pecuniary value of the consideration paid to the product manufacturer or service provider. There is no change in the pecuniary jurisdiction for raising a complaint against unfair contracts.
1.2.1 Revised Pecuniary Jurisdiction of District Consumer Commission
As per the notification dated 31-August-2021, district consumer commissions can adjudicate consumer complaints in which the complainant has paid consideration of up to Rupees 50 lakhs. Previously, the limit was set at Rupees one crore. This means that if you have purchased a product or service and paid an amount not exceeding Rupees 50 lakhs, you can invoke the pecuniary jurisdiction of the district consumer commission.
1.2.2 Revised Pecuniary Jurisdiction of State Consumer Commission
The state consumer commission can now adjudicate matters where the consideration paid is greater than Rupees 50 lakhs but does not exceed Rupees 2 crore. Previously, it was up to Rupees 10 crores. This means that if you purchased a product or service and paid consideration between Rupees 50 lakhs and Rupees 2 crores, you can file a consumer complaint with the state consumer forum.
1.2.3 Revised Pecuniary Jurisdiction of National Consumer Commission
The National Consumer Commission has the authority to adjudicate consumer complaints where the consideration paid exceeds Rupees 2 crores. Previously, this threshold was over 10 crores. Therefore, if you have purchased a product or service valued at more than Rupees 2 crores and are dissatisfied with it, you can lodge a complaint with the national consumer forum.
1.3 Importance of Pecuniary Jurisdiction
The concept of pecuniary jurisdiction holds significant practical importance for all parties involved in a consumer dispute:
1.4 From the Complainant's Perspective:
Selecting the correct commission based on the transaction value is paramount. Filing a complaint in a commission lacking the necessary pecuniary jurisdiction can result in its dismissal, leading to wasted time, effort, and potential delays in obtaining relief. Adhering to the jurisdictional limits ensures the case is heard by the appropriately designated forum, streamlining the process and avoiding preliminary procedural roadblocks. It allows the complainant to focus on the substantive merits of their grievance.
1.5 From the Opponent's Perspective:
Clear pecuniary limits provide predictability for businesses and service providers. Knowing the value thresholds helps them anticipate which level of commission (District, State, or National) they might potentially face for different transaction values. This allows for better strategic planning regarding legal representation, resource allocation, and potential liability assessment. It prevents forum shopping by complainants based on inflated claims (as was possible previously) and ensures that disputes are adjudicated at the level intended by the legislative framework.
1.6 Conclusion
The pecuniary jurisdiction framework, as established by the Consumer Protection Act, 2019 and subsequently amended in 2021, serves as a foundational element for navigating the consumer dispute redressal system in India. By simplifying the jurisdictional basis to the ‘value of goods or services paid as consideration,’ the law aims for greater clarity and efficiency, directing complainants to the appropriate commission—District, State, or National. This structured approach, including the specific provisions for unfair contracts, benefits both consumers seeking remedies and businesses responding to claims by minimizing procedural errors related to jurisdiction. Understanding and correctly applying these monetary thresholds is the essential first step for initiating a consumer complaint and ensuring the competent authority reviews it.
Frequently Asked Questions (FAQs) - Pecuniary Jurisdiction of Consumer Commissions
Here are some common questions about the monetary limits (pecuniary jurisdiction) for filing consumer complaints in India:
Q1: What is pecuniary jurisdiction in consumer complaints?
A: Pecuniary jurisdiction refers to the maximum financial value of a case that a specific consumer commission (District, State, or National) is allowed to handle. It’s based on the price you paid for the goods or services.
Q2: How is pecuniary jurisdiction decided now under the Consumer Protection Act, 2019?
A: It’s decided only based on the actual value of the goods or services you paid for as consideration. The amount of compensation you are claiming is no longer considered for deciding which commission to approach.
Q3: What is the current pecuniary jurisdiction limit for a District Consumer Commission in India?
A: A District Consumer Commission can handle complaints where the value of goods or services paid is up to ₹50 Lakhs (Rupees Fifty Lakhs). This limit was revised in August 2021.
Q4: When should I file a complaint with the State Consumer Commission?
A: You should approach the State Consumer Commission if the value of goods or services you paid for is more than ₹50 Lakhs but does not exceed ₹2 Crore (Rupees Two Crore).
Q5: What is the pecuniary jurisdiction of the National Consumer Commission?
A:The National Consumer Commission deals with complaints where the value of goods or services paid is more than ₹2 Crore (Rupees Two Crore).
Q6: Did the pecuniary jurisdiction limits change recently?
A: Yes, the limits were revised by the government notification dated August 31, 2021. The limits for District, State, and National commissions were updated based on the value of consideration paid.
Q7: Can I file a complaint about an unfair contract? Which commission handles it?
A: Yes. For unfair contracts:
- If the value of goods/services paid is up to ₹10 Crore, file with the State Commission.
- If the value of goods/services paid is more than ₹10 Crore, file with the National Commission. (Note: The District Commission does not have specified jurisdiction for unfair contract complaints based on the Act).
Q8: What happens if I file my complaint in the wrong commission based on pecuniary jurisdiction?
A: If you file your complaint in a commission that does not have the correct pecuniary jurisdiction (i.e., the value is too high or too low for that commission), your case might be dismissed or returned, and you will have to refile it in the appropriate commission, causing delays.