District Consumer Disputes Redressal Commission (District Commission) (Section 28)

The Consumer Protection Act, 2019, establishes a three-tier quasi-judicial mechanism for the redressal of consumer disputes. The lowest tier in this structure is the District Consumer Disputes Redressal Commission, commonly known as the District Commission or District Forum under the old Act.

Establishment and Jurisdiction:

A **District Commission** is established by the State Government in every district of the State. It has the jurisdiction to entertain complaints where the value of the goods or services paid as consideration **does not exceed ₹1 Crore** (Section 34(1)). The complaint can be filed where the complainant resides or personally works for gain, where the opposite party resides or has its branch office, or where the cause of action arises (Section 34(2)).

Composition (Section 28):

A District Commission shall consist of:

1. A **President:** A person who is a retired or working Judge of a District Court or is qualified to be a Judge of a District Court. The President is appointed by the State Government in consultation with the High Court.
2. **At least two other members:** Such number of members as may be prescribed, who shall be persons of ability, integrity, and standing, and having adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration. One of the members shall be a **woman**.

The members are appointed by the State Government on the recommendation of a Selection Committee. The tenure of the President and members is as prescribed by rules (typically 5 years or up to a certain age). They cannot hold office for more than two consecutive terms.

Functions:

• To entertain complaints within its pecuniary and territorial jurisdiction.
• To inquire into the complaints and pass appropriate orders (e.g., directing replacement of goods, refund of price, removing defects/deficiencies, awarding compensation).
• To direct the opposite party to discontinue unfair/restrictive trade practices.
• To decide on product liability actions within its pecuniary limit.
• To deal with mediation proceedings (through attached mediation cells).

The District Commission is the first point of contact for consumers seeking redressal for disputes involving smaller claims.

State Consumer Disputes Redressal Commission (State Commission) (Section 42)

The State Consumer Disputes Redressal Commission forms the second tier of the consumer dispute redressal machinery under the Consumer Protection Act, 2019. It operates at the State level.

Establishment and Jurisdiction:

A **State Commission** is established by the State Government in the State. It has the jurisdiction to entertain complaints where the value of the goods or services paid as consideration **exceeds ₹1 Crore but does not exceed ₹10 Crore** (Section 47(1)(a)(i)). It also has appellate jurisdiction to entertain appeals against the orders of any District Commission within the State (Section 47(1)(a)(ii)). Furthermore, it has revisionary jurisdiction over District Commissions (Section 47(1)(b)). The territorial jurisdiction is generally the entire State.

Composition (Section 42):

A State Commission shall consist of:

1. A **President:** A person who is a retired or working Judge of a High Court or is qualified to be a Judge of a High Court. The President is appointed by the State Government in consultation with the Chief Justice of the High Court.
2. **At least four other members:** Such number of members as may be prescribed, who shall be persons of ability, integrity, and standing, and having adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration. One of the members shall be a **woman**.

The members are appointed by the State Government on the recommendation of a Selection Committee. The tenure of the President and members is as prescribed by rules (typically 5 years or up to a certain age), and they cannot hold office for more than two consecutive terms.

Functions:

• To entertain original complaints within its pecuniary and territorial jurisdiction.
• To entertain appeals against the orders of District Commissions.
• To entertain revision petitions against the orders of District Commissions.
• To inquire into complaints and pass appropriate orders.
• To call for records and pass appropriate orders in any consumer dispute which is pending or has been decided by any District Commission within the State, if it appears that the District Commission has exercised jurisdiction not vested in it by law, or has failed to exercise jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

The State Commission handles complaints of higher value and acts as the first appellate authority for decisions made by the District Commissions.

National Consumer Disputes Redressal Commission (National Commission) (Section 53)

The National Consumer Disputes Redressal Commission is the apex tier of the consumer dispute redressal machinery in India, established at the Central level.

Establishment and Jurisdiction:

The **National Commission** is established by the Central Government. It has the jurisdiction to entertain complaints where the value of the goods or services paid as consideration **exceeds ₹10 Crore** (Section 58(1)(a)(i)). It also has appellate jurisdiction to entertain appeals against the orders of any State Commission (Section 58(1)(a)(iii)). Furthermore, it has revisionary jurisdiction over State Commissions (Section 58(1)(b)). Its territorial jurisdiction extends throughout India.

Composition (Section 53):

The National Commission shall consist of:

1. A **President:** A person who is a retired or working Judge of the Supreme Court or is qualified to be a Judge of the Supreme Court. The President is appointed by the Central Government in consultation with the Chief Justice of India.
2. **At least four other members:** Such number of members as may be prescribed, who shall be persons of ability, integrity, and standing, and having adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration. One of the members shall be a **woman**.

The members are appointed by the Central Government on the recommendation of a Selection Committee chaired by a Judge of the Supreme Court nominated by the Chief Justice of India. The tenure of the President and members is as prescribed by rules (typically 5 years or up to a certain age), and they cannot hold office for more than two consecutive terms.

Functions:

• To entertain original complaints within its pecuniary and territorial jurisdiction.
• To entertain appeals against the orders of State Commissions.
• To entertain revision petitions against the orders of State Commissions.
• To inquire into complaints and pass appropriate orders.
• To call for records and pass appropriate orders in any consumer dispute which is pending or has been decided by any State Commission, if it appears that the State Commission has exercised jurisdiction not vested in it by law, or has failed to exercise jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.
• To have administrative control over the State Commissions and ensure proper functioning of the State and District Commissions.

The National Commission is the highest authority in the three-tier system, handling the most significant claims and acting as the final appellate body within this structure (subject to appeal to the Supreme Court against its orders in certain cases).

Appointment of President and Members

The credibility and effectiveness of the consumer dispute redressal agencies heavily depend on the quality and independence of their members. The Consumer Protection Act, 2019, lays down specific qualifications and a structured process for the appointment of the President and members of the District, State, and National Commissions.

Selection criteria and process

The appointment of members to these Commissions is done through a rigorous selection process involving a dedicated Selection Committee, ensuring that persons with appropriate legal background, experience, and integrity are appointed.

Selection Committee:

The Act provides for the constitution of Selection Committees for appointments at each level:

• **For District Commission:** A State Government constituted Selection Committee, typically chaired by the President of the State Commission.
• **For State Commission:** A State Government constituted Selection Committee, typically chaired by a Judge of the High Court.
• **For National Commission (Section 53(2)):** A Central Government constituted Selection Committee consisting of:
  • A Judge of the Supreme Court (nominated by the Chief Justice of India) - **Chairman**.
  • The Secretary in the Department of Consumer Affairs, Government of India - Member.
  • The Chairperson of the Central Authority (CCPA) - Member.

The Selection Committee scrutinises applications, evaluates candidates based on their qualifications and experience, and recommends suitable persons for appointment.

Qualifications for Appointment:

The Act prescribes specific qualifications for the President and members at each level to ensure they possess the necessary expertise and judicial temperament.

District Commission (Section 28(1)):

• **President:** A person who is a retired or working Judge of a District Court OR is qualified to be a Judge of a District Court.
• **Members (at least two, including one woman):** Persons of ability, integrity, and standing, and having adequate knowledge and experience of at least **ten years** in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration.

State Commission (Section 42(1)):

• **President:** A person who is a retired or working Judge of a High Court OR is qualified to be a Judge of a High Court.
• **Members (at least four, including one woman):** Persons of ability, integrity, and standing, and having adequate knowledge and experience of at least **ten years** in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration.

National Commission (Section 53(1)):

• **President:** A person who is a retired or working Judge of the Supreme Court OR is qualified to be a Judge of the Supreme Court.
• **Members (at least four, including one woman):** Persons of ability, integrity, and standing, and having adequate knowledge and experience of at least **ten years** in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs, or administration.

Appointing Authority:

• President and Members of the **District Commission** are appointed by the **State Government** on the recommendation of the State-level Selection Committee. The President's appointment requires consultation with the High Court.
• President and Members of the **State Commission** are appointed by the **State Government** on the recommendation of the State-level Selection Committee. The President's appointment requires consultation with the Chief Justice of the High Court.
• President and Members of the **National Commission** are appointed by the **Central Government** on the recommendation of the Central-level Selection Committee. The President's appointment requires consultation with the Chief Justice of India.

This structured process aims to ensure the impartiality and competence of the members staffing the consumer dispute redressal agencies.

Disqualification of Members

To maintain the integrity and impartiality of the consumer forums, the Consumer Protection Act, 2019, specifies certain grounds on which a person shall be disqualified from being appointed as a President or member of a Commission or shall be removed from office.

Grounds for Disqualification (Section 31, 45, 56):

A person shall not be qualified for appointment as a President or member of a District Commission, State Commission, or National Commission if he or she:

• **Has been convicted of an offence** which, in the opinion of the Central Government (for National Commission) or State Government (for State/District Commission), involves moral turpitude.
• **Has been adjudged an insolvent.**
• **Has any financial or other interest** as may be prescribed, which is likely to affect prejudicially his functions as a member.
• **Has such physical or mental incapacity** as renders him incapable of acting as a member.
• **Has acquired such financial or other interest** as is likely to affect prejudicially his functions as a member.
• **Has so abused his position** as to render his continuance in office prejudicial to the public interest.

Removal from Office:

The Central Government (for National Commission) or State Government (for State/District Commission) has the power to remove the President or any member from office on grounds of proved misbehaviour or incapacity, or on any of the grounds mentioned for disqualification, provided that such removal is based on an inquiry conducted as per the prescribed procedure and rules.

Specifically, for the President of the National Commission (a Supreme Court Judge), the procedure for removal would align with the constitutional procedure for removal of a Supreme Court Judge.

These disqualifications and removal provisions are intended to ensure that only persons of high integrity and competence serve in the consumer forums, free from conflicts of interest or other factors that could compromise their ability to deliver justice.

Terms and Conditions of Service

The terms and conditions of service for the President and members of the consumer forums, including their tenure, age limit, salary, and allowances, are governed by the provisions of the Consumer Protection Act, 2019, and the rules framed thereunder by the Central Government (for National Commission) and State Governments (for State and District Commissions).

Tenure and Age Limits (Section 30, 44, 55):

The Act specifies the maximum tenure and retirement age for the President and members at each level:

District Commission:

• **President and Members:** Hold office for a term of **five years** or until they attain the age of **sixty-five years**, whichever is earlier. They shall be eligible for re-appointment for not more than one additional term of five years.

State Commission:

• **President and Members:** Hold office for a term of **five years** or until they attain the age of **sixty-seven years**, whichever is earlier. They shall be eligible for re-appointment for not more than one additional term of five years.

National Commission:

• **President and Members:** Hold office for a term of **five years** or until they attain the age of **seventy years**, whichever is earlier. They shall be eligible for re-appointment for not more than one additional term of five years.

The restriction of **not more than two consecutive terms** (totaling a maximum of 10 years, subject to age limits) applies to both President and members across all three tiers.

Salary, Allowances, and Other Conditions:

The salary, allowances, and other terms and conditions of service of the President and members of the Commissions are as may be **prescribed by the Central Government** (for the National Commission) or the **State Government** (for the State and District Commissions) in the respective rules. These conditions are generally intended to be at par with equivalent positions in other tribunals or judicial bodies to attract qualified individuals and ensure their financial security and independence.

The salaries, allowances, and other conditions of service of the President and members **shall not be varied to their disadvantage** after their appointment.

Restrictions on Future Employment:

Upon ceasing to hold office, the President or a member is restricted from taking up certain types of employment. Generally, they are barred from appearing as a lawyer or representing any party before the Commission in which they served, or sometimes before any consumer forum, for a specified period after demitting office. The specific restrictions are detailed in the relevant rules framed under the Act.

These provisions regarding appointment, qualifications, disqualifications, and terms of service are vital for establishing the independence, expertise, and effective functioning of the consumer dispute redressal agencies, thereby strengthening the overall consumer protection framework in India.