AMITY BUSINESS SCHOOL

BUSINESS LAW ASSIGNMENTTOPIC: STATE COMMISSION

Submitted To:Mr. Anand Kumar Shrivastava

Submitted By:Adarsh Jain

Mitika GhorpadeB.Com. (H) Sem II Sec A

Contents1. Composition of the State Commission

(Section 16)2. Jurisdiction of State Commission3. Transfer of cases (Section 17 A)4. Circuit Benches (Section 17 B)5. Expeditious hearing of appeal

(Section 19 A)6. Conclusion

1. Composition of the State Commission (Section 16)1.1 The President1.2 Members

1.2.1 Qualifications of members1.2.2 Disqualifications of Members Section 16(1)1.2.3 Selection committee for appointment of

members (Sec.16 (1A))

1.1 The PresidentThe President shall be a person

who is or has been a Judge of a High Court, appointed by the State Government. His appointment should be made in consultation with the Chief Justice of High Court.

1.2 MembersIn the state commission there

should be not less than two, and not more than such number of members, as may be prescribed, and one of whom shall be a woman.

1.2.1 Qualifications of membersi. Be not less than thirty-five years of

ageii. Possess a bachelor's degree from a

recognized university;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:

1.2.2 Disqualifications of Members Section 16(1)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; orc) is of unsound mind and stands so declared by

a competent court; ord) has been removed or dismissed from the

service of the Government or a body corporate owned or controlled by the Government; or

e) has such other disqualifications as may be prescribed by the State Government.

1.2.3 Selection committee for appointment of members (Sec.16 (1A))Selection Committee consisting of the

following members, namely:i. President of the State

Commission...Chairman;ii. Secretary of the Law Department of the

State ....Member;iii. Secretary incharge of the Department

dealing with Consumer Affairs in the State..... Member:

II. Jurisdiction of State Commission

2.1 Pecuniary Jurisdiction 2.2 Territorial Jurisdiction2.3 Appellate Jurisdiction (Section 15)

2.1 Pecuniary Jurisdiction Complaints where the value of the goods or

services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore, then it comes under the pecuniary jurisdiction of State Commission.

It may be noted that prior to amendment the pecuniary jurisdiction of state commission was upto 20 lakhs. By the Consumer Protection (Amendment) Act, 2002, the jurisdiction of the State Commission has been increased to Rs. 1 Crore. The change is likely to be beneficial to the consumer. It will reduce the number of complaints to the National Commission.

2.2 Territorial Jurisdictiona) 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

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.

2.3 Appellate Jurisdiction (Section 15)Section 15 of the Act gives the right to prefer

an appeal to the state commission within a period of thirty days from the date of order of the District Forum to any person who has been aggrieved by the order. The time limit may be extended by the state commission on showing sufficient cause.

The person making an appeal should deposit 50% of the decreed amount or Rs.25000/whichever is less. This requirement has been introduced by the Consumer Protection (Amendment) Act, 2002.

3. Transfer of cases (Section 17 A)This section is also inserted by the

Consumer Protection (Amendment) Act, 2002. This section enables the State Commission to transfer a Case from one District Forum to another within the state. On the application of a complaint or of its own motion, the State Commission may, at any stage of the proceeding, transfer any complaint pending before the District Forum to another District Forum within the State if the interest of justice so requires.

4. Circuit Benches (Section 17 B)This is a new provision inserted in the Act

by the Consumer Protection (Amendment) Act, 2002. Section 17 B, provides for establishment of Circuit Benches of State Commission. The State Commission shall ordinarily function in the State Capital but may perform its functions at such other place as the State Government may, in consultation with the State Commission, notify in the Official Gazette, from time to time.

5. Expeditious hearing of appeal (Section 19 A)A new section, 19A, has been inserted by

the consumer protection (Amendment) Act, 2002. It provides that endeavor shall be made to dispose of appeals filed before the State Commission or the National Commission within ninety days from the date of admission. It provided for expeditious hearing of appeal, quicker decision and restriction of adjournment.

Conclusion The scope of the Consumer Protection Act is

widening in the society which is pro to globalization, industrialization and Privatization. So the Legislature has taken all the possible steps by making timely amendments to the Act in accordance with the needs of time.

In fact all the amendments made to the Consumer Protection Act by the 2002 Amendments aim at furthering the efficiency of the Act and doing away with procedural delays which render the consumers disillusioned and dissatisfied.

THANKYOU..!!