Commissions In India – State Commission And National Commission

The doctrine of Separation of powers has been deeply enshrined in our Constitution. However, more than five decades ago, when the Constitution was framed, the activities of the state were relatively few and limited. Since then, the state’s activities have increased considerably and the central and state governments have also entered into commercial and other fields. The framers of the Constitution could not have anticipated all these, which is why they limited themselves only to certain judicial fora to give relief to the citizens of the country. Perhaps, at that time, they felt that the existing courts of law were sufficient to meet the judicial aspirations of the people and deal with all types of disputes. It was, however, subsequently realised that ordinary courts of law, with their traditional and procedural limitations, were not adequate to meet the changed situation and solve the various problems that arose in the new socio-economic context. As a result of this, various tribunals are/were established which are not strictly courts in the traditional sense. But they entertain and decide a large number of disputes, following the proper legal procedure.

Restrictive Trade Practices Commission

The Monopolies and Restrictive Trade Practices Commission has been setup under The Monopolies and Restrictive Trade Practices Act, 1969 (amended in 1984) to prevent monopolistic trade practices and restrictive and unfair trade practices. The commission has the jurisdiction to enquire into any restrictive, unfair or monopolistic trade practice (false representation of the standard of the goods, false claims regarding affiliations etc., misleading representations regarding the usefulness of certain goods, the hoarding of goods with an expectation of raising the costs etc.)

Commission For Protection Of Consumers

To overcome the shortcomings of the MRTP Commission and to provide for the better protection of the interest of the consumers, a law known as the Consumer Protection Act was enacted in 1986. The Consumer Protection Act, 1986, is one of the most progressive and comprehensive pieces of legislation enacted for the better protection of consumers providing redressal forums in the Act itself which is unique. It was enacted after the in-depth study of consumer protection laws in a number of countries and in consultation with representatives of consumers, trade and industry and extensive discussions within the Government. All the provisions of the Act came into force with effect from 1, July 1987. The main objective of the Act is to provide for the better protection of consumers. The Act has been amended in 1993 both to extend its coverage and scope and to enhance the powers of the redressal machinery.

The salient features of the Act are

i) The Act applies to all goods and services unless specifically exempted by the Central Government.

ii) It covers all the sectors whether private, public or cooperative. The provisions of the Act are compensatory in nature.

iii) It enshrines the following rights of consumers:

Right to be protected against the marketing of goods and services which are hazardous to life and property.
Right to be informed about the quality, quantity, potency, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices.
Right to be assured, wherever possible, access to a variety of goods and services at competitive prices.
Right to be heard and to be assured that consumers’ interests will receive due consideration at appropriate forums.
Right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers, and Right to consumer education. Under this act, a three-tier system for settling consumer complaints is provided.

District Level Fora:

These Fora are established in each district of a state by the state government with the approval of the central government. The District Commission’s jurisdiction is confined to entertaining all consumer complaints where the value of the goods or services and compensation claimed is less than Rs. 5 lakhs.

State Commission:

State Commissions are established by the state government with the prior approval of the central government in each state. The State Commission entertains complaints where the value of the goods or service and compensation, if any, claimed exceeds Rs. 5,00,000 (five lakhs) but does not exceed Rs 20,00,000 (twenty lakhs); it also hears appeals against the orders of any district forum within the state. It also has the power of revision.

Additionally, it can call for the records and pass appropriate order in any consumer dispute which is pending before it or has been decided by any District Forum within the state and where it appears to the state commission that the District Forum has exercised jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity.

National Commission:

The National Consumer Disputes Redressal Commission has been established by the central government for the whole of India, and it is located in New Delhi. The National Commission also has original jurisdiction to entertain complaints where the value of the goods or services and compensation claimed exceeds Rs. 20,00,000 (twenty lakhs). It has the power to hear appeals by any persons aggrieved by the order of the State Commission and it also has revisional powers. Appeal from the National Commission is provided directly to the Supreme Court. In recent years the Commission has delivered decisions on very important and varied matters which have proved a boon to ordinary persons such as consumers of products, railway and air travellers, telephone subscribers, electricity users, insured persons, purchasers of various goods, users of vehicles and those who hire consumer services, etc.

Check out these notes on the election commission and various appellate boards.