Section 58 CPA: Jurisdiction of National Commission

Section 58 of Consumer Protection Act: Jurisdiction of National Commission

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(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;

(iii) appeals against the orders of any State Commission;

(iv) appeals against the orders of the Central Authority; and

(b) to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any State Commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the exercise of its jurisdiction illegally or with material irregularity.

(2) The jurisdiction, powers and authority of the National Commission may be exercised by Benches thereof and a Bench may be constituted by the President with one or more members as he may deem fit:

Provided that the senior-most member of the Bench shall preside over the Bench.

(3) Where the members of a Bench differ in opinion on any point, the points shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the President who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members and such point or points shall be decided according to the opinion of the majority of the members who have heard the case, including those who first heard it:

Provided that the President or the other member, as the case may be, shall give opinion on the point or points so referred within a period of two months from the date of such reference.

Legal Commentary & Landmark Judgments: Section 58

Section 58 of the Consumer Protection Act defines the original, appellate, and supervisory jurisdiction of the National Consumer Disputes Redressal Commission (NCDRC) as the apex consumer adjudicatory tribunal.

Core Legal Standard: Section 58 governs the apex jurisdiction of the National Consumer Disputes Redressal Commission, entertaining complaints exceeding statutory pecuniary limits and exercising supervisory revisionary powers.
Appellate Remedies & Forum: Under sub-section (1)(a), the NCDRC has original jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds the statutory ceiling (currently exceeding ₹2 crores), complaints against unfair contracts where consideration exceeds that threshold, and appeals against orders of any State Commission.
Sub-Section (1): State: Under sub-section (1)(b), the NCDRC exercises revisional powers over State Commissions where there appears to have been an illegal exercise of jurisdiction or material irregularity.

This statutory framework establishes clear operational guidelines, balancing legal compliance with procedural safeguards.

Key Landmark Precedents:

Bar Council of India v. A.K. Balaji (2018) 5 SCC 379: The Supreme Court recognized the NCDRC as a premier national judicial tribunal exercising plenary adjudicatory powers over high-value consumer disputes.
Pioneer Urban Land & Infrastructure Ltd. v. Union of India (2019) 8 SCC 416: The Supreme Court affirmed the expansive jurisdiction of the NCDRC in entertaining representative and group consumer claims against corporate developers and multinational service providers.

Legal Commentary:

The NCDRC serves as the primary forum for large-scale consumer litigations involving multi-crore real estate projects, complex medical negligence claims against super-speciality hospitals, and corporate insurance repudiations. Appeals against original NCDRC orders lie exclusively before the Supreme Court under Section 67.

Section 58: Jurisdiction of National Commission

Section 58 of Consumer Protection Act: Jurisdiction of National Commission

Legal Commentary & Landmark Judgments: Section 58