NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

DR. P.D.SHENOY REPORT

Recommendations of the Committee Constituted under the Chairmanship of Dr. P D Shenoy, Member,NCDRC, to consider the following is sues:

(i) To examine the administrative and financial powers of the Presidents of the State Commission and make

recommendations to ensure the effective functioning of the State and District Fora.

(ii) To study the imposition of cost and levying of fees by the State and District Fora and to suggest guidelines for their

proper and effective utilization.

(iii) To examine the necessity of conducting induction training to the new Members of the State and District Fora and

make suitable recommendations.

(iv) To suggest suitable guidelines for grant of pay and perquisites to the Members of the State and District Fora.

The following Members were present:
1.   Hon’ble Mr Justice N K Jain, President, Madhya Pradesh State Consumer Disputes Redressal Commission
2.   Hon’ble Justice Mr B B Vagyani, President, Maharashtra State Consumer Disputes Redressal Commission
3.   Hon’ble Justice Mr R C Kathuria, President, Haryana State Consumer Disputes Redressal Commission.

The recommendations of the Committee are as follows:
1. To examine the administrative and financial powers of the Presidents of the State Commission and make recommendations to ensure the effective functioning of the State and District Fora.

In order to translate the mandate, of the Hon’ble Supreme Court in the case of State of Uttar Pradesh vs Jeet Singh Bisht and Others, (Special Leave Petition No. 6928 of 1999) as per order dated 10th July, 2002 as well as the State of Rajasthan and Others vs Anand Parkash Solanki, (Civil Appeal No. 6733 of 2003) as per order dated 25th August, 2003. (Annexure ‘A’ & B) into a reality and to have effective control over the functioning of the State Commissions and the District Fora in terms of the Provisions of Section 24 B of the Consumer Protection Act, 1986;
It is recommended that various State Governments may incorporate the following Rules in their existing Consumer Protection Rules;-
(a)   The President of the State Commission shall be Head of the Department and Controlling Authority for the purposes        of Book/ Code of Financial Powers.
(b)   Appointment of Officers and staff (except the President and Members) of the District Fora and State Commission        shall be made by the President of the State Commission;
       Provided that the cadre, number, salaries and allowances of such officers and staff shall be fixed by the State
       Government by Rules to be made in consultation with the President of the State Commission.
(c)   Salaries of such officers and staff shall be defrayed out of the consolidated fund of the State.

2. To study the imposition of cost and levying of fees by the State and District Fora and to suggest guidelines for their proper and effective utilization.

It is suggested that Regulation 11 (5) which provides for imposition of minimum cost need to be amended and it should be left to the discretion of the Commission or the District Forum concerned to decide about the quantum of cost depending on the facts and circumstances of each case.
As regards utilization of costs, the National Commission may frame appropriate Regulations provided for the purpose and manner of utilizing this amount. For this purpose, guidelines contained in the Legal Services Act, may be followed.
Fees for filing complaints of the valuation upto Rs.10,000/- should be NIL and accordingly Rule 9 A of the Consumer Protection Rules 1987 (Central Rules) may be amended.
With regard to payment of fees on complaints, existing Table of Rule 9 A of Consumer Protection Rules, 1987 may be substituted by the following Table:

S No.	Total value of goods or service and the compensation claimed	Amount of fee payable
DISTRICT FORUM
1.	Upto to one lakh rupees – For complainants who are under the Below Proverty Line holding Antyodaya Anna Yojana cards	NIL
1 A.	Upto Rs.10,000/-	NIL
2.	Upto one lakh Rupees – For complainants other than Antyodaya Anna Yojana card holders	Rs.100/-
3.	Above one lakh and upto five lakh rupees	Rs.500/-
4.	Above five lakh and upto ten lakh rupees	Rs.1000/-
5.	Above ten lakh and upto twenty lakh rupees	Rs.2000/-
STATE COMMISSION
6.	Above twenty lakh and upto fifty lakh rupees	Rs.5000/-
7.	Above fifty lakh and upto one crore rupees	Rs.10,000/-
NATIONAL COMMISSION
8.	Above one crore rupees	Rs.25,000/-
9.	Above five crore rupees	Rs.50,000.-
10.	Above ten crore rupees	Rs.1,00,000/-

3. To examine the necessity of conducting induction training to the new Members of the State and District Fora and make suitable recommendations.

At present help is being taken of the Indian Institute of Public Administration (IIPA) for imparting training to the Members of the State Commission as well as Presidents and Members of the District Fora which is being monitored at the level of the National Commission. The programme and orientation training needs to be de-centralized at the Headquarter level of the respective State Commissions by introducing 15 days training programme to the newly inducted Members of the State and District Fora including the Presidents of the District Fora so as to equip them with regard to the procedure to be followed while conducting the complaint cases so as to help them to avoid illegalities being committed for the smooth functioning of the District Fora. The training programme shall take care of following aspects:
1.    Consumer Protection Act, 1986 and amendments in the Consumer Protection Act, their judicial implications on
       different points.
2.    A correct approach of the Judgment writing.
3.    General principles of Consumer Protection Act to be followed by the Consumer Fora with reference to the settled
       law by the Hon’ble National Commission on the procedure of dealing the complaints by District Consumer Fora.
4.    Settled law in deciding cases related to HUDA etc., Electricity, Insurance Assurance, Banking and
       Telecommunications.
5.    Procedure of Institution, processing granting of adjournments recording of zimini orders, granting of interim
       injunctions, maintenance of Institution and disposal register, maintenance of statistical information as per Consumer
       Protection Act and instructions issued by the Hon’ble National Commission from time to time.
6.    A peep into Civil Service Rules so far as working of the District Consumer Fora is concerned demystified.
7.    Canons of filing of properties, purchase procedure, store procedure, writing of loss etc., demystified.
8.    Initiating of disciplinary action against the staff under various Rules/ Government instructions issued by the State
      Government and writing of A C R s.
9.    Any other topic suitable for trainees to be selected by the President of the State Commission.
      The State Government shall provide suitable Budget for this purpose and keep the amount at the disposal of the       President of the State Commission.

4. To suggest suitable guidelines for grant of pay and perquisites to the Members of the State and District Fora.

Salary and other allowances of the President of the State Commission and District Forum (Minus pension drawn, if any)
The service conditions of the President of the State Commission shall be the same as that of a sitting Judge of the High Court.
Member of the State Commission appointed on a whole-time basis shall be entitled to pay and allowance as are available to a sitting District Judge.

Provided that if a Member of the State Commission appointed on a part-time basis he/ she shall be paid Honorarium of not less than Rs.1000/- and conveyance allowance of not less than Rs.300/- per day’s sitting.
The President of the District Forum shall be entitled to pay and allowances payable to a sitting District Judge (Minus pension drawn, if any)
Members of the District Forum appointed on whole time basis shall be entitled to not less than Rs.15,000/- per month by way of Honorarium plus not less than Rs.3000/- as conveyance allowance per month.
Provided a Member of the District Forum appointed on a part-time basis, he/ she shall be entitled to Honorarium of not less than Rs.600/- and conveyance allowance of not less than Rs.150/- per day’s sitting.

Sd/-
[ P D Shenoy ]
Member, NCDRC 07.05.2008