National Consumer Disputes Redressal Commission (NCDRC)

It is a Quasi–Judicial Commission set up in 1988 under the Consumer Protection Act 1986. It is Statutory Body established by an Act of Parliament. Its Head Office is at New Delhi and is known as Upbhokta Nyay Bhawan.

Jurisdiction of NCDRC

Complaints valued more than Rs. 10 crore and also appellate and revisional Jurisdiction from the orders of State Consumer Disputes Redressal Commissions. The orders of NCDRC can be appealed in Supreme Court within 30 days. At present we have –

1) 629 District Level Consumer Forums (limitation upto Rs. 1 crore). District Level Forum is headed by a person who is or has been or is eligible to be appointed as District Judge.

2) At State Level we have 35 State Consumer Disputes Redressal Commissions, (limitation upto Rs. 10 crore) headed by a person who is or has been a Judge of a High Court.

3) At National Level we have one National Consumer Disputes Redressal Commission headed by a sitting or retired Judge of Supreme Court.

Limitation Period

Within 2 years from the date on which the cause of action has arison.

Time framework

3 months where no testing of commodities and within 5 months if it require analysis or testing of commodities.

NCDRC is headed by Chairperson and has 10 members. Tenure of Chairperson and members are 5 years or upto the age of 70 years whichever is earlier.

The Consumer Protection Act, 1986 is a Social Legislation that lays down the right of the Consumers and provides for their promotion and protection of the Rights of Consumers. It enables ordinary consumer to secure less expensive and speedy redressal of their grievances.

The remedy under the Consumer Protection Act is an alternative in addition to that already available to the aggrieved persons/consumers by way of civil suit. In the complaint to NCDRC a consumer is not required to pay any court fee but only a nominal fee.

Parliament Passed Consumer Protection Bill 2019 on 06.08.2019 and got the assent of President on 09.08.2019 to replace Consumer Protection Act 1986 for providing timely and effective administration and settlement of Consumer Disputes and related matters and implemented on 20th July, 2020.

The Government instead of bringing an Amendment in 1986 Act enacted a new Act altogether so as to provide enhanced protection to the consumers considering booming e-commerce industry and the modern methods of providing goods & services such as online sales, teleshopping, direct selling and multi level marketing in addition to the traditional methods.

Key Features of Consumer Protection Act 2019 (CPA 2019)

CCPA (Central Consumer Protection Authority) has been established on 24.07.2020 to regulate, protect and enforce the interest of the consumers and matters related to unfair trade practices. CCPA may impose penalty up to Rs. 10 lakh for first violation and up to Rs. 50 lakh on every subsequent violation on a manufacturer for a false or misleading advertisement.

Pecuniary (i.e. monetary/financial) Jurisdiction has been enhanced as follows–

1) For District Level Consumer Forum from upto Rs. 20 Lakh to Rs. 1 crore.

2) For State Level Commissions from upto Rs. 1 crore to upto Rs. 10 crore.

3) For NCDRC from more than Rs. 1 crore to More than Rs. 10 crore. Now complaints can be filed electronically before the District forums.

Now complaints can be filed electronically before the District forums.