Introduction

The State Consumer Disputes Redressal Commission (State Commission) is the second level in the three-tier consumer dispute resolution system under the Consumer Protection Act, 2019.

It hears major consumer complaints and also acts as an appellate authority (authority that hears appeals) against decisions of the District Commissions within the state.

Meaning / Definition

The State Commission is a quasi-judicial body (a body that performs functions similar to a court) established under Section 42 of the Consumer Protection Act, 2019 to resolve consumer disputes at the state level.

It deals with higher value consumer claims and also reviews decisions made by District Commissions.

Modes or Types

Establishment of the State Commission

According to Section 42(1), every State Government must establish a State Consumer Disputes Redressal Commission for the state.

Constitution of the State Commission

According to Section 42(3), each State Commission consists of:

• a President, and
• not less than four members, and the maximum number of members is prescribed by rules in consultation with the Central Government.

Appointment and Qualifications

Under Section 43 and the Consumer Protection Rules, 2020, the Central Government prescribes the qualifications and appointment procedure.

Qualification of President

The President must be:

• a sitting judge of a High Court, or
• a former judge of a High Court.

Qualification of Members

A member must:

• be at least 40 years of age, and
• possess ability, integrity, and good reputation.

Members may fall into two categories:

Judicial Members

• persons with at least 10 years of experience as a presiding officer of a District Court or a similar tribunal.

Non-Judicial Members

• graduates with at least 15 years of professional experience in areas such as
  • consumer affairs
  • law
  • administration
  • economics
  • commerce
  • industry
  • finance
  • management
  • engineering
  • technology
  • public health or medicine.

Not more than 50% of the members may be judicial members, meaning that more than half of the members may be non-judicial members.

If the President is not a woman, at least one member must be a woman.

Disqualification for Appointment

A person cannot be appointed as President or Member if he:

• has been convicted of an offence involving moral turpitude (serious immoral conduct)
• has been declared insolvent (unable to pay debts)
• is of unsound mind as declared by a court
• has been removed from government service
• has financial interests that may affect impartial performance of duties.

Method and Procedure of Appointment

The method and procedure of appointment are similar to those followed for the District Commission.

Appointments are made by the State Government based on the recommendation of a Selection Committee.

Vacancies are publicly advertised and eligible candidates apply. The Selection Committee evaluates the applications and recommends suitable candidates to the State Government.

Term of Office

The term of office of the President and Members of the State Commission is the same as that of the District Commission:

• four years, or
• until the age of 65 years, whichever occurs earlier.

They may be reappointed for one more term, subject to the age limit.

Salary and Allowances

The salaries and service conditions are governed by the Consumer Protection (Salary, Allowances and Conditions of Service) Model Rules, 2020.

• The President receives salary and allowances similar to a High Court Judge.
• A Member receives pay equivalent to the minimum pay of an Additional Secretary of the State Government.

Jurisdiction of the State Commission

Original Jurisdiction

Under Section 47, the State Commission can hear complaints where:

• the value of goods or services exceeds ₹1 crore but does not exceed ₹10 crore.

It can also hear complaints relating to unfair contracts where the value does not exceed ₹10 crore.

Territorial Jurisdiction

The rules for territorial jurisdiction are similar to those of the District Commission. A complaint may be filed where:

• the opposite party resides or carries on business,
• the cause of action arises, or
• the complainant resides or works for gain.

Appellate Jurisdiction

Under Section 47(1)(a)(iii), the State Commission hears appeals against orders of District Commissions within the state.

Revisional Jurisdiction

Under Section 47(1)(b), the State Commission may call for records of any case decided by a District Commission if it appears that the District Commission:

• exercised jurisdiction not given by law,
• failed to exercise jurisdiction given by law, or
• acted illegally or with serious procedural error.

Review Jurisdiction

Under Section 50, the State Commission may review its own orders if there is an error apparent on the face of the record (clear mistake in the decision).

The review may be done within 30 days of the order.

Benches of the State Commission

The President may form Benches (smaller panels of members) to hear cases.

If members of a Bench disagree on a decision, the matter is decided by majority opinion. If the members are equally divided, the issue is referred to the President for decision.

Distinction / Comparison

Practical Example

Suppose a consumer buys industrial machinery worth ₹3 crore which turns out to be defective. Since the value of the goods exceeds ₹1 crore, the complaint cannot be filed before the District Commission.

The consumer must file the complaint before the State Commission, which has jurisdiction over such high-value disputes.

Summary

• The State Commission is the second level in the consumer dispute resolution system.
• It is established by the State Government under Section 42 of the Consumer Protection Act, 2019.
• The Commission consists of a President and at least four members.
• The President must be a sitting or former High Court judge.
• Members may be judicial or non-judicial experts in fields such as law, economics, commerce, or public affairs.
• The State Commission hears complaints where the value of goods or services exceeds ₹1 crore but does not exceed ₹10 crore.
• It also hears appeals from District Commissions and has revisional and review powers.