Full Judgment Text
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.(s). 2740 OF 2007
STATE OF UTTAR PRADESH THROUGH APPELLANT(s)
PRINCIPAL SECRETARY & ORS.
VERSUS
ALL U.P. CONSUMER PROTECTION BAR
ASSOCIATION RESPONDENT(S)
WITH
WRIT PETITION (CIVIL) NO. 164 OF 2002
J U D G M E N T
INDU MALHOTRA, J:
(1) The issue which arises for consideration in the
Signature Not Verified
present civil appeal and writ petition pertains to the
Digitally signed by
MADHU BALA
Date: 2018.05.18
16:42:01 IST
Reason:
paucity of infrastructure in the Consumer Fora all over
the country.
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(2) This Court vide order dated 14 January, 2016
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constituted a three-member committee presided over by
Justice Arijit Pasayat [Retired] to examine various
aspects as enumerated in the Order. The said committee
was requested to forward its deliberations to the
various State Governments.
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(3) By Order dated 21 November, 2016 this Court issued
directions to the Union Government to frame Model Rules
for the purpose of ensuring uniformity by the State
Governments in the exercise of the rule-making power
under Sections 10(3) and 16(2) of the Consumer
Protection Act, 1986. The directions issued by this
Court are reproduced hereunder:
“(i) The Union Government shall for
the purpose of ensuring Uniformity in
the exercise of the rule making power
under Section 10(3) and Section 16(2)
of the Consumer Protection Act, 1986
frame model rules for adoption by the
State Governments. The model rules
shall be framed within four months and
shall be submitted to this Court for
its approval;
(ii) The Union Government shall also
frame within four months model rules
prescribing objective norms for
implementing the provisions of Section
10(1)(b), Section 16(1)(b) and Section
20(1)(b) in regard to the appointment
of members respectively of the
District fora, State Commissions and
National Commission;
(iii) The Union government shall while
framing the model rules have due
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regard to the formulation of objective
norms for the assessment of the
ability, knowledge and experience
required to be possessed by the
members of the respective fora in the
domain areas referred to in the
statutory provisions mentioned above.
The model rules shall provide for the
payment of salary, allowances and for
the conditions of service of the
members of the consumer fora
commensurate with the nature of
adjudicatory duties and the need to
attract suitable talent to the
adjudicating bodies. These rules
shall be finalized upon due
consultation with the President of the
National Consumer Disputes Redressal
Commission, within the period
stipulated above;
(iv) Upon the approval of the model
rules by this Court, the State
governments shall proceed to adopt the
model rules by framing appropriate
rules in the exercise of the rule
making powers under Section 30 of the
Consumer Protection Act, 1986.
(v) The National Consumer Disputes
Redressal Commission is requested to
formulate regulations under Section
30A with the previous approval of the
Central Government within a period of
three months form today in order to
effectuate the power of administrative
control vested in the National
Commission over the State Commissions
under Section 24(B)(1)(iii) and in
respect of the administrative control
of the State Commissions over the
District fora in terms of Section
24(B)(2) as explained in this Judgment
to effectively implement the objects
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and purposes of the Consumer
Protection Act, 1986.”
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(4) On 4 March, 2017, the three-member committee
submitted a detailed report to the Court.
(5) The Union of India framed draft rules and
regulations which were placed for consideration before
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this Court. During the course of hearing on 07 March,
2017 a need for certain modifications to the Model Rules
was expressed by the learned Counsel representing
various parties.
nd
(6) The Union of India filed an affidavit on 22 March,
2017 wherein the Final Draft Model Rules were framed and
annexed as Annexure-II.
(7) In compliance with the directions issued by this
Court on 21 November 2016 and 15 December 2017, an
affidavit has been filed by the Union of India in April
2018. Paragraphs 9 and 10 of the affidavit are extracted
below :
“9. It is respectfully submitted
that there are two possible ways at
this juncture of the Central
Government in this behalf. One
method is that the Rules, which have
been framed by the Central
Government (in compliance with
Direction 18(iv) of the judgment
dated 21.11.16 that this Court would
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approve the rules) and which have
been filed alongwith the earlier
affidavit dated 22.3.17, will be
adopted by the State Governments by
framing appropriate rules in
exercise of the rule making power
under Section 30 of the Consumer
Protection Act 1986 upon approval by
this Court.
10. That the other method would be
that the Central Government, with
the approval of this Court awaits
the completion of the legislative
exercise regarding the proposed
consumer bill pending before the
Parliament and upon its completion,
frames the rules and notifies the
same, which would automatically be
applicable for all State Commissions
and District Forums under the
Consumer Protection Laws. The
Government is open and willing to
adopt any of the above mentioned two
methods which may be approved by
this Court.”
During the course of the hearing on 27 April 2018, a
consensus has emerged that the course suggested in
paragraph 9 of the above affidavit should be accepted.
Counsel for the Union of India has no objection since it
is in line with the suggestion contained in paragraph 9.
The State Governments shall complete the exercise within
a period of three months. The Registrar (Judicial) is
directed to forward a copy of this order to the Chief
Secretaries of all the States/Union Territories for
ensuring compliance.
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Infrastructure : National Consumer Disputes Redressal
Commission :
(i) Posts : Out of 204 additional posts required to be
created according to the norms recommended by the
Staff Inspection Unit, 51 posts have been created
leaving a balance of 153 posts.
We request the Union of India to consider the re-
quirement of the NCDRC for sanctioning additional posts
in the right perspective so that the efficacy of its work
is enhanced. This Court shall be apprised on the next
date of hearing of the action taken by the Union govern-
ment in that regard;
(ii)
Space : The affidavit filed on behalf of the NCDRC
indicates the dire necessity of procuring additional
space. The filing of cases has gone up by nearly 300
per cent, be it consumer complaints, first appeals
or revision petitions. This Court has been apprised
of the fact that there is no space available for
storing the files of fresh cases, which are lying in
the corridors. The record room of NCDRC is packed to
its capacity. An apprehension has been expressed
that unless the Union Government intervenes in the
matter on a pro-active basis, a stage will be
reached where due to space constraints, it will not
be possible to trace out files of cases to be heard
by the Benches. Further, due to the increased fil-
ing, there is a need to constitute additional
Benches. In the existing infrastructure, there is
little space for Court halls, Chambers and for the
supporting staff. NCDRC has addressed communications
on 20 January 2018 and 5 April 2018 to the Secre-
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tary, Ministry of Consumer Affairs, Government of
India placing a request for the allotment of addi-
tional space to the extent of 37,249 sq. ft. We are
sure that the Union of India will respond to the re-
quest of the NCDRC in the right perspective and will
make additional space available. The dearth of space
is seriously hampering the functioning of the NCDRC.
We commend to the Secretary in the Ministry of Con-
sumer Affairs the urgent necessity of taking steps,
in that regard. We expect that this Court would be
apprised of the decision of the Union government by
the next date of hearing;
(iii) Salaries, honorarium and other allowances of the
President and Members of the NCDRC:
NCDRC has proposed an amendment to Rule 11 of the Con-
sumer Protection Rules 1987. The Court has been apprised,
in the affidavit dated 22 March 2017, that in compliance
with the order dated 21 November 2016, draft Consumer
Protection (Amendment) Rules 1987 have been prepared in
consultation with the NCDRC and have been referred to the
Ministry of Finance for its concurrence.
This Court shall be apprised of the status of the matter
by the next date of hearing. A status report indicating
compliance with the above directions shall be filed by
the next date of hearing.
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(8) On 27 April, 2018 this Court heard all the parties,
including the Counsel appearing for all the States. The
said Model Rules were accepted by the Counsel
representing all the parties before the Court.
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Therefore, it is directed that the State Governments
shall frame appropriate rules in exercise of the
rule-making power under Section 30 of the Consumer
protection Act, 1986 in accordance with the Final Draft
Model Rules submitted by the Union of India.
(9) List on 28 August 2018.
..........................CJI
(DIPAK MISRA)
..........................J
(DR. D.Y. CHANDRACHUD)
..........................J
(INDU MALHOTRA)
New Delhi,
MAY 18, 2018
.