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Mahesh (none)     02 September 2011

Menaing of pecuniary jurisdiction of consumer forum

There is doubt in understanding the meaning of the pecuniary jurisdiction of consumer forums as mentioned in the consumer protection act. The section 11, 17 and 21 of the consumer protection act states

11. Jurisdiction of the District Forum.--( I) Subject to the other provisions of this Act, the
District Forum shall have jurisdiction to entertain complaints where the value of the goods or
services and the compensation, if any, claimed 2[ does not exceed rupees twenty lakhs].

17. Jurisdiction of the State Commission.-Subject to the other provisions of this Act,
the State Commission shall have jurisdiction-
(a) to entertain-
(i) complaints where the value of the goods or services and compensation, if any,
claimed exceeds rupees 1 [exceeds rupees twenty lakhs but does not exceed rupees one
crore ; )

21. Jurisdiction of the National Commission.-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 and compensation, if any, claimed exceeds rupees l[twenty lakhs];

Now let us assume that there was a dispute regarding a resdeintial flat. A consumer bought a flat for Rs. 2 Crores. The builder/seller promised to handover posession of the flat 3 years from the time of purchase. When posesssion was nearing the builder invited the flat owner for inspection. The flat owner found that the one door for a room within the flat is broken. The flat owner complained to the seller/builder but the builder did not redress this complaint. Now the flat owner wants to approach consumer forum.

Question 1: Which forum will have jurisdiction of this case? Just because the cost of flat is 2 crores does it mean that the National consumer forum has jurisdiction?

Question 2: Will cost of flat even matter in the determination of jurisdiction of consumer forum in this case?

Question 3: Is a resdiential flat count as goods ('value of goods exceed 1 crore' as per act)? what is the defination of goods in Sale of goods act as this act is refered by conusmer protection act for the defination of 'goods'?

Question 4: Won't the 'deficiency in service' be the only factor in the determination of jurisdiction of consumer forum in this case?

 

 



Learning

 8 Replies

adv. rajeev ( rajoo ) (practicing advocate)     02 September 2011

Jurisdiction depends on the compensation what you will claim.

Mahesh (none)     02 September 2011

Thanks for your reply. That means the cost of residential flat/house does not factor in the determination of pecuniary jurisdiction in this case. Am i right?

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     03 September 2011

dear mahesh,

cost of flat only decides the jurisdiction to file complaint before district consumer forum, state commission.

Regards

Rajiv Bhasin

Advocate

Bhasin & Associates

9811210505, 9868635640

Mahesh (none)     03 September 2011

Hi Rajiv, your responce is not clear. Which forum do you think has the jurisdiction in this case?

DISHA D. SHAH (lawyer)     05 September 2011

what is cost of one door?? ofcourse below rs.20lakh so in district forum simply

Arun Kumar Mishra (Advocate & Consultant)     11 July 2014

Dear Mahesh

Gone through your queries.

Your situation as explained although two year back…

“Now let us assume that there was a dispute regarding a residential flat. A consumer bought a flat for Rs. 2 Crores. The builder/seller promised to handover possession of the flat 3 years from the time of purchase. When possession was nearing the builder invited the flat owner for inspection. The flat owner found that the one door for a room within the flat is broken. The flat owner complained to the seller/builder but the builder did not redress this complaint. Now the flat owner wants to approach consumer forum.”

Note : Basic questions need to be answered by you…

1.        When you booked Flat?

2.       What is price of Flat?

3.       How much you have paid?

4.       When is delivery date as per Agreement? As you stated within three years… but from which date?

Now at that point of time only Promise to give possession and before possession inspection  was offered and you found certain defects.

 

For Jurisdiction.. Pecuniary… Cost of Flat + defect + delayed cost if any, will constituent of Pecuniary jurisdiction.

 

District Forum upto Rs. 20 lacs.

State Commission between Rs. 20 lacs and 1 Crores

National Commission more than 1 crores.

 

 

Question 1: Which forum will have jurisdiction of this case? Just because the cost of flat is 2 crores does it mean that the National consumer forum has jurisdiction? Yes

Question 2: Will cost of flat even matter in the determination of jurisdiction of consumer forum in this case? Yes

Question 3: Is a residential flat count as goods ('value of goods exceed 1 crore' as per act)? what is the definition of goods in Sale of goods act as this act is referred by consumer protection act for the definition of 'goods'? Goods is your Flat. Defect and deficiency is your service.

Question 4: Won't the 'deficiency in service' be the only factor in the determination of jurisdiction of consumer forum in this case? No. Deficiency is your cause of action, hence claim for deficiency.

Regards

Arun K Mishra

for MISHRA & ASSOCIATES

5GF, Plot No. 39, Street No. 2

East Guru Angad Nagar

Delhi-110092

Contact (+91) 8800628886

Jay (student)     06 November 2014

hello Arun Kumar Mishtra your reply is really helpful.Can you please help us with some cases or precedents realted to reply regarding pecuniary jurisdiction (query asked my Mahesh).
it would be really helpful if you could provide it at the earliest.
thank you

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     08 November 2014

Ms. Disha Shah is right and to the point. I cannot agree with Advocate Arun Kumar Misra. What is the case it is not clear. Has the builder given possession of the flat or is he insisting that he will give possession only if the buyer accepts the flat as it is with no repair of the door and no claim for any repair? Notwithstanding the stand of the builder, the buyer has a number of options. 1. Accept the flat with the broken door under protest with evidences such as photographs and witnesses. File complaint before the Consumer Forum for the actual restoration of the door or cost for such restoration. His further claims can include cost of inconvenience of living in a flat with broken door, inconveniences during repair of the door, mental agony and any other thing that can occur in his fertile imagination. All of them put together cannot even reach Rs.20 lakhs. So District Forum in his court. 2. The buyer refuses to accept the flat with a broken door and asks the Builder to reverse all the transactions from the time of booking of the Flat. If the builder does not accept to reverse the transaction the buyer can ask for return of all amounts he has paid plus so many other things. The cost will well exceed one crore and the buyer will have to approach the National Forum only. 3. I would like to know from the buyer if he has any further option. For any dispute there will be three costs viz. (a) the cost claimed by the Complainant, (b) the maximum cost, if any, the Opposite Party is prepared to pay and (c) the final award of the court. The cost claimed by the Complainant will be the highest. That will decide the pecuniary jurisdiction. The Complainant stakes his claim as high as he thinks. If his stakes are high he will have to go to a higher court. Otherwise also his costs will increase. Finally he will get only what the court awards. Hence prudency demands that his stakes are reasonable and realistic. Advising a Complainant to keep his stakes high would amount to sending him to fool’s paradise. The builder also will be prudent. He would rather repair the door and settle the matter.

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