Jurisdiction in consumer protection laws

Section 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].

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,-

(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or 2[carries on business or has a branch office or] personally works for gain, or

(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or 2[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or 2[ carry on business or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or

(c) the cause of action, wholly or in part, arises.

 

COMMENTS

(i) Objection & regarding territorial jurisdiction should be taken at the earliest opportunity or the same deemed to have been waived; Kurukshetra University v. Vinay Prakash Verma, II (1993) CPJ647.

(ii) A petition of complaint can be filed against corporation carrying on business within the territory of District Forum or Commission even though its sole or principal office is situated outside state limits; Consumer Education and Research Society v. Canara Bank, (1991t I CPR 405.

  1. Ins. by Act 50 of 1993, sec. 8 (w.e.f. 18-6-1993).

  2. Subs. by Act 50 of 1993, sec. 9 (w.e.f. 18-6-1993).

 

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1 Comment

  • Ram mohan says:

    Very informative. Thank you.
    I have a query:
    A Builder in its scheme has a condition that an allottee can opted out from the scheme ,if the required building approval is not granted by a specific date, In that situation it was agreed to refund the entire principal amount deposited along with interest@15%. An allottee has opted out as per the term. Builder did not pay the interest though refunded the principal. Alottee filed compliant in Dist consumer forum for interest and compensastion.. Dist. Forum rejected the complaint stating that there is no jurisdiction of the forum for payment of Interest.
    Is there any rule/Supreme court judgement like that?

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