Pecuniary Jurisdiction of Consumer Commission now shall be considered on the basis of actual loss and not adding compensation etc. Section of Consumer Protection Act 2019

 Pecuniary Jurisdiction of Consumer Commission now shall be considered on the basis of actual loss and not adding compensation etc. Section  of Consumer Protection Act 2019

National Consumer Disputes Redressal Commission (NCDRC) has held that for determining the pecuniary jurisdiction of Consumer commissions , the value of the goods/ services “paid” as consideration shall  be the method.

Earliar principal of including compensation and other charges for calculating and deciding jurisdiction is no more in operation after new Act 2019 came into force . Parliament was conscious about the fact that consumers were raising their compensation amount at their choice in order to go to the higher commission It lead to difficulty before the commissions at the stage of admitting the cases 

A case of M/S. Pyaridevi Chabiraj Steels Pvt. Ltd. v. National Insurance Company Ltd. & Ors.issue in hands ,the issue to decide was about repudiation of insurance claim. It was alleged by the party that they had paid an amount of Rs  4,43,562/-as premium for a policy worth Rs. Rs.28,00,20,000/- which was purchased by insurance company.

 In a significant order  by National Commission in this case ,reference is made to section Sections 34 (1), 47 (1) (a) (i) and 58 (1) which provides for the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission and the National Commission and Commission held that for determining the pecuniary jurisdiction of Consumer commissions , the value of the goods/ services “paid” as consideration shall  be the method.

Case NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

NEW DELHI

CONSUMER CASE NO. 833 OF 2020

1. M/S. PYARIDEVI CHABIRAJ STEELS PVT. LTD. ………..Complainant(s)

Versus

1. NATIONAL INSURANCE COMPANY LTD. & 3

ORS. ………..Opp.Party(s)

Consumerism

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