SC upholds Bombay HC verdict setting aside Consumer Act provisions by centre

The Supreme Court on Friday upheld a Bombay high court ruling that made it mandatory for the President and members of state and district consumer forums to be appointed through written examination and allow graduates with 10 years of work experience in consumer affairs, law, public affairs and other specialized fields to be eligible for heading or joining as a member of these forums.

The Supreme Court’s ruling came on an appeal filed by the ministry of consumer affairs that challenged a Nagpur bench order of the Bombay high court of September 2021 striking down certain provisions of the Consumer Protection Rules 2020.

Also Read: SC verdict on ECI marks an inflection point

The top court while dismissing the centre’s appeal, directed that till the time, the centre brings a law, in future and hereinafter, a person having a bachelor’s degree from a recognized university and who is a person of ability, integrity and standing, and having special knowledge and professional experience of not less than 10 years in consumer affairs, law, public affairs, administration, economics, commerce, industry, finance, management, engineering, technology, public health or medicine, shall be treated as qualified for appointment of President and members of the state commission and district commission.

This means that lawyers with at least 10 years standing are eligible for appointment as President and members of state and district consumer commissions.

The Bombay high court struck down the earlier threshold of 20 years fixed for state commissions and 15 years for district commissions fixed under the 2020 Rules to be unconstitutional.

The order pertains to the New 2020 Rules framed by the central government u/s 101 of the Consumer Protection Act, 2019 for appointments, qualifications, eligibility, removal of members of the state consumer commission, and district consumer forums functioning in India.

The bench of justices MR Shah and MM Sundresh further used its extraordinary powers under Article 142 of the Constitution to direct that for the appointment of the President and members of state and district commissions, the appointment shall be made based on their performance in the written test.

This was done to bring transparency in appointments to consumer forums and to end “uncontrolled discretion” available to the government to get their nominees appointed through the selection committee.

“In absence of transparency in the matter of appointments of President and Members and in absence of any criteria on merits the undeserving and unqualified persons may get an appointment which may frustrate the object and purpose of the Consumer Protection Act,” the bench said.

The apex court further noted that the standards expected from the members of the tribunal should be as nearly as possible as applicable to the appointment of judges exercising such power.

Also Read: Can’t prescribe 50% quota for women in National Defence Academy: Supreme Court

Under Rule 6(9) of the 2020 Rules, struck down as unconstitutional by the Bombay HC, the selection committee was given “excessive and uncontrolled discretionary powers” to make appointments.

“It is always desirable that while making the appointment as members of the district fora and/or the state commission there is a need to assess the skill, ability, and competency of the candidates before they are empanelled and recommended to the state government,” the bench said.

The centre had opposed the Bombay high court’s decision by stating that in a meeting convened by the central government with states, the idea of holding an examination was not accepted as it was ridden with several problems.

The Bombay HC order came on a public interest litigation filed by Mahindra Bhaskar Limaye and others who pointed out that the selection process under the 2020 Rules violated earlier top court decisions prescribing uniform standards in making appointments to tribunals and to eschew bureaucratic and political interference in selecting candidates.