1

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 present civil appeal and writ petition pertains to the paucity of infrastructure in the Consumer Fora all over the country.

(2) This  Court  vide  order  dated  14th January,  2016

2

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.

(3) By Order dated 21st 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

3

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

4

and  purposes  of  the  Consumer Protection Act, 1986.”

(4) On  4th 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 this Court.  During the course of hearing on 07th March, 2017 a need for certain modifications to the Model Rules was  expressed  by  the  learned  Counsel  representing various parties.

(6) The Union of India filed an affidavit on 22nd 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

5

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.

6

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-

7

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.  

(8)  On 27th 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.

8

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.