Laws laid down by supreme court
-Pecuniary Jurisdiction of Consumer Commissions now shall be considered on the basis of actual loss, i.e. value of the goods or services paid as consideration
SUMMERY
M/s. Pyaridevi Chabiraj Steels Pvt.
Ltd. V/S. National Insurance Company Ltd. & Ors (NC)
Case No 833/2020
Decided on 28.08.2020
Legal Point -Pecuniary Jurisdiction of Consumer Commissions
now shall be considered on the basis of actual loss, i.e. value of the goods or
services paid as consideration
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.
Earlier
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.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
and prayed compensation and other charges shall not be the part for considering
the issue of jurisdiction of the commission .
Become a Member of the new revolution "Consumer Awakening" and instantly expand your knowledge with the Important Landmark Judgements, Laws Laid down by the Supreme Court for Consumer Rights, Get access to hundreds of Featured Articles in 2 different Languages; English and Hindi - a valuable professional resource to draw upon, and a powerful, collective voice to advocate for your protection of rights as a consumer nationwide.
Thank you for your interest in becoming a "Consumer Awakening" Member!
You will find information on Customer Rights, what we're doing and how to become a member. If you are looking forward to become a member of our portal and gain access to Hundreds of Featured Articles which will clearly give you an insight of yoru rights as a Consumer, then Read Further. more detail on our technologies and technology process,
