Lawstreet Journal

Value of Goods and Services ‘Paid’ as consideration Determine Pecuniary Jurisdiction [READ ORDER]

Lawstreet Journal 8 Sep 2020 1:17am

Image courtesy: Lawstreet Journal Judiciary Value of Goods and Services ‘Paid’ as consideration Determine Pecuniary Jurisdiction [READ ORDER]

The National Consumer Dispute Redressal Commission (NCDRC) held in a order that the pecuniary jurisdiction of Consumers for a is to be determined by the value of goods/services “paid” as consideration without including the value of goods/services “purchased”. 

The consumer complaint was filed by a Kolkata based factory against its insurer, National Insurance Company Ltd. The case was of M/S. Pyaridevi Chabirajn Steels Pvt. Ltd. v. National Insurance Company Ltd. & Ors. The complaint was that the applicant had wrongly repudiated their insurance claim worth, Rs.28,00,20,000/- which was purchased by the company by paying a premium of Rs.4,43,562/-. 

The commission opined that the value of the consideration paid in the present case was “less” than Rs.10,00,00,000/- (pecuniary jurisdiction of NDCRC, as per Section 58(1)(a)(i) of the Consumer Protection Act, 2019 which states that:- “complaints where the value of the goods or services paid as consideration exceeds rupees ten crores”, it had to be determined whether the complaint shall be maintainable before it.

The court observed that since this case is governed under Consumer Protection Act, 1986, NCDRC has the jurisdiction over the matter as the pecuniary jurisdiction in the matter where the Act of 1986 is applied is determined by “value of the goods or services and compensation”, it means that the value of goods or services and also the compensation would be added to reach a conclusion as to whether the National Commission has the jurisdiction or not. Section 21(a)(i) of Consumer Protection Act, 1986, under this the National Commission have the… Continue Reading...

Tagged: National Consumer Dispute Redressal Commission   NCDRC  
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