Shri Ganpati Jurists Learning and Awareness:
Legal Learning | Consumer Protection Act, 2019
Supreme Court: Value of Goods/Services Paid is the Basis for Forum Jurisdiction — Not Compensation Claimed
The Supreme Court has upheld the constitutionality of Sections 34, 47, and 58 of the Consumer Protection Act, 2019, which determine the pecuniary jurisdiction of Consumer Forums based on the consideration paid (i.e., purchase price of goods/services), and not on compensation claimed.
Key Takeaways:
Jurisdiction is validly based on “value of consideration”, not the claimed damages.
This classification has a rational nexus to the law’s objective — i.e., structured access to redressal forums.
It is neither arbitrary nor violative of Article 14 of the Constitution.
Current Pecuniary Jurisdiction Limits (Rule 2021):
District Commission: Up to ₹50 lakhs
State Commission: ₹50 lakhs – ₹2 crores
National Commission: Above ₹2 crores
The Court emphasized:
The purchase price is more objective and closer to real valuation than self-assessed damages.
The hierarchical structure of forums must be preserved to avoid overburdening higher forums.
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