Question

According to Consumer protection Act, the National Commission shall have jurisdiction over complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees

• A. 2 lakhs
• B. 10 lakhs
• C. 20 lakhs
• D. 50 lakhs

Hint:

Pecuniary jurisdiction under the Consumer Protection Act is a frequently tested topic. Always be aware of the most recent amendments. For the exam, note the current limits under the CPA 2019: District (up to 50L), State (50L to 2Cr), National (above 2Cr).

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The Consumer Protection Act establishes a three-tier quasi-judicial machinery for redressing consumer grievances. These are the District Forum, the State Commission, and the National Commission. Their jurisdiction is primarily determined by the monetary value of the claim, known as pecuniary jurisdiction. This question appears to be based on the pecuniary limits set by the original Consumer Protection Act of 1986.
Step 2: Detailed Explanation:
Under the original Consumer Protection Act, 1986, the pecuniary jurisdictions were as follows:
\begin{itemize} \item District Forum: For claims up to ₹20 lakhs (this limit was revised over time, but for a significant period, it was up to ₹20 lakhs). \item State Commission: For claims exceeding ₹20 lakhs and up to ₹1 crore. \item National Commission: For claims exceeding ₹1 crore. \end{itemize} However, the options provided (2 lakhs, 10 lakhs, 20 lakhs, 50 lakhs) suggest that the question is from an older examination paper, referring to the jurisdiction limits as they stood after an early amendment but before the one that raised the National Commission's limit to ₹1 crore. In one of the earlier structures, the National Commission's jurisdiction began for claims exceeding ₹20 lakhs.
Let's analyze based on the options: The structure was once: District (up to 5 lakhs), State (5 lakhs to 20 lakhs), and National (exceeding 20 lakhs). This structure makes option (C) the correct answer for that time frame.
Note on Current Law (Consumer Protection Act, 2019): For awareness, the limits have been significantly revised under the new Act. As of the latest amendments:
\begin{itemize} \item District Commission: Up to ₹50 lakhs. \item State Commission: Over ₹50 lakhs and up to ₹2 crores. \item National Commission: Over ₹2 crores. \end{itemize} Step 3: Final Answer:
Based on the options provided and the likely context of the original Act's framework when this question was framed, the National Commission's jurisdiction began for complaints exceeding ₹20 lakhs.