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2021 Supreme(SC) 149

SUPREME COURT OF INDIA
DHANANJAYA Y CHANDRACHUD, M.R. SHAH, JJ.
NEENA ANEJA AND ANOTHER - APPELLANT
VERSUS
JAI PRAKASH ASSOCIATES LIMITED - RESPONDENT
Civil Appeal Nos. 3766-3767 of 2020
Decided on : 16-03-2021

Advocates:
Advocate Appeared:
For the Appellant :Mr. P. Vinay Kumar, Advocate
For the Respondent:Mr. Krishnan Venugopal, Sr. Advocate, Mr. Vishal Gupta, Advocate, Mr. Sumeet Sharma, Advocate, Mr. Divyanshu Gupta, Advocate

IMPORTANT POINTS
(1) Proceedings instituted before commencement of Consumer Protection Act, 2019 on 20 July 2020 would continue before Fora corresponding to those under Act of 1986 (National Commission, State Commissions and District Commissions) and not be transferred in terms of pecuniary jurisdiction set for Fora established under Act of 2019.
(2) Repeals or amendments that effect changes in forum would ordinarily affect pending proceedings, unless a contrary intention appears from the repealing or amending statute.
(3) All procedural law is retrospective, unless a contrary legislative intention can be observed.


Headnote:

(A) Consumer Protection Act, 2019 – Sections 106 and 107General Clauses Act, 1897 – Section 6 – Consumer Complaint – Maintainability – Proceedings instituted before commencement of Act of 2019 on 20 July 2020 would continue before Fora corresponding to those under Act of 1986 (National Commission, State Commissions and District Commissions) and not be transferred in terms of pecuniary jurisdiction set for Fora established under Act of 2019 – Mere use of word “entertain” in defining jurisdiction is not sufficient to counteract overwhelming legislative intention to ensure consumer welfare and deliberately not provide for a provision for transfer of pending proceedings in Act of 2019 or under Section 106 of Act of 2019 which is a power to remove difficulties for a period of two years after commencement of Act of 2019 – Legislature cannot be attributed to be remiss in not explicitly providing for transfer of pending cases according to new pecuniary limits set up for Fora established by new law, were that to be its intention – Omission, when contextualized against statutory scheme, portends a contrary intention to protect pending proceedings through Section 107(2) of Act of 2019. (Paras 69, 70 and 71)

(B) General Clauses Act, 1897 – Section 6 – Repeal of Act – Consequences – Change of forum generally operates retrospectively, irrespective of whether cause or right of action had accrued earlier – Once change in forum had been effected, litigant would have to be directed to new forum – If repealing act provides a new forum where remedy or legal proceeding in respect of such vested right can be pursued after repeal, forum must be as provided in repealing Act – Change in forum is indubitably in realm of procedural law that applies retrospectively, unless Statute provides otherwise – Law relating to forum and limitation is procedural in nature, whereas law relating to right of action and right of appeal even though remedial is substantive in nature – Forum for determination of a lis, whether in case of an appeal or in situations where right of action had accrued, is in realm of procedural law – All procedural law is retrospective, unless a contrary legislative intention can be observed. (Paras 23, 25, 28, 42 and 53)

Facts of the case:

Issue which arises in the appeals is whether a complaint which was filed and registered under the Act of 1986, before the new Act of 2019 came into force, has to be entertained under the provisions of the erstwhile legislation.

Findings of Court:

In considering the myriad precedents that have interpreted the impact of a change in forum on pending proceedings and retrospectivity- a clear position of law has emerged: a change in forum lies in the realm of procedure. Accordingly, in compliance with tenets of statutory interpretation applicable to procedural law, amendments on matters of procedure are retrospective, unless a contrary intention emerges from the statute.

Result : Appeals allowed.

Judgement Key Points

Analysis of Pecuniary Jurisdiction of Permanent Lok Adalat under Section 22C(1) of the Legal Services Authorities Act, 1987

The pecuniary jurisdiction of a Permanent Lok Adalat (PLA) is determined by government notifications issued under Section 22C(1), which empower the Central or State Government to specify the monetary limit (initially capped at rupees one crore, subject to periodic enhancements via notifications). These notifications alter the threshold value of disputes relating to public utility services that the PLA can "entertain." (!) (!) (!) (!) (!) (!) (!) The core issue—whether an enhancement in the notified pecuniary limit (e.g., from ₹10 lakh to ₹25 lakh or ₹1 crore) applies based on the date of cause of action or the date of filing of the application—turns on settled principles of statutory interpretation governing changes to procedural jurisdiction, particularly forum and pecuniary limits. (!) (!) (!) (!) (!) (!) (!)

1. Pecuniary Jurisdiction is Procedural in Nature

  • Changes to pecuniary limits, including enhancements via notifications or amendments, fall within the domain of procedural law, akin to alterations in forum. (!) (!) (!) (!) (!) (!) (!) (!) (!) Procedural laws are presumed retrospective, applying to pending proceedings unless a contrary legislative intention is evident from express words or necessary implication. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!)
  • The expression "entertain" in jurisdictional provisions (mirroring Section 22C(1)) connotes adjudication on merits and is not confined to the institution stage but extends to proceedings at the time they are taken up for consideration. (!) (!) (!) (!) (!) (!) (!) However, this does not override savings for pre-existing proceedings. (!)

2. Applicable Limit Determined by Date of Filing/Institution, Not Cause of Action

  • The date of filing/institution of the application governs the applicable pecuniary limit, as it crystallizes the right to pursue the remedy before the designated forum under the law prevailing on that date. (!) (!) (!) (!) (!) (!) (!) (!) A validly instituted proceeding before a forum competent under the pre-enhancement limit continues thereunder, unaffected by subsequent notifications increasing the threshold, absent a transfer provision or contrary intent. (!) (!) (!) (!) (!) (!)
  • The date of cause of action is irrelevant for determining pecuniary jurisdiction, as it pertains to accrual of substantive rights, not procedural competence to entertain disputes. (!) (!) (!) (!) Rights accruing pre-notification (e.g., under old limit) are preserved, and proceedings filed thereon proceed under the notified limit as on the filing date. (!) (!) (!) (!) (!) (!) (!)
  • Enhancements operate prospectively for fresh filings post-notification but do not mandate transfer of pending applications filed earlier, to avoid dislocation, hardship, and defeat of legislative intent (e.g., expeditious resolution of public utility disputes). (!) (!) (!) (!) (!) (!) (!) (!)

3. No Vested Right to a Specific Forum; Presumption Against Transfer Absent Contrary Intent

4. Practical Implications and Directions from Precedent

  • Pre-enhancement filing (value exceeding old limit but within new): Incompetent; PLA returns application for presentation elsewhere if value exceeded old notified threshold on filing date. (!) (!)
  • Post-enhancement filing: Competent if within new limit. (!) (!)
  • Pending on enhancement date: Continues under old limit/forum; no automatic transfer, preserving judicial economy and access to justice. (!) (!) (!) (!) (!) (!)
  • Courts direct continuation before original PLA, set aside dismissals for want of jurisdiction post-enhancement, and impose costs for frivolous challenges. (!) (!) (!)

In summary, Supreme Court exposition confirms the pecuniary limit under Section 22C(1) notifications is fixed by the date of filing the application, ensuring procedural stability for instituted disputes while allowing enhancements to apply prospectively to new filings. High Courts align, emphasizing no prejudice from unaltered forum absent explicit transfer intent. (!) (!) (!) (!) (!) (!)


JUDGMENT :

DHANANIAVA Y CHANDRACHUD, J.

Index

A. Background

B. Submissions

B.1. Submissions of the appellants

B.2. Submissions of the respondent

C. Position of law on change of forum: An analysis of precedent

    C.1. Venugopala Reddiar (1943- Federal Court 3 judges)

    C.2. Kiran Singh v. Chaman Paswan (1954- Supreme Court 4 judges)

    C.3. Garikapati (1957- Supreme Court Constitution Bench)

    C.4. Mohd. Idris (1965- Supreme Court Constitution Bench)

    C.5. Manujendra Dutt (1966- Supreme Court 2 judges)

    C.6. New India Assurance (1975- Supreme Court 3 judges)

    C.7. Maria Cristina (1978- Supreme Court 2 judges)

    C.8. Hitendra Vishnu Thakur (1994- Supreme Court 2 judges)

    C.9. Sudhir G Angur (2005- Supreme Court 3 judges)

    C.10. Ramesh Kumar Soni (2013- Supreme Court 2 judges)

    C.11. Dhadi Sahu (1992- Supreme Court 2 judges)

    C.12. Ambalal Sarabhai (2001- Supreme Court 2 judges)

    C.13. HP State Electricity (2013- Supreme Court 2 judges)

    C.14. Videocon International (2015- Supreme Court 2 judges)

    C.15. SEBI v. Classic Credit (2018- Supreme Court 2 judges)

    C.16. Swapna Mohanty (2018- Supreme Court 2 judges)

    C.17. Om Prakash Agarwal (2018- Supreme Court 2 judges)

    C.18. Delhi High Court Bar Association (1993- Delhi HC-DB)

    C.19. Mahendra Jain (2008- Bombay HC-DB)

    C.20. Vallabhaneni (2004- Andhra Pradesh HC- 5 judges)

    C.21. Gobardhan Lal Soneja (1991-Patna HC-FB)

    C.22. Y.B. Ramesh (2010-Karnataka HC-SJ)

    C.23. Conclusion on the position of law

D. Legislative Scheme of the jurisdictional provisions

E. Legislative intendment underlying Section 107 of the Act of 2019

F. Summation

A Background

1. On being enacted by Parliament, the Consumer Protection Act 2019["Act of 2019"] was published in the Gazette of India on 9 August 2019[The Act was published in the Gazette of India Extraordinary, Part II, Section 1, No. 54 dated 9 August 2019]. By S.O. 2351 (E) dated 15 July 2020, the material provisions of the Act of 2019 were notified to come into force on 20 July 2020. By S.O. 2421 (E) dated 23 July 2020 several other provisions were brought into force, with effect from 24 July 2020. The appellants instituted a consumer case[Consumer Case no. 566 of 2020 (NCDRC)] before the National Consumer Disputes Redressal Commission["NCDRC"] on 18 June 2020. The consumer case was instituted under the provisions of the erstwhile legislation, the Consumer Protection Act 1986["Act of 1986"]. The NCDRC by its order dated 30 July 2020 dismissed the consumer case on the ground that after the enforcement of the Act of 2019, its pecuniary jurisdiction has been enhanced from rupees one crore to rupees ten crores. The appellants' review petition was also dismissed by the NCDRC on 5 October 2020. In the present case, the claim of Rs. 2.19 crores is below the enhanced pecuniary jurisdiction of the NCDRC.

2. The complainants in the consumer case are in appeal.

3. The issue which arises in the appeals is whether a complaint which was filed and registered under the Act of 1986, before the new Act of 2019 came into force, has to be entertained under the provisions of the erstwhile legislation. In anticipation of the enforcement of the Act of 2019, an administrative notice was issued by the NCDRC on 17 July 2020 to allow the functioning of its registry for fresh filings on 18 July 2020, since the new law was to come into force on 20 July 2020. The appellants are also aggrieved by the fact that contrary to the position taken in its case, other Benches of the NCDRC have admitted complaints instituted before 20 July 2020. This grievance apart, the issue which arises in the appeals would turn upon a construction of Section 107 of the Act of 2019, among other provisions of the new legislation, and its interplay with Section 6 of the General Clauses Act 1897["General Clauses Act"]. The analysis of the Court, despite the new legislation, will not proceed on a clean slate for there is precedent which holds the field. That both sid


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