M. R. SHAH, M. M. SUNDRESH
Secretary Ministry of Consumer Affairs – Appellant
Versus
Mahindra Bhaskar Limaye – Respondent
What are the rights of President and Members of State and District Commissions regarding appointment qualifications and selection procedures under the Consumer Protection Rules, 2020? What are the constitutional grounds for declaring Rule 3(2)(b), Rule 4(2)(c), and Rule 6(9) of the Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of President and Members of State Commission and District Commission) Rules, 2020 as arbitrary and violative of Article 14? How to amend the Consumer Protection Rules, 2020 to ensure transparent appointment procedures including written tests and viva voce for President and Members of State and District Commissions?
Key Points: - The Supreme Court held that Rule 3(2)(b), Rule 4(2)(c), and Rule 6(9) of the Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of President and Members of State Commission and District Commission) Rules, 2020 are arbitrary, unreasonable, and violative of Article 14 of the Constitution of India (!) (!) (!) . - Rule 6(9) is unconstitutional because it confers uncontrolled discretion on the Selection Committee to determine its own procedure without objective criteria, which frustrates the object of the Consumer Protection Act (!) (!) (!) . - The Court directed that the selection process must include a written test consisting of two papers (100 marks each) and a viva voce (50 marks) to assess the competency of candidates appointed to discharge judicial functions (!) (!) (!) . - The experience requirement for appointment as a Member of State Commission was reduced from 20 years to 10 years, and for District Commission from 15 years to 10 years, to align with constitutional standards (!) (!) (!) . - The Central Government and State Governments are directed to amend the Rules, 2020 to incorporate the new selection procedure and qualification criteria within the framework of the Model Rules, 2017 (!) (!) . - The Court emphasized that the lack of transparency and fixed criteria in the previous rules led to apprehensions of political and executive interference in appointments (!) (!) (!) . - The judgment reaffirmed that Consumer Commissions are quasi-judicial authorities empowered with the powers of civil courts, necessitating high standards for the appointment of their members (!) (!) . - The Court directed that until suitable amendments are made, persons with a bachelor's degree, ability, integrity, standing, and 10 years of relevant experience shall be treated as qualified for appointment (!) . - The Court noted that the Consumer Protection Act, 2019 did not substantially change the adjudicatory scheme, thus providing no justification for removing the written examination mechanism (!) . - The Court observed that the previous Rules, 2020 were impermissible legislative overrides of earlier Supreme Court decisions in UPCPBA and Madras Bar Association cases without sufficient justification (!) (!) .
JUDGMENT :
M.R. Shah, J.
1. Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 14.09.2021 passed by the High Court of Judicature Bombay at Nagpur Bench at Nagpur in Public Interest Litigation No. 11/2021 and Writ Petition No. 1096 of 2021, by which, the Division Bench of the High Court has struck down and has declared Rule 3(2)(b), Rule 4(2)(c) and Rule 6(9) of the Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of President and Members of State Commission and District Commission) Rules, 2020 (hereinafter referred to as the Rules, 2020) as arbitrary, unreasonable and violative of Article 14 of the Constitution of India, the Ministry of Consumer Affairs, Union of India and State of Maharashtra have preferred the present appeals.
2. In exercise of powers conferred by Sections 29 and 43, read with clauses (n) and (w) of Subsection (2) of Section 101 of the Consumer Protection Act, 2019 (hereinafter referred to as the Act, 2019), the Ministry of Consumer Affai
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Madan Mohan Pathak v. Union of India (1978) 2 SCC 50 [Para 6.2] – Relied.
Medical Council of India v. State of Kerala (2019) 13 SCC 185 [Para 6.2] – Relied.
S.R. Bhagwat v. State of Mysore (1995) 6 SCC 16 [Para 6.2] – Relied.
Sri Ranga Match Industries v. Union of India 1994 Supp2 SCC 726 [Para 6.2] – Relied.
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