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2026 Supreme(Online)(SCDRC) 2907

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Kalyani Kapse, Presiding Member, Shaila D. Wandhare, Member
Snehalata Shankar Luley – Appellant
Versus
Regional Transport Commissioner – Respondent
FIRST APPEAL NO. SC/CB2/27/A/446/2014



Advocates:
For the Appellants/Petitioners: Tushar Mandlekar
For the Respondents: Girish Dubey

Statutory authorities performing functions for consideration are not immune to consumer jurisdiction. If a function is not a core sovereign act, it constitutes a service, and its non-performance or delay amounts to deficiency in service under the consumer law.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(d) and 2(o) - Definition of Consumer and Service - Maintainability of complaint against statutory bodies - Statutory authorities performing non-sovereign functions for consideration are not immune from consumer litigation - Test is the nature of duty and function performed whether it is a service or facility - (Para 19, 20, 30, 36).

(B) Deficiency in Service and Unfair Trade Practice - Delay in issuance of smart card driving license beyond stipulated period in citizens' charter - Charging of mandatory fees for peripheral services by government departments - Acts not categorized as core sovereign functions which lack consideration are subject to consumer forum jurisdiction - (Para 8, 14, 38, 41).

Facts of the case:
The complainant applied for a duplicate driving license and paid the requisite fees. The authorities failed to issue the smart card format license within the stipulated time mentioned in the citizens' charter, leading to a delay of over 30 days. The complaint alleged deficiency in service and unfair trade practices due to the forced requirement of smart cards and subsequent delays, which the authorities contested on the grounds of lack of jurisdiction.

Findings of Court:
The court found that the service provider was liable for the delay. The contention that the department was merely performing a sovereign function was rejected because the issuance of a smart card involved a specific consideration and was a severable commercial-like activity. The delay caused mental and physical harassment to the complainant.

Issues: Whether a statutory authority providing services for fees is amenable to the jurisdiction of consumer forums, and whether a delay in providing such services constitutes a deficiency in service and unfair trade practice.

Ratio Decidendi: The court ruled that statutory bodies performing welfare activities or functional tasks in exchange for consideration are service providers under the relevant act. Sovereign function immunity does not extend to services that are severable and provided for a consideration. Failure to deliver a promised service within a stipulated time frame constitutes deficiency in service.

Result: Appeal partly allowed. Compensation and litigation costs awarded to the complainant.

Table of Content
1. factual background regarding the dispute over driving license issuance. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments establishing rto services as defined by the consumer protection act. (Para 12 , 13 , 14 , 15 , 17 , 18 , 19 , 23)
3. applicability of consumer protection act to statutory/sovereign bodies. (Para 20 , 21 , 22 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 43 , 45)
4. distinction between sovereign functions and commercial service-oriented functions. (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 44 , 46 , 47 , 48)
5. final order granting compensation for deficiency in service. (Para 49 , 50)

ORDER

(Delivered on 30/03/2026)

Per Mrs Kalyani Kapse, Hon’ble Presiding Member

1. The present appeal is preferred by the Appellant/Original Complainant namely Ku. Snehlata D/o. Shankar Luley, Nagpur against the Order and Judgement dtd. 25/07/2014 in Complaint No. CC/650/2011 passed by learned District Consumer Dispute Redressal Forum, Nagpur (Hereinafter referred as “The Forum”) under section 15 of the Consumer Protection Act, 1986. (for the sake of brevity “The Act”)

2. The learned Forum, Nagpur dismissed the complaint filed under section 12 of the Act and hence this appeal. The brief facts of the appeal mentioned herein below. (Parties are hereinafter referred as per their original nomenclature i.e. the present Appellant as Complainant and present Respondents, Regional Transport Officer, Nagpur, Transport Commissioner, Mumbai and United Telecom Ltd., Nagpur as Opposite Parties for the better appreciation.)

3. In a nutshell it is a case of the Complainant that the Complainant /appellant made an application for the purpose of grant of duplicate driving license under Rule 11 (1) of the Maharashtra Motor Vehicle Rules, 1989 by making an application to the Respondent no 1 on 22/08/2011 by making the payment of requisite fees. The Respondent no. 1 was required to give duplicate driving license to appellant within 4 days of the application being the Regional Transport Officer. But it is found and observed that respondent did not give driving license in smart card type format till 30 days and therefore the appellant who is the original complainant filed the consumer complaint before the District Consumer Redressal Forum Nagpur on 20/10/2011 for "deficiency in service" and "unfair practice" on the part of respondents.

4. Notices were served to Opponents. Opposite Party No.1 and 2 collectively filed Written Version/ Reply and by general denials and defences restricted the claim of the Complainant and thereby denied all the allegations made by Complainant against the Opposite Party No. 1 and 2. The O.P. No.1 and 2 submitted in its preliminary objection that the Learned District Commission has no jurisdiction to entertain the complaint as Complainants are not the consumers as per the provision of consumer protection act, 1986, as well as there is no relation of consumer and service provider.

5. The Opponents No.1 and 2 specifically submitted that it is the administrative work of State to issue license to the persons who drives vehicle and for the same they accept license fee. The administrative work of Opponent No.1 and 2 is as per the provisions of Motor Vehicle Act and if there is any grievance against the officials of Opponent No.1 and 2 then there is tribunal or authorities particularly prescribed in the Motor Vehicle Act and therefore, the said District Commission has no jurisdiction to entertain the matter. OP. No.3 had not filed reply.

6. The learned District Commission, thereafter recorded the evidence led by the Complainant as well as Opposite parties No. 1 and 2. The learned Commission, also went through the documents filed by both the parties as well as written notes of arguments. After appreciating the oral and documentary evidence as well as the authorities cited the leamed Commission has dismissed the Complaint. Apart from that complaint there are other four complaints were pending before the Learned Di

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