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2026 Supreme(Online)(SCDRC) 2908

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Kalyani Kapse, Presiding Member, Shaila D. Wandhare, Member
Mitthulal Kewal Nayak – Appellant
Versus
Regional Transport Commissioner – Respondent
FIRST APPEAL NO. SC/CB2/27/A/447/2014



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

Statutory authorities are not exempt from the Consumer Protection Act when they perform services for a consideration. Functions that are not strictly sovereign, such as issuing smart card licenses for a fee, establish a consumer-service provider relationship, making authorities liable for deficiency in service.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(d), 2(o), 12 and 15 - Deficiency in service - Consumer complaint maintainability - Statutory authorities performing non-sovereign functions for consideration - Whether government bodies are amenable to the Act. Even if an authority is discharging statutory functions, the test is whether the nature of the duty performed is a service or facility for consideration. Statutory authorities/government bodies are considered service providers when they engage in commercial adventures or provide services for a consideration, and such functions are distinct from sovereign duties. (Paras 20, 36, 46)

(B) Regulatory Compliance - Delivery standards - Breach of service charter - Failure to provide services within the stipulated time mentioned in the citizens' charter constitutes a deficiency in service. (Para 15, 23)

Facts of the case:
The appellant filed an application for issuance of a duplicate driving license by paying the requisite fee. The authority failed to issue the license within the prescribed time limit of seven days. The appellant filed a complaint before the district forum alleging deficiency in service and unfair trade practice. The forum initially dismissed the complaint on the grounds that the authority was performing government functions and the complainant was not a consumer. The appellant appealed this decision.

Findings of Court:
The state commission found that the charging of fees for the smart card driving license establishes a consumer-service provider relationship. The commission held that receiving money in exchange for specific services like delivering smart cards falls under the definition of service under the Act and is not a sovereign function that grants immunity from consumer complaints.

Issues: The main issues were whether a statutory authority providing driving licenses for a fee qualifies as a service provider under the Act, and whether such functions constitute sovereign acts exempt from the jurisdiction of consumer forums.

Ratio Decidendi: Statutory bodies performing welfare activities or commercial adventures for a fee are amenable to consumer jurisdiction. If a department has units providing services for consideration, such functions are severable from sovereign duties, and failure to perform such services with efficiency constitutes deficiency in service.

Result: Appeal partly allowed; lower forum's order set aside; compensation awarded for deficiency in service and harassment.

Table of Content
1. factual basis for alleging deficiency in service regarding rto card issuance. (Para 1 , 2 , 3 , 8)
2. district forum's initial rejection based on lack of consumer-service provider relationship. (Para 4 , 5 , 6 , 7)
3. charging fees for smart card documents constitutes a service. (Para 12 , 13 , 14 , 15 , 16)
4. statutory bodies are amenable to the consumer protection act. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23)
5. distinction between sovereign functions and commercial service-oriented functions. (Para 24 , 25 , 31 , 32 , 33 , 34 , 45)
6. precedents establishing jurisdiction over statutory bodies acting for consideration. (Para 26 , 27 , 28 , 29 , 30 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44)
7. liability for deficiency in service and unfair trade practice in smart card delivery. (Para 46 , 47 , 48 , 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 Mr. Mitthulal S/o. Kewal Nayak, Nagpur against the Order and Judgement dtd. 25/07/2014 in Complaint No. CC/649/2011 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 o

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