SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(SCDRC) 2910

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Kalyani Kapse, Presiding Member, Shaila D. Wandhare, Member
Shreyas Sanjay Khemuka – Appellant
Versus
Regional Transport Commissioner – Respondent
FIRST APPEAL NO. SC/CB2/27/A/449/2014



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

Statutory bodies discharging duties for a consideration, whether directly or through outsourced arrangements, function as service providers. Such services are not sovereign functions; therefore, consumer forums have jurisdiction to adjudicate upon complaints regarding deficiency in service and unfair trade practices by these authorities.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(d), 2(g), 2(o), 12 and 15 - Deficiency in service - Unfair trade practice - Maintainability of complaint against statutory bodies - Statutory function vs Service for consideration - Appellant applied for a duplicate license, paid requisite fees, but experienced undue delay in delivery beyond stipulated time-limits - Held, statutory bodies performing non-sovereign functions for consideration, or where service is severable from sovereign duties, are amenable to consumer jurisdiction - (Paras 3, 13, 14, 20, 21, 37, 40)

(B) Jurisdiction of Consumer Forum - Extent of authority - Not all statutory functions are sovereign - Activities undertaken for welfare or through economic adventures involving consideration for services constitute 'service' under the Act - Evaluation of legality of exactions and adherence to standards by statutory bodies falls within forum's ambit - (Paras 39, 42, 43)

Facts of the case:
An applicant sought a duplicate driving license and paid the prescribed fee. The authority failed to deliver the smart card license within the timeline specified in the citizen's charter. The initial complaint before the District Forum was dismissed on the grounds that the authority performs statutory functions and the complainant was not a 'consumer', claiming no jurisdiction under the Act.

Findings of Court:
The government body acted as a service provider by charging consideration for a specific service. The delay in delivery constitutes 'deficiency in service' and the forced sale of smart cards constitutes an 'unfair trade practice'. Sovereign functions like judicial decision-making or taxation are exempt, but commercial activities or services provided for fees by statutory authorities are within the consumer forum's jurisdiction.

Issues: Whether the statutory authority constitutes a 'service provider' under the Act and whether the consumer forum has jurisdiction to entertain a complaint regarding delay in service against such an authority.

Ratio Decidendi: The test for jurisdiction is not whether the entity is a statutory body, but whether the nature of the duty performed is a 'service' provided for consideration. When a government or statutory body charges fees for services, it enters into a consumer-service provider relationship, making it accountable for deficiency in service or unfair trade practices.

Result: Appeal partly allowed; compensation and litigation costs awarded against the concerned officials.

Table of Content
1. factual background of appeal and jurisdictional dispute (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. allegations of service deficiency and unfair trade practice (Para 12 , 13 , 14 , 15 , 16)
3. applicability of consumer protection act to statutory bodies (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
4. determination of service provider liability and final order (Para 47 , 48 , 49 , 50 , 51)

ORDER

Per Kalyani Kapse…..

(Delivered on 30/03/2026)

PER MS. S.D. WANDHARE , HON’BLE MEMBER.

1. The present appeal is preferred by the Appellant/Original Complainant namely Mr. Shreyas S/o. Sanajy Khemuka, Nagpur against the Order and Judgement dtd. 25/07/2014 in Complaint No. CC/648/2011 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 24/08/2011 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 District Commission having same subject matter therefore, the Learned District Commission d

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top