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2026 Supreme(Online)(SCDRC) 3139

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 functions for consideration fall under the definition of service providers. When such services are non-sovereign or severable, consumer forums maintain jurisdiction to adjudicate claims of deficiency in service or unfair trade practice against them.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(d), 2(o) and 15 - Deficiency in service - Unfair trade practice - Whether statutory bodies performing sovereign functions are amenable to Consumer Forum - Held, statutory authority providing service for consideration, even if performing statutory duties, is subject to jurisdiction of consumer forums if such functions are non-sovereign or severable services. (Paras 20, 21, 36, 40, 48)

(B) Service - Definition - Scope - The test to determine if an authority is a service provider is not whether it is a statutory body, but whether the nature of the duty and function performed is a service or facility for consideration. (Paras 20, 30, 46)

(C) Appellate Jurisdiction - The court sitting in appeal must determine if the impugned order suffers from illegality or infirmity by failing to consider the nature of service provided for a fee, notwithstanding the statutory status of the provider. (Paras 17, 19, 47)

Facts of the case:
The appellant applied for a duplicate driving license by paying the prescribed fee. Despite the statutory obligation and the time-bound policy specified in the citizens' charter, the respondent failed to deliver the smart card license within the promised period. The forum originally dismissed the complaint, holding that the respondent as a statutory authority was not rendering service for consideration and therefore the complaint was not maintainable.

Findings of Court:
The court held that the respondents were service providers as they charged a fee for issuing smart card licenses. The service was not an core sovereign function and was severable. The delay in performance despite receiving consideration amounted to deficiency in service and unfair trade practice.

Issues: Whether the service provided by the transport department for the issuance of a driving license constitutes 'service' under the Act when a fee is charged, and whether the consumer fora have jurisdiction over such statutory bodies.

Ratio Decidendi: The court ruled that the definition of service under the Act is broad enough to cover statutory bodies when they perform functions for consideration, provided such functions are not core sovereign duties. Because the issuance of a smart card license involves a fee-based service, the failure to meet the specified delivery timeline constitutes a deficiency in service for which the authority is liable.

Result: Appeal partly allowed; impugned order set aside; compensation awarded for mental harassment and deficiency in service.

Table of Content
1. jurisdiction of consumer forums over public service providers. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. definition of deficiency in service regarding smart card issuance. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. applicability of consumer protection act to statutory bodies. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34)
4. distinction between sovereign functions and commercial services. (Para 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48)
5. awarding compensation for deficiency in service. (Para 49 , 50)

ORDER

(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 m

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