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Jurisdiction of Consumer Forum

(Querist) 01 April 2008 This query is : Resolved 
My son was trading in shares with a share trading terminal at my place of a subsidiary of a renowned private sector bank. The trading agreement states as subject to mumbai jurisdiction. All transactions have taken place at my place through the trading platform of company's direct business associate at my place. My son incurred loss as the system did not function when markets crashed on 21-01-08. Please let me know if territorial jurisdiction will be district forum under consumer protection act at my place [its a district place with this forum] or mumbai which is 1000 kms from my place.
Guest (Expert) 02 April 2008
As per the Act, the complaint is to be filed at the 'District Consumer Forum' under whose jurisdiction the opposite parties or one of the opposite parties resides or carries business. Unlike CPC, the complainant's residence is not taken into consideration for jurisdiction by Consumer Forums.
J. P. Shah (Querist) 02 April 2008
Thanks a lot for your kind reply, Sir.

In my son's case cause of action has arisen at my place. All transactions of share trading were put through here and trading account is maintained with Direct Business Associate of the company. DBA is authorised person to accept and put through transactions with the company. Pl take this into account and advise. Tks
Deepak Rikhari (Expert) 04 April 2008


A complaint shall be instituted within the local limits of whose jurisdiction, -


(a) The opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or 2[carries on business or has a branch office, or] personally works for gain; or

(b) Any of the opposite parties where there are more then one, at the time of the institution of the complaint, actually and voluntarily resides, or 2[carries on business or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or 2[carry on business or have a branch office], or personally works for gain, as the case may be, acquiesce in such institution; or

(c) The cause of action, wholly or in part arises.

So the cause of action is also considered by the consumer court unde section 11(2)(c)
J. P. Shah (Querist) 04 April 2008
Thanks Deepakji for your kind guidance.
Jithendra.H.J (Expert) 09 April 2008
deepad rikhari and R., Sivasubramanian had given correct answer, but you have to check the pecuniary jurisdiction,
1)the District Forums and these are established in each District and have jurisdiction to entertain complaints where the value of goods or services and the compensation if any, claimed does not exceed Rs.20,00,000 (TWENTY LAKHS), and a complaint can be filed in a District Forum within the local limits of which
a) the opposite party resides or

b) carries on his business or works for gain or

c) where the cause of action arises.

2) in state commission:
these have jurisdiction to entertain complaints where the value of goods or services and the compensation if any, claimed exceeds Rs.20,00,000 (TWENTY LAKHS) but does not exceed Rs.1, 00,00,000 (ONE CRORE).
3)The National Consumer Disputes Redressal Commission has jurisdiction to entertain complaints where the value of the goods or services and compensation if any claimed exceeds Rs.1, 00,00,000 (ONE CRORE).


SANJAY DIXIT (Expert) 15 June 2008
Claim Limit:--
(1) District Forums - Upto Rs.20,00,000
(2) State Commission - Rs.20,00,000 to Rs.1,00,00,000
3)The National Consumer Disputes Redressal Commission - More than Rs.1,00,00,000




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