Directions Issued To Centre For Conducting Legislative Impact Study Of Consumer Protection Act, 2019

WHAT WAS THE MATTER

• A bench of the Supreme Court, headed by Justice Sanjay Krishna Kaul, was hearing a suo-motu matter on the issue of vacancies in the National and State Consumer Dispute Resolution Centers.
• The bench looked into the matter and observed that the 2019 Act expanded the jurisdiction of the consumer courts. The amount for which cases could be filed was increased drastically in the new Act.
• The Court observed that such expansion was not complemented with the adequate filling of positions in the consumer forums as the changes led to various litigations earlier handled by Civil Courts to be taken up by the forums.
• The Court also asked about the Legislative Impact Study, which is a study about the impacts a proposed legislation can have and whether it would be useful to bring the legislation.
• But on the basis of the dodging of questions undertaken by the Additional Solicitor General (ASG), the Court found that the study was never undertaken.

OTHER DEVELOPMENTS

• The ASG stated that a letter was sent to the State Governments seeking their suggestions on the expanded pecuniary jurisdiction. But even this practice was undertaken after the Act was enforced.
• The Court reprimanded the Central Government and the State Governments which filed last-minute affidavits, and were also delaying notifying of the rules regarding advertising and filing of vacancies.
• WHAT THE COURT HELD
• The Court ordered the Central Government to present the Legislative Impact Study within 4 weeks of the order.
• The Central and State Governments were ordered to fill the vacancies in NCDRC and SCDRC respectively within 8 weeks.
• The State Governments which had not notified the rules laid down by the Court in relation to the Consumer Protection Act, 2019 were ordered to do so within 2 weeks. If not done, the model rules framed by the Central Government would become applicable upon them.
• Such state governments which had not set up selection committees for filing the vacancies were ordered to setup the committees within 4 weeks of the order.

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