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Supreme Court issues notice on new provisions in Consumer Protection Act

The Bench comprising Justices Mohan M. Shantanagoudar and Vineet Saran was hearing a petition filed by the legal heirs of the deceased person who was burnt in 2018

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The Supreme Court on Monday issued notice on a plea challenging the newly-added provisions to Sections 34(1), 47(1) and 58(1)(a)(i) of the Consumer Protection Act, 2019.

The Bench comprising Justices Mohan M. Shantanagoudar and Vineet Saran was hearing a petition filed by the legal heirs of the deceased person who was burnt in 2018 due to a manufacturing defect in the design of wiring in a car, a Ford Endeavour Titanium.

The petitioners submitted that under the new provisions of the Act, new criteria for computing compensation claim has shifted from “Amount Claimed” to “consideration paid at the time of purchasing service or product” which is violative of Article 14 of the Constitution of India.

The petitioner submitted that the provisions of the Consumer Protection Act, 2019 which came into force by notification released on July 20, 2020, an anomaly has arisen regarding “Pecuniary Jurisdiction” and “Hierarchy of Judicial System.” For example, a person who is claiming compensation of Rs 10 crore is required to file a complaint before the National Consumer Dispute Redressal Commission and the person claiming compensation of about Rs 51 crore has to file a complaint before the District Consumer Forum.

Also Read: Supreme Court ends limitation extension, year from March 15, 2020 to March 14, 2021 excluded

The petitioners have revealed of 14 similar incidents where the fire began in a Ford car due to internal wiring failure. One of the petitioners who is the wife of the deceased person claimed Rs 51 crore as compensation while quoting the case Balram Prasad v. Kunal Shah and Ors. but, since the car’s price paid was Rs 30 lakh, the petitioner was forced to file a case in the consumer forum at Vadodara according to the new provisions of the Consumer Protection Act, 2019.

The Petition has been filed through Advocate Harish Raichura.

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