“Jurisdiction” can be simply defined as power of the court to “entertain the suit” i.e. to admit for the purpose of consideration. Independent of the decision being taken rightly or wrongly, it is something which gives court power to take cognizance of the issue and decide the case. Consumer act is specialized piece of legislation, and its jurisdiction has been clearly defined. What happens if a complaint with prayer of interim order has been filed with relevant forum (eg. District Commission), but the opposite party decides to take defence of Jurisdiction. That is once an objection to the jurisdiction of the Commission to entertain the suit is raised at the hearing of an application for interim relief, is it imperative for and a mandatory duty of the Commission to decide that issue as a preliminary issue.
Beyond the power of Commission?:- It is to be noted that the Consumer forums and commissions as established are creatures of the statutes and derive their power from express provisions of the statute. Thus they must exercise their power expressly in consonance with the statute. Therefore prima facie any issue of order whether interim or final without having jurisdiction, would be beyond the provisions of the statutes, and the commission or forum would have acted beyond its scope.
What does statute say about it? It is to be noted that the S 36 titled “Proceeding before District Commission” and S 38 titled “Procedure on admission of Complaint” of The Consumer Protection Act 2019 are the relevant provision for the purposes of present analysis. S 36 (2) talks about how district commission must admit the complaint presented under S 35 of the Act, whereas S. 38 talks about how the complaint must be dealt with once the Complaint has been admitted, and also grants power for passing interim order. Since the Question of jurisdiction goes to heart of admitting the complaint itself, the complaint becomes inadmissible. And if no admission is made the commission does not have any power to pass interim order as well.
Jurisdiction as preliminary issue:- It is to be noted that the courts have recognized the jurisdiction as preliminary issue and The Hon’ble Supreme Court in Kiran Chit Fund v A Bal Reddy [(2008) 7 SCC 166] have identified the necessity to determine jurisdiction as preliminary issue specifically in respect of Consumer Protection Act.
In light of the abovementioned analysis and in light of present case laws, the author would like to opine that once an objection to the jurisdiction of the Commission to entertain the suit is raised at the hearing of an application for interim relief, it becomes imperative for and a mandatory duty of the Commission to decide that issue as a preliminary issue.
Another question that might arise herein would be what to do it such an order beyond the jurisdiction of the Commission has been passed against you? Should you comply with the order or whether you can ignore it? It is to be noted that despite the orders being beyond the jurisdiction of the Commissions, such interim orders already issued do not become non est, and non compliance of the order/decision regarding the jurisdiction alone might render you liable for disobedience and breach of the order. IF the party is unsatisfied with the orderand want to challenge the order itself, it might be in best interest of the party to apply for review of the order under S. 40 of the Act, or Appeal from the order under S 41 of the Act. (In case such order has been passed by the District Commission.)
Views expressed are personal, please take independent Legal advice from a professionals.
