Supreme Court calls for systemic overhaul of Consumer Forums [Read judgment]

The lackadaisical and bureaucratic situation prevailing in the State Consumer Forums today drew the ire of the Supreme Court, with a judgment calling for a “systemic overhaul of the entire infrastructure” of these forums..The Bench of Chief Justice TS Thakur, and Justices DY Chandrachud and L Nageswara Rao made some scathing observations in their judgment, noting that district consumer forums in many states have become dysfunctional, and have been transformed into a hub for schoolyard politics, with politicians and bureaucrats filling up posts meant for non-judicial members.Earlier this year, another bench of Chief Justice TS Thakur, Justices AK Sikri and R Banumathi had appointed a panel comprising former Supreme Court judge Arijit Pasayat, former Delhi High court judge, Justice Rekha Sharma and the Union secretary for consumer affairs or his nominee to look into the functioning of consumer protection courts and suggest remedial measures..The Committee revealed shocking data in its report. The Bench took note of the same, going so far as to observe,.“The facts which have emerged from the interim report submitted by the Committee on 17 October 2016 constitute a sobering reflection of how far removed reality lies from the goals and objectives which Parliament had in view while enacting the Consumer Protection Act, 1986. .The Committee has observed that the fora constituted under the enactment do not function as effectively as expected due to a poor organizational set up, grossly inadequate infrastructure, absence of adequate and trained manpower and lack of qualified members in the adjudicating bodies. Benches of the state and district fora sit, in many cases for barely two or three hours every day and remain non-functional for months due to a lack of coram. .Orders are not enforced like other orders passed by the civil courts. The state governments have failed to respond to the suggestions of the Committee for streamlining the state of affairs.”.The Bench also noted most of the consumer forums do not have the minimum facilities to function and that many members are political appointees, who have been abusing their powers. The Court also noted that a lack of attractive remuneration had also failed to bring talented and serious people to the consumer forums..“The interim report of the Committee provides an unfortunate reflection of the state of affairs in the consumer fora at the district, state and national level. That these bodies which are vested with important functions of a judicial nature continue to work despite the prevalence of such adverse conditions and in the face of the apathy of the governments both at the national and state level is a matter which requires immediate intervention by this Court. A systemic overhaul of the entire infrastructure is necessary if the Consumer Protection Act, 1986 is not to become a dead letter.”.In view of the sorry state of affairs prevailing in the State Consumer Forums, the Court opined that the findings of the Committee merited further acknowledgement..It, therefore, proceeded to direct the framing of model rules for adoption by the state governments within four months, to be submitted to this Court for its approval. The rules are to provide for the payment of salary, allowances and for the conditions of service of the members of the consumer fora commensurate with the nature of adjudicatory duties and the need to attract suitable talent to the adjudicating bodies..The Bench also directed the State governments concerned to implement the recommendations of the three-member Arijit Pasayat Committee within a period of three months..The matter is now listed in March..Read the judgment below.