TaxTMI 
TaxTMI 
2025 (5) TMI 1901
X X X X Extracts X X X X
X X X X Extracts X X X X
..... R Venkataramani, A G for India Mr. Raman Yadav, Adv. Mr. Chitvan Singhal, Adv. Ms. Aishwarya Bhati, Adv. Mr. Abhishek Kumar Pandey, Adv. Mr. Shraddha Deshmukh, Adv. Mr. Ameyavikrama Thanvi, Adv. Mr. Kartikay Aggarwal, Adv. Mr. Shreekant Neelappa Terdal, AOR Dr. Tushar Mandlekar, Adv. Ms. Anju Thomas, AOR Ms. Mantika Haryani, Adv. Ms. Muskan Surana, Adv. Ms. Panistha Bhatt, Adv. Ms. Tejas Fadnavis, Adv. Mr. Tushar Mehta, Solicitor General Mr. Aaditya Aniruddha Pande, AOR Mr. Sourav Singh, Adv. Mr. Chitranshul A. Sinha, AOR Mr. Nishant Ramakantrao Katneshwarkar, AOR Mr. B. Veeraswamy Raju, Adv. Ms. Shilpa Sharma, Adv. Ms. Aswathi M.k., AOR Mr. Sudhir Naagar, AOR Mr. Manohar Naagar, Adv. Mr. Arun Kumar Nagar, Adv. Mr. Rahul Kasana, Adv. 1502 Mr. Amit Anand Tiwari, Sr. Advocate, A.A.G. Ms. Purnima Krishna, AOR Mr. M.F.Philip, Adv. Mr. Karamveer Singh Yadav, Adv. Mr. Togin M. Babichen, Adv For the Respondent : Mr. Siddharth S. Chapalgaonkar, Adv. Ms. Sneha Botwe, Adv. Mr. Pai Amit, AOR Ms. Sakshi Kakkar, AOR Mr. Shakti Singh, Adv. Dr. Tushar Mandlekar, Adv. Ms. Anju Thomas, AOR Ms. Mantika Haryani, Adv. Ms. Muskan Surana, Adv. Ms. Panistha Bhatt, Adv. Ms. Tejas Fadnavis, Adv. Ms. As....
X X X X Extracts X X X X
X X X X Extracts X X X X
....very act or omission of an individual might attract the definition, given the impact it may have on others. Perhaps, its essence is best expressed in the words of Mahatma Gandhi, the Father of the Nation. "A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outsider on our business. He is a part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so." (emphasis supplied) 3. He elevated a consumer above every other entity, transforming the concept of consumerism through the principles of truth and dharma. He galvanised people from all walks of life to participate in the freedom struggle, by incorporating the spirit of consumerism in the pivotal Indian Independence Movement, through methods such as non- cooperation and civil disobedience. One classic instance where politics, economics and social order were consciously integrated, was the Dandi March of 1930, whereby civil disobedience was extended through the Salt Satyagraha opposing the taxation of salt. It can be rightfully said that de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsumerism is both an idea and a contagious spirit and national boundaries have never proved much of an obstacle to either of these. Thus, consumerism has become an international social force." (emphasis supplied) 7. Consumerism, thus, constitutes the very spirit of the Constitution of India, 1950 (hereinafter referred to as "the Constitution"). It does not end with recognizing and protecting the rights of a consumer vis-à-vis a trader or a service provider, as the case may be, but travels far beyond. The rights of a consumer are not merely constitutional or statutory guarantees, but are in fact, natural, and therefore, inalienable. The fact that the society, economy, polity and the environment, are inseparable from each other, is something that was envisioned even by the framers of the Constitution. Though not explicitly in the context of consumerism, the said vision is reflected in the much-celebrated statement of Dr. B.R. Ambedkar, in his closing speech before the Constituent Assembly of India, on 25.11.1949. Constituent Assembly of India, Friday, the 25th November, 1949 The Honourable Dr. B. R. Ambedkar : "The third thing we must do is not to be content with mere p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Constitution "38. State to secure a social order for the promotion of welfare of the people.- (1) The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life. (2) The State shall, in particular, strive to minimise the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations." (emphasis supplied) Article 39 of the Constitution "39. Certain principles of policy to be followed by the State.-The State shall, in particular, direct its policy towards securing- xxx xxx xxx (b) that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; (c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; xxx xxx xxx (e) that the health and strength of workers, men and women, and the tender....
X X X X Extracts X X X X
X X X X Extracts X X X X
....zation of our constitutional rights, culture and ethos. It was felt that a dedicated consumer legislation was needed for citizens, to attain exposure to participative democracy, day-to-day economics, ongoing politics and environmental protection, endeavouring towards socio-economic, political and environmental justice. Perhaps, that might be the reason as to why the 1986 Act, being the first consumer protection legislation in India, does not even draw its origins from any specific provision of the Constitution, as all the salient features of the Constitution are put in a basket and offered to the citizen, for whose benefit it has been enacted. 10. It is needless to state that, while dealing with consumer disputes, the Consumer fora created under the 1986 Act and, thereafter, retained under the 2019 Act, must be mindful of the aforesaid constitutional basis, as a mere dictionary meaning can never do complete justice to the word 'consumer'. Spring Meadows Hospital v. Harjol Ahluwalia, (1998) 4 SCC 39 "8. Before we examine the aforesaid questions it would be appropriate to notice the scenario in which Parliament enacted the Consumer Protection Act (hereinafter referred to as "the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....umers'. During the last few years preceding the enactment there was in this country a marked awareness among the consumers of goods that they were not getting their money's worth and were being exploited by both traders and manufacturers of consumer goods. The need for consumer redressal fora was, therefore, increasingly felt. Understandably, therefore, legislation was introduced and enacted with considerable enthusiasm and fanfare as a path-breaking benevolent legislation intended to protect the consumer from exploitation by unscrupulous manufacturers and traders of consumer goods. A three-tier fora comprising the District Forum, the State Commission and the National Commission came to be envisaged under the Act for redressal of grievances of consumers." xxx xxx xxx 42. We may in this connection also notice that in Laxmi Engg. Works v. P.S.G. Industrial Institute [(1995) 3 SCC 583] this Court held : (SCC p. 591, para 10) "10. A review of the provisions of the Act discloses that the quasi- judicial bodies/authorities/agencies created by the Act known as District Forums, State Commissions and the National Commission are not courts though invested with some of the powers of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tory of socio-economic legislation and is directed towards achieving public benefit." (emphasis supplied) Nivedita Sharma v. Cellular Operators Assn. of India, (2011) 14 SCC 337 "18. The 1986 Act was enacted for the better protection of the interests of consumers by making provision for the establishment of consumer councils and other authorities for the settlement of consumer disputes. The object and purpose of enacting the 1986 Act is to provide for simple, inexpensive and speedy remedy to the consumers who have grievance against defective goods and deficient services. This benevolent piece of legislation intended to protect a large body of consumers from exploitation." (emphasis supplied) CONSUMERISM VIS-À-VIS PUBLIC INTEREST 11. Though a consumer seeking to redress his grievance may do so for himself, the benefit of the same often enures to the public, which transacts with various entities, including State instrumentalities. In this way, the exercise of the power vested in a single consumer, to hold any entity accountable, transforms him into a flag bearer of public justice. This was seen way back in the year 1932, when Mrs. Donoghue, who fell sick after drinkin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....able, and equality of opportunities are the order of the day, can a society be said to have truly achieved social justice and hence, democracy. 15. To bring about this social revolution, 'consumerism' must be accepted as a social force, as it substantially informs the trajectory of one's life. The manner in which a growing child's basic needs of nutrition and education are fulfilled, plays a huge role in the abilities he acquires and the opportunities he receives and may ultimately avail as an adult. A child consuming sub-standard food, growing in abject poverty, will be materially different from his counterpart, who may have exposure to the best of what the world has to offer. Similarly, a child acquiring knowledge through sound and stable education, equipped with necessary learning tools, ranging from something as basic as a pen and paper, to something as advanced as smart classrooms, might be able to avail more opportunities than one growing up without the same. Plainly speaking, if there is no equality of consumption, there can be no equality of life. 16. If commodities are enjoyed solely by a particular section of the society, becoming a mirage to the unfortunate majority, t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the Greek philosopher and polymath Aristotle in the 4th century BCE, has attained tremendous significance in the present day and age. Across the globe, the seeds of political consumerism sprouted during the struggles for a liberal democracy, becoming their very backbone, particularly in light of the fact that consumption has always been an intrinsic part of people's lives. These saplings have today grown into undercurrents in everyday transactions. 22. The choice to consume a particular good or service, or not, reflects our political considerations. It might also be a symbol of class or power. In the words of the acclaimed Polish Nobel Laureate, Olga Nawoja Tokarczuk, "In today's world everything is political. We are a statement - our clothes, haircut, the way we act". 23. A nation's political stability, and its international relations, are influenced by its fiscal, monetary and sector-specific policies on education, health and the environment, amongst others. These in turn affect and are affected by consumerism. From an international perspective, trade agreements, import and export policies, military alliances, and international cooperation hinge on the global underst....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dies also show that the population size in India has surpassed all other nations, a factor that is certainly contributing to the expansion of the consumer base, thereby leading to an increase in consumption expenditure. This is corroborated by the statistics released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) vide its Press Note in February 2025, which indicates that Private Final Consumption Expenditure (PFCE) at current prices stood at Rs.181.30 lakh crore for the year 2023-24, as against Rs.165.28 lakh crore in 2022-23, and that in relation to the Gross Domestic Product (GDP), the PFCE to GDP ratio at current prices during 2022-23 and 2023-24 were 61.5% and 60.2% respectively. 28. With rising household income, coupled with development in all spheres, the demand and supply of goods and services, as well as expenditure, are undergoing drastic changes. The aspirational youth, who form a majority of the population and represent the future of our country, crave qualitative commodities at all times. In all, the constant evolution and expansion of the consumer basket will remain a key indicator of the nation's economic progress....
X X X X Extracts X X X X
X X X X Extracts X X X X
....resources and reduce reliance on finite resources. On the ancillary front, it can stimulate innovation and create new jobs in the renewable energy sector and sustainable industries. 33. Thus, green consumerism would lead the country closer towards achieving its milestones under the United Nations Sustainable Development Goals, with better implementation of the polluter pays principle, the precautionary principle, the intergenerational equity principle and the theory of trusteeship. In fact, the urgent need to make sustainable and healthy lifestyle choices available, accessible, and affordable for all consumers - while ensuring that these transitions uphold people's basic rights and needs, has been recognised in the theme for this year's World Consumer Rights Day, 'A Just Transition to Sustainable Lifestyles.' NEED FOR A CHANGE 34. The importance of consumerism has been sufficiently dealt with by us. The primary question for consideration now is as to whether the grievance redressal mechanism provided to a consumer, is adequate or not. As consumer justice includes social, economic, political, and environmental justice, the time has now come to test the apparatus available to deal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve to address the issues at hand. For doing so, certain factual narrations would be required. 41. Though we are concerned with three different sets of facts in the present Civil Appeals, two sets pertaining to the State of Maharashtra and one pertaining to the State of Telangana, we are dealing with all of them together, as the issues involved are overlapping. 42. The lacunae prevalent in the implementation of the 1986 Act, was substantially addressed for the first time by this Court in State of Uttar Pradesh and Others v. All Uttar Pradesh Consumer Protection Bar Association (2017) 1 SCC 444 (hereinafter referred to as "UPCPBA"), wherein directions had been issued to the Union of India, to frame Model Rules under the aforementioned statute. State of U.P. v. All U.P. Consumer Protection Bar Assn., (2017) 1 SCC 444 "28. Hence in terms of the above discussion we issue the following directions: 28.1. The Union Government shall for the purpose of ensuring uniformity in the exercise of the rule-making power under Section 10(3) and Section 16(2) of the Consumer Protection Act, 1986 frame model rules for adoption by the State Governments. The model rules shall be framed within four....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ules, 2019 (hereinafter referred to as "the 2019 Rules") were notified by the State of Maharashtra, invoking its power to make rules under Section 10(3), Section 13(1)(c), Section 14(3), Section 16(2) and Section 30(2) of the 1986 Act. 44. Thereafter, the 1986 Act was substituted by the 2019 Act, with effect from 09.08.2019. While dealing with the Finance Act, 2017, this Court, in Rojer Mathew v. South Indian Bank Limited (2020) 6 SCC 1 (hereinafter referred to as "Rojer Mathew"), was pleased to hold that the composition of the concerned Selection Committee must have maximum participation of the judiciary and that it would only be appropriate to have a minimum tenure of 5 years for the Presiding Officers and Members of the Tribunal and the Appellate Tribunal. 45. Thereafter, the Union of India came out with a fresh set of Rules, being the Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2020 (hereinafter referred to as "the 2020 Rules") in exercise of the powers conferred under Sections 101(2)(n) and 101(2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ppointment of President and members of the State Commission. - (1) A person shall not be qualified for appointment as President, unless he is, or has been, a Judge of the High Court; (2) A person shall not be qualified for appointment as a member unless he is of not less than forty years of age and possesses-- (a) an experience of at least ten years as presiding officer of a district court or of any tribunal at equivalent level or combined service as such in the district court and tribunal: Provided that not more than fifty percent of such members shall be appointed; or (b) a bachelor's degree from a recognised university and is a person of ability, integrity and standing, and has special knowledge and professional experience of not less than twenty years in consumer affairs, law, public affairs, administration, economics, commerce, industry, finance, management, engineering, technology, public health or medicine: (3) At least one member or the President of the State Commission shall be a woman." (emphasis supplied) Rule 4 of the 2020 Rules "4. Qualifications for appointment of President and member of District Commission. - (1) A person shall not be qualified for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cannot be sustained in the eye of law. This was because the 1986 Act and the 2019 Act are pari materia as regards Consumer fora, and the 2019 Rules framed under the 1986 Act, provided for the conduct of written examinations qua appointment to the Consumer fora. Incidentally, the power conferred under Article 142 of the Constitution was exercised, issuing directions to conduct a written examination followed by viva voce for the posts of Presidents and Members of the State and District Commissions. Suggestions had been given on the manner in which the written examination, followed by viva voce, was to be conducted. The Secretary Ministry of Consumer Affairs v. Dr. Mahindra Bhaskar Limaye & Ors., 2023 SCC OnLine SC 231 "44. Similarly providing 20 years' experience under Rule 3(2)(b) also rightly held to be arbitrary and violative of Article 14 of the Constitution. It is required to be noted that under Section 3(2)(b), a presiding officer of a Court having experience of 10 years is eligible for becoming President of the State Commission. Even under Section 3(1) a judge of the High Court, present or former, shall be qualified for appointment of the President. As per Article 233 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....District Commission instead of 20 years and 15 years respectively, provided in Rule 3(2)(b) and Rule 4(2)(c) which has been struck down to the extent providing 20 years and 15 years of experience, respectively. Till the suitable amendments are made in Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of President and Members of State Commission and District Commission) Rules, 2020 as above, in exercise of powers under Article 142 of the Constitution of India and to do complete justice, we direct that in future and hereinafter, a person having bachelor's degree from a recognized University and who is a person of ability, integrity and standing, and having special knowledge and professional experience of not less than 10 years in consumer affairs, law, public affairs, administration, economics, commerce, industry, finance, management, engineering, technology, public health or medicine, shall be treated as qualified for appointment of President and Members of the State Commission. Similarly, a person of a person of ability, integrity and standing, and having special knowledge and professiona....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reappointment had also been sought for. We may hasten to add that all the writ petitions had been filed by interested persons. Broadly, the writ petitioners comprised practicing advocates seeking appointment, and functioning Members and Presidents of the District Commissions in the State of Maharashtra, who sought reappointment to their respective posts. There were also intervenors, some of whom supported the case of the writ petitioners, while the others supported the stand taken by the State of Maharashtra. Rule 6 of the 2020 Rules "6. Procedure of appointment.-(1) The President and members of the State Commission and the District Commission shall be appointed by the State Government on the recommendation of a Selection Committee, consisting of the following persons, namely:- (a) Chief Justice of the High Court or any Judge of the High Court nominated by him- Chairperson; (b) Secretary in charge of Consumer Affairs of the State Government − Member; (c) Nominee of the Chief Secretary of the State-Member. (2) The Secretary in charge of Consumer Affairs of the State Government shall be the convener of the Selection Committee. (3) No appointment of the President, o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the State of Maharashtra, vide order dated 06.10.2023. 55. The High Court of Bombay, vide judgment dated 20.10.2023 (hereinafter referred to as "Impugned Order - I"), impugned before us in Civil Appeal Nos. 9982/2024, 9987/2024, 9983-9985/2024, 9989/2024, 9990/2024 and 9965-9967/2024, has partly allowed the writ petitions and struck down Rules 6(1) and 10(2) of the 2020 Rules, finding them to be legally unsustainable, and has also quashed the notifications, and the advertisement insofar as Paper II is concerned. 56. As regards Rule 6(1) of the 2020 Rules, the High Court of Bombay found that it suffered from the following infirmities: a. Since the Chairperson is the sole representative of the Judiciary in the three Member Selection Committee, there is a lack of judicial dominance, which is a direct contravention of the doctrine of separation of powers and also an encroachment on the judicial domain. b. There is excessive interference of the Executive in the appointment of Presidents and Members of the State and District Commissions. Accordingly, the said Rule was found to be in violation of the law laid down in Rojer Mathew (supra), MBA-III (supra) and MBA-IV (supra). The c....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... persons similarly placed as some of the appellants. 62. The High Court of Bombay, vide a separate judgment dated 20.10.2023 (hereinafter referred to as "Impugned Order - II"), impugned before us in Civil Appeal No. 9988/2024, has held that the directions issued by this Court in Limaye - I (supra) qua the conduct of the written examination, relate only to the appointment of Non-Judicial members of the State Commission and members of the District Commissions. It held so on the basis that this Court in Limaye - I (supra), was only concerned with the validity of Rules 3(2)(b) and 4(2)(c) of the 2020 Rules, which pertain to the posts of Non-Judicial Members of the State and Members of the District Commissions, and no challenge to the validity of Rule 3(2)(a) of the 2020 Rules, which deals with the post of a Judicial Member of the State Commission, had been made. Accordingly, the advertisement was also restricted to appointments of Non-Judicial members of the State Commission alone and the candidature of the writ petitioner therein was directed to be considered under Rule 3(2)(a) of the 2020 Rules. 63. The Division Bench of the High Court of Telangana, vide judgment dated 22.02.2024 (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion that it is virtually impossible for persons seeking appointment to the posts of President of the State Commission who must be a former Judge of the High Court, Judicial Members of the State Commission and Presidents of the District Commissions, having a judicial background, to undergo a written examination followed by a viva voce. Reliance has been placed on the Rules framed by the Government of Tamil Nadu under the 1986 Act, following the Model Rules framed by the Central Government, including Rule 5(7) of the Model Rules, which indicated the manner in which judicial persons could be considered for membership to the Consumer fora. Qua Impugned Order - I 67. Learned counsel appearing for the appellants in Civil Appeal Nos. 9982/2024, 9987/2024 and 9983-9985/2024, submitted that Impugned Order - I cannot be sustained in the eye of law on the following grounds: a) It had not been brought to the notice of the High Court of Bombay that the entire recruitment process had been completed, and that the appellants have been duly appointed by the State of Maharashtra vide order dated 05.10.2023. b) The High Court of Bombay had no opportunity to consider the amended Rules 3(2)(b), ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....id Rule 14 clearly specifies that the terms and conditions of service of the Presidents and Members of the State and District Commissions shall not be varied to their disadvantage during the tenure of their office. 69. Similar submissions have been made by some of the intervenors, with a few seeking reappointments for a second term and others for a third. As regards those who were seeking reappointment for the third term, we have already held, vide order dated 27.06.2024, that no one is entitled to continue for a third term on the basis of our interim order dated 10.11.2023. 70. Learned counsel appearing for the appellant Dr. Mahendra Bhaskar Limaye in Civil Appeal No. 9989/2024 seeking quashing of the advertisement qua Paper I, submitted that the syllabus for the written examination was in complete contradiction to and in violation of the directions issued in Limaye - I (supra). The High Court of Bombay failed to note that the rules of the game qua negative marking were changed by the State of Maharashtra, just 24 hours before the date of the written examination. The High Court of Bombay also failed to take cognizance of events subsequent to the judgment being reserved on 01.09.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent of the 2019 Act. Upon making these submissions, it has been fairly conceded on behalf of the Union of India that a fresh set of Rules would be enacted replacing the existing Rules, after taking note of the lacunae pointed out by the concerned stakeholders. We have also been informed that the Department of Consumer Affairs, vide Letter dated 26.11.2024, emphasised on the need to expedite the process of appointments and that under Rule 6(9) of the 2020 Rules, as amended in 2023, many States such as Rajasthan, Uttar Pradesh, West Bengal, and the Union Territory of the Andaman & Nicobar Islands had started advertising vacancies in the Commissions and conducting examinations. 72. The Union of India in IA No. 97449/2024 has proposed an amendment to the 2020 Rules, amended in 2023, as follows : 2020 Rules as amended in 2023 Proposed Amendment 4. Qualifications for appointment of President and member of District Commission.- (1) A person shall not be qualified for appointment as President, unless he is, or has been, or is qualified to be a District Judge. 4. Qualifications for appointment of President and member of District Commission.- (1) A person shall not be qualif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ditional charge, shall not be made without the concurrence of the Chief Justice of the High Court. (9B) The Selection Committee shall determine its procedure for shortlist of the applicants for the office of Member of the State Commission or of the District Commission, as the case may be, and make its recommendation keeping in view the requirements of the State Commission or the District Commission, and after taking into account the suitability, record of past performance, integrity and adjudicatory experience. 73. IA No. 180566/2024 and IA No. 27612/2025 in Civil Appeal Nos. 9965- 9967/2024, have been filed by an advocate and by persons who are currently serving as Presidents of District Commissions, respectively. They oppose the proposed amendment to Rule 4(1) of the 2020 Rules, as amended in 2023. It is their contention that the omission of the phrase "qualified to be a District Judge", from the qualification for appointment to the post of President of the District Commissions, violates principles of Administrative Law and is contrary to Article 233(2) of the Constitution. Qua Impugned Order - II 74. Learned counsel appearing for the State of Maharashtra in C....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... measure, clarifying that appointments would be made in consultation with and subject to the concurrence of the Chief Justice of the High Court. "1. In the judgment of this Court in The Secretary Ministry of Consumer Affairs vs Dr Mahindra Bhaskar Limaye (Civil Appeal No.831 of 2023), directions were issued on 3 March 2023, inter alia, in the exercise of the jurisdiction under Article 142 of the Constitution that for the appointment of the President and Members of the State Consumer Disputes Redressal Commission (SCDRC) and the District Consumer Redressal Commissions, the basis for selection would be а written test consisting of two papers, each of 100 marks followed by а viva voce. The judgment sets out the total marks to be assigned as well as the minimum qualifying marks by directing that the total marks would comprise of 250, of which the written test would carry 200 marks and viva voce 50 marks. 2. А considerable difficulty has been faced in working out of the directions under Article 142 of the Constitution. In this backdrop, аn interlocutory Application has been filed by the Union Government. xxx xxx xxx 4. During the course of the hearing, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ck down on the ground that the same results in diluting the involvement of the judiciary in the process of appointment of the President and members of the State Commission and the District Commission. The said Rule is against the spirit of the decision of the Constitution Bench in Rojer Mathew (supra). (B) Since Rule 6(1) of the Rules of 2020 has been struck down the notifications dated 10.04.2023 and 13.06.2023 would not survive. (C) Rule 10(2) of the Rules of 2020 to the extent it prescribes the tenure of the members of the State Commission and the President and members of the District Commission to be four years is struck down as not being in consonance with the spirit of the law laid down in the Madras Bar Association III (supra). (D) Since re-appointment of members of the State Commission and the President as well as members of the District Commission under Rule 10(2) of the Rules of 2020 is on the basis of recommendation to be made by the Selection Committee and as Rule 6(9) of the Rules of 2020 has been struck down in Vijaykumar Bhima Dighe (supra), till the time Rule 6(9) of the Rules of 2020 is suitably amended the Selection Committee can consider following the proce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icial dominance in the Search-cum- Selection Committee is in direct contravention of the doctrine of separation of powers and is an encroachment on the judicial domain. The doctrine of separation of powers has been well recognised and reinterpreted by this Court as an important facet of the basic structure of the Constitution, in its dictum in Kesavananda Bharati v. State of Kerala [ (1973) 4 SCC 225], and several other later decisions. The exclusion of the judiciary from the control and influence of the executive is not limited to traditional courts alone, but also includes Tribunals since they are formed as an alternative to courts and perform judicial functions. 150. Clearly, the composition of the Search-cum-Selection Committees under the Rules amounts to excessive interference of the executive in appointment of members and Presiding Officers of statutory tribunals and would undoubtedly be detrimental to the independence of judiciary besides being an affront to the doctrine of separation of powers. 151. In R.K. Jain v. Union of India [R.K. Jain v. Union of India, (1993) 4 SCC 119 : 1993 SCC (L&S) 1128], a three-Judge Bench of this Court asserted the need for independent sys....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the country. Not all of them, however, have inspired confidence in the public mind. The reasons are not far to seek. The foremost is the lack of competence, objectivity and judicial approach. The next is their constitution, the power and method of appointment of personnel thereto, the inferior status and the casual method of working. The last is their actual composition; men of calibre are not willing to be appointed as Presiding Officers in view of the uncertainty of tenure, unsatisfactory conditions of service, executive subordination in matters of administration and political interference in judicial functioning. For these and other reasons, the quality of justice is stated to have suffered and the cause of expedition is not found to have been served by the establishment of such tribunals. 8.64. Even the experiment of setting up of the Administrative Tribunals under the Administrative Tribunals Act, 1985, has not been widely welcomed. Its members have been selected from all kinds of services including the Indian Police Service. The decision of the State Administrative Tribunals are not appealable except under Article 136 of the Constitution. On account of the heavy cost and r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng for an alternative institutional mechanism in substitution of the High Courts must pass the aforesaid test in order to be constitutionally valid.' " ( emphasis in original ) 153. We are of the view that the Search-cum-Selection Committee as formulated under the Rules is an attempt to keep the judiciary away from the process of selection and appointment of Members, Vice- Chairman and Chairman of Tribunals. This Court has been lucid in its ruling in Supreme Court Advocates-on-Record Assn. v. Union of India [(2016) 5 SCC 1] (Fourth Judges case), wherein it was held that primacy of judiciary is imperative in selection and appointment of judicial officers including Judges of the High Court and the Supreme Court. Cognizant of the doctrine of separation of powers, it is important that judicial appointments take place without any influence or control of any other limb of the sovereign. Independence of judiciary is the only means to maintain a system of checks and balances on the working of legislature and the executive. The executive is a litigating party in most of the litigation and hence cannot be allowed to be a dominant participant in judicial appointments. 154. We are in com....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tribunals. Ergo, the Secretary to the sponsoring or parent Department shall serve as the Member- Secretary/Convener to the Search-cum-Selection Committee and shall function in the Search-cum-Selection Committee without a vote. 34. The Government of India is duty-bound to implement the directions issued in the earlier judgments and constitute the Search-cum-Selection Committees in which the Chief Justice of India or his nominee shall be the Chairperson along with the Chairperson of the Tribunal if he is a retired Judge of the Supreme Court or a retired Chief Justice of a High Court and two Secretaries to the Government of India. In case the tribunal is headed by a Chairperson who is not a judicial member, the Search-cum- Selection Committee shall consist of the Chief Justice of India or his nominee as Chairperson and a retired Judge of the Supreme Court or a retired Chief Justice of a High Court to be nominated by the Chief Justice of India and Secretary to the Government of India from the Ministry of Law and Justice and a Secretary of a department other than the parent or sponsoring department to be nominated by the Cabinet Secretary. As stated above, the Secretary of the parent ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) 7 SCC 369] . Therefore, clauses (i) and (ii) of Section 184(11) are declared as void and unconstitutional." (emphasis supplied) 84. The striking down of Rule 10(2) of the 2020 Rules as invalid, with respect to the term of office of the President of the District Commission, and Members of the State and District Commissions, can also not be found fault with, in light of the settled position of law, on the aspect of tenure of office in special fora. 85. Before we proceed with the next aspect, we may note that most of the writ petitioners before the High Court of Bombay underwent the impugned selection process. Having participated in the selection process, it was not open for them to have continued to challenge the same. To put it differently, the writ petitioners before the High Court of Bombay would not have continued to press the reliefs sought for, had they been selected. One cannot be permitted to approbate and reprobate at the same time. b) Paper II 86. The question that arises for our consideration herein, is with respect to the non-compliance of the directions issued in Limaye - I (supra) under Article 142 of the Constitution, especially with respect to Paper II. A dire....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... d) Reappointment 90. Even though the suggestion of the High Court of Bombay in Impugned Order - I, as regards reappointments, is infructuous on account of the amendment in 2023 to Rule 6(9) of the 2020 Rules, we deem it fit to deal with it and clarify the question of law that has been raised. 91. The High Court of Bombay has suggested that since reappointments under Rule 10(2) of the 2020 Rules were on the basis of the recommendations to be made by the Selection Committee, and as Rule 6(9) of the 2020 Rules had been struck down in Limaye - I (supra), till the time Rule 6(9) of the 2020 Rules is suitably amended, the Selection Committee can consider following the procedure for the appointment of Members of the State Commission, and President as well as Members of the District Commission by taking into consideration the procedure that was prevailing under Rule 8(18) of the 2019 Rules. In our considered view, this cannot be sustained in the eye of law. We say so for two reasons. The 2019 Rules were notified under the 1986 Act, which has been repealed by virtue of Section 107 of the 2019 Act. Rules formulated under a repealed statute, stand repealed in their entirety, once new Rul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection Committee. Rule 5 of the 2019 Rules "5. Selection of the President and Members of the District Fora.- xxx xxx xxx (5) Selection of President and Members of District Fora shall be made by the Selection Committee constituted under sub-section (1A) of section 10 of the Act." Rule 10 of the 2019 Rules "10. Selection of Members of the State Commission.- xxx xxx xxx (4) Selection of Members of the State Commission shall be made by the Selection Committee constituted under sub-section (1A) of section 16 of the Act." Section 10 of the 1986 Act "10. Composition of the District Forum.- xxx xxx xxx (1-A) Every appointment under sub-section (1) shall be made by the State Government on the recommendation of a selection committee consisting of the following, namely : - (i) the President of the State Commission Chairman; (ii) Secretary, Law Department of the State Member; (iii) Secretary in charge of the Department dealing with consumer affairs in the State Member. Provided that where the President of the State Commission is, by reason of absence or otherwise, unable to act as Chairman of the Selection Committee, the State Government may refer the matter to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1) of the 2020 Rules, and the consequent setting aside of the notifications, left the State of Maharashtra without any Selection Committee at all. Thus, no question of the Selection Committee considering reappointments under Rule 8(18) of the 2019 Rules, would arise at all, as the said Committee is not in existence. We further note that it was nobody's case that the 2019 Rules would be applicable, and many of the parties had already been reappointed for a second term under the 2020 Rules. In such view of the matter, Impugned Order - I, to the extent of suggesting the applicability of Rule 8(18) of the 2019 Rules qua reappointments, stands set aside. 96. Having set aside the said suggestion made by the High Court of Bombay, we now deal with the submissions made by those persons seeking reappointment. While some persons before us are seeking reappointment for a second term, others are seeking reappointment for a third. We have been informed that for most of them, their services had been terminated vide the order of the State of Maharashtra dated 06.10.2023. Vide interim order dated 27.06.2024, we had clarified that in the case of Presidents/Members whose appointments were terminated....
X X X X Extracts X X X X
X X X X Extracts X X X X
....- II, wherein the High Court of Bombay had directed that the candidature of the respondent herein/writ petitioner before the High Court, be considered for the post of Judicial Member of the State Commission, sans a written examination followed by a viva voce, as contemplated under the advertisement. We find no reason to interfere with the said order. As held by us in the earlier portions of this judgment, Limaye - I (supra) would have no bearing on appointments to be made under Rule 3(2)(1), 3(2)(a) and Rule 4(1) of the 2020 Rules i.e., posts of President of the State Commission, Judicial Members of the State Commission and President of the District Commission. The respondent herein had earlier served as the President of the District Commission for two terms, which makes her eligible to be considered for appointment under Rule 3(2)(a) of the 2020 Rules, to the post of a Judicial Member of the State Commission, provided she fulfils the criteria of being at least forty years of age. In such view of the matter, we are inclined to uphold Impugned Order - II. Consequently, Civil Appeal No. 9988 of 2024 stands dismissed. Qua Impugned Order - III 101. In Civil Appeal No. 10029 of 2024 a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... one of whom shall be the Chairperson, and the third member from the Executive, all of whom shall have voting rights. However, this shall not preclude the concerned Secretary from being an ex-officio Member of the Selection Committee, without voting rights. The proposal made by the Union of India qua Rule 6(1) of the 2020 Rules, may be accordingly modified. c. No written examination, followed by a viva voce, shall be required for appointment and reappointment to the posts of President of the State Commission, Judicial Members of the State Commission and President of the District Commission. d. A written examination followed by a viva voce shall be required only for appointment and reappointment to the posts of Non-Judicial Members of the State Commission and Members of the District Commission. e. The written examination for appointments to the State and District Commissions shall be conducted in consultation with the respective State Service Commissions. f. The proposal made by the Union of India qua Rule 4(1) of the 2020 Rules, as recorded by us in Para 72 of this Judgement, that the qualification for appointment to the post of President of the District Commission, shall b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ers of the State Commission, in other States, with/without having given the written examination followed by a viva voce (a) Those who are appointed and serving shall be allowed to complete their tenure in entirety. In the event of their tenure ending before the completion of the recruitment process under the new Rules to be notified, their appointment shall be allowed to continue until the completion of the said recruitment process. (b) Those who have been selected, but not appointed, on account of the concerned States having stayed the appointment process during the pendency of these appeals, shall be appointed to the respective post, and shall be allowed to continue in office till the entirety of their tenure. 5 Persons who are selected to the posts of Non-Judicial Members of the State Commission and Members of the District Commission, without having undergone a written examination followed by a viva voce. (a) If already appointed and serving: (i) In case the selection process had been completed prior to the decision of this Court in Limaye - I (supra), such persons shall be entitled to complete their tenure in entirety. In the event of their tenure ending before the completi....