NCDRC clarifies pecuniary jurisdiction to hear disputes

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Pecuniary jurisdiction ncdrc
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In a significant order, the National Consumer Disputes Redressal Commission (NCDRC) has held that, for determining the pecuniary jurisdiction of consumer fora, the value of the goods/services “paid” as consideration alone has to be taken, and not the value of the goods/services “purchased”.

In M/S Pyaridevi Chabiraj Steels Pvt Ltd v National Insurance Company Ltd & Ors, the order was passed by a bench of Justice R K Agrawal (president) and S M Kantikar (member) while hearing a consumer complaint filed on behalf of a Kolkata-based factory against its insurer, National Insurance Company.

The claim of the complainant was that the insurance company had wrongly repudiated its insurance claim worth ₹280 million (US$3.8 million), which was purchased by paying a premium of ₹443,562. The NCDRC held that the value of the consideration paid in the case was “less” than ₹100 million (the pecuniary jurisdiction of NCDRC as per section 58(1)(a)(i) of the Consumer Protection Act, 2019) and the complaint shall not be maintainable before the commission.

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