Q.What is the maximum amount which can be claimed against defective goods/services under the following?
🔒You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
🔒 Start your 14-day free trial to unlock the full solution →Concept understanding — Consumer Disputes Jurisdiction
Let’s start with something you already know. Suppose you buy a phone online, and it arrives with a cracked screen. You call the seller, but they refuse to replace it. You want to take the matter to court. But which court? The one in your city, or the one where the seller’s office is? This is where jurisdiction comes in — it decides which court or consumer forum has the authority to hear your case.
The everyday intuition
Think of jurisdiction as the address of a dispute. Just like you can’t file a complaint about a traffic ticket at a family court, you can’t take a consumer complaint to any random court. The law lays down clear rules about where and which level of consumer forum can handle your case. These rules exist to avoid chaos — imagine every small dispute flooding the Supreme Court, or a seller being forced to defend a case in a city thousands of kilometres away.
The precise meaning
Under the Consumer Protection Act, 2019, jurisdiction in consumer disputes is decided by two things:
- Pecuniary jurisdiction — based on the value of the goods/services plus the compensation claimed.
- Territorial jurisdiction — based on where the cause of action arose, or where the opposite party (seller/service provider) is located.
A consumer can file a complaint at a forum that has jurisdiction over the place where:
- the opposite party actually and voluntarily resides or carries on business, or
- the cause of action (the problem) arose, or
- the consumer resides or works for gain (only if the opposite party has an office or branch there).
This last point is a big relief for consumers — you don’t always have to travel to the seller’s city.
The three-tier structure
The Act sets up a three-level hierarchy based on claim value:
- District Consumer Disputes Redressal Commission (DCDRC) — for claims up to ₹1 crore.
- State Consumer Disputes Redressal Commission (SCDRC) — for claims between ₹1 crore and ₹10 crore.
- National Consumer Disputes Redressal Commission (NCDRC) — for claims above ₹10 crore.
Each level also has appellate jurisdiction — you can appeal a District order to the State Commission, and a State Commission order to the National Commission. From the NCDRC, a further appeal lies to the Supreme Court of India.
The 2019 Act raised the pecuniary limits significantly compared to the old 1986 Act. Earlier, the District Forum handled claims up to ₹20 lakh, the State Commission up to ₹1 crore, and the National Commission above that.
Why jurisdiction matters
If you file a complaint in the wrong forum, it will be returned or dismissed. That wastes time, money, and effort. So before filing, a consumer must check:
- Is the claim value within the limit of this forum?
- Does this forum have territorial authority over the seller or the place where the problem happened? …
The three-tier consumer redressal machinery divides cases by the value of the claim, with each tier handling progressively larger amounts. …
District Forum handles claims up to ₹20 lakh, State Commission from ₹20 lakh to ₹1 crore, and National Commission above ₹1 crore.
The Consumer Protection Act set up a three-tier quasi-judicial redressal machinery, and each tier's pecuniary (money-value) jurisdiction was fixed so that smaller claims are handled closer to the consumer, while larger and more significant claims go to higher, more specialised forums:
- District Forum (now District Commission): can entertain complaints where the value of goods/services and compensation claimed does not exceed ₹20 lakh.
- State Commission: entertains complaints where the value exceeds ₹20 lakh but does not exceed ₹1 crore; it also hears appeals against District Forum orders.
- National Commission: entertains complaints where the value exceeds ₹1 crore; it also hears appeals against State Commission orders, with a further appeal lying to the Supreme Court. …
Showing the 12 most recent of 27 on this concept.
- CBSE 2026Set MARCH1 markMCQQ.Which one of the following options is not included as Redressal Forum according to the Consumer Protection Act?(a) (A) Lok Adalat(b) (B) District Level Forum(c) (C) State Level Commission(d) (D) National Level Commission
›Reveal solutionSolution
Lok Adalat is not a redressal forum under the Consumer Protection Act.
This GSEB Class-12 Commerce question tests the three-tier redressal agencies: District (level) Forum, State (level) Commission and National (level) Commission, classified by the value of the claim. Lok Ada …
- CBSE 2026Set ANNUAL1 markMCQQ.Where can be an appeal can be made if one dissatisfied with the order of District Commission? A) State Commission B) National Commission C) Supreme Court D) All of these
›Reveal solutionSolution
An appeal against a District Commission order lies with the State Commission, so the answer is A) State Commission.
The Consumer Protection Act sets up a three-tier quasi-judicial machinery for redressal of consumer grievances:
- District Commission (first level) — hears complaints up to a specified value.
- State Commission (second level) — hears higher-value complaints AND appeals against District Commission orders.
- National Commission (third level) — hears the highest-value complaints and appeals against State Commission orders. …
- CBSE 2026Set ANNUAL1 markQ.If a consumer is not satisfied with the orders of the State Commission, to which authority can be appeal against the decision?
›Reveal solutionSolution
A consumer dissatisfied with a State Commission's order can appeal to the National Commission.
The Consumer Protection Act sets up a three-tier redressal machinery: the District Consumer Disputes Redressal Commission, the State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission, arranged as an appellate hierarchy. An order of the District Commission can be appealed to the State Commission; an order of the State Commission can, in turn, be appealed to the National Commission; and an order of the National Commission can finally be appealed …
- CBSE 2026Set ANNUAL1 markMCQQ.In case a consumer is not satisfied with the order passed in the State Commission, he can further appeal in the National Commission within a time period of ________. (A) 30 days (B) 45 days (C) 50 days (D) 60 days
›Reveal solutionSolution
Under the consumer dispute redressal mechanism, an appeal from the State Commission to the National Commission must be filed within 30 days of the order.
The three-tier consumer dispute redressal machinery
- District Commission → appeal lies to the State Commission
- State Commission → appeal lies to the National Commission
- National Commission → appeal lies to the Supreme Court …
- CBSE 2025Set MARCH1 markQ.What is the monetary limit of claim in District Consumer Disputes Redressal Commission?
›Reveal solutionSolution
The District Commission handles complaints where the value of goods/services does not exceed Rs. 1 crore.
…
- CBSE 2025Set ANNUAL1 markMCQQ.District Forum can settle disputes (A) up to 5 lakhs (B) up to 10 lakhs (C) up to 15 lakhs (D) up to 1 crore
›Reveal solutionSolution
The lowest of the three-tier redressal agencies, the District Commission (earlier District Forum), handles consumer complaints up to a specified value — up to Rs 1 crore under the 2019 Act — making 'up to 1 crore' the correct option here.
…
- CBSE 2025Set ANNUAL1 markQ.Answer in one word/sentence: District Consumer Commission has the right to hear the complaints of how much value?
›Reveal solutionSolution
District Commission: complaints up to ₹1 crore (per the 2019 Act).
Under the Consumer Protection Act, 2019, the three-tier redressal system works on the basis of the value of the claim. The District Consumer Disputes Redressal Commission originally heard complaints where the value of goods/services paid as consideration did not exceed ₹1 crore (the State Commission above ₹1 crore up to ₹10 crore, and the National Commission above ₹10 crore). By a 2021 notifi …
- CBSE 2025Set ANNUAL1 markQ.Which commission should a consumer go to for redressal of dispute when a newly puchased TV worth ₹ 50,000 turns out to be defective?
›Reveal solutionSolution
A dispute over a ₹50,000 purchase falls within the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission, the lowest of the three redressal tiers.
The Consumer Protection Act sets up a three-tier quasi-judicial machinery for redressal of consumer grievances: the District Commission, the State Commission, and the National Commission, each with its own jurisdiction based on the value of goods/services paid for, along with compensation claimed. The District Commission handles complaints where this value is comparatively small (claims up to a particular threshold set under the Act/Rules, in the lower range), the State Commission handles disputes in the next, higher value band (and hears appeals from District Commission orders), and the National Commission handles disputes above the State Commission's limit (and appeals from State Commission orders).
…
- CBSE 2025Set ANNUAL1 markMCQQ.In case a consumer is not satisfied with the order passed in the State Commission, he can further appeal to the National Commission within ________. (A) 20 days (B) 25 days (C) 30 days (D) 45 days
›Reveal solutionSolution
The Consumer Protection Act prescribes a three-tier redressal structure (District, State, National Commission), and an aggrieved party must file an appeal against a State Commission's order to the National Commission within 30 days of receiving that order.
The consumer grievance redressal machinery under the Consumer Protection Act consists of a three-tier system:
- District Consumer Disputes Redressal Commission — for claims up to a prescribed lower limit.
- State Consumer Disputes Redressal Commission — for higher-value claims, and appeals from District Commission orders.
- National Consumer Disputes Redressal Commission — for the highest-value claims, and appeals from State Commission orders. …
- CBSE 2024Set MARCH1 markMCQQ.Members of which commission are appointed by the Central Government?(a) District Level(b) State Level(c) National Level(d) International Level
›Reveal solutionSolution
Members of the National-level commission are appointed by the Central Government.
In the consumer-grievance redressal machinery, the district forum and the state commission are constituted by the State Government, while the National Commission (the apex body) is constituted and its members …
- CBSE 2024Set ANNUAL1 markMCQQ.If the value of a defective product is ₹10 lakhs, the consumer can file a case in(a) District Forum(b) State Commission(c) National Commission(d) All of the above
›Reveal solutionSolution
A consumer dispute worth ₹10 lakhs is filed at the District level (District Consumer Forum/Commission) — the three-tier redressal machinery under the Consumer Protection law splits jurisdiction by the value of goods/services and compensation claimed, with District handling the smallest claims, State the middle band, and National the largest.
The Consumer Protection Act set up a three-tier quasi-judicial machinery: the District Forum/Commission (the first and lowest level, handling claims up to a prescribed pecuniary limit), the State Commission (handling claims above the District limit and up to a higher prescribed limit, and also hearing appeals against District Forum orders), and the National Commission (handling the highest-value claims, and hearing appeals against State Commission orders, with a further appeal lying to the Supreme Court). A claim value of ₹10 lakhs is well within the lower/District band under this structure (whether assessed under the original Act's slabs or the amended, higher slabs that apply today) — it is only when …
- CBSE 2023Set MARCH1 markMCQQ.Which among the following is the apex authority as per Consumer Protection Act ?(a) District Forum(b) National Commission(c) State Commission(d) High Court
›Reveal solutionSolution
Correct option: (b) National Commission — the apex body of the three-tier consumer grievance redressal machinery.
This one-mark question is from the 'Consumer Protection' chapter of the Kerala Plus Two Business Studies syllabus. The Act sets up a three-tier quasi-judicial machinery to redress consumer disputes:
Tier Agency District level District Forum / District Commission State level State Commission National (apex) level National Commission …
🎓Unlock everything free for 14 days
- ✓Full step-by-step solutions
- ✓Concept-first explanations
- ✓Methods, shortcuts & mistakes
- ✓PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.