2021 In Review: Landmark judgments by the Supreme Court

2021 In Review: Landmark judgments by the Supreme Court

2021 In Review: Landmark judgments by the Supreme Court

Leading cases decided by the honourable Supreme Court in the year 2021 are going to be remembered as benchmark judgments in the evolution of consumer jurisprudence. Let us know here, what significance these hold.

Dr Prem Lata

Supreme Court (SC) is the final court of appeal in the country. As per Consumer Protection Act (CPA), cases reach the Court when judgements of the National Consumers Disputes Redressal Commission (NCDRC) come in to appeal by the losing party. The SC has worked very well in 2021 to adjudicate consumer disputes that came before it. It also took cognizance of some vital consumer issues which were affecting the consumer rights adversely by giving a just interpretation to the law to end consumer sufferings. 

To put this into perspective, let us recap a bit. Year 2019 was a table-turning year when Consumer Protection Act 1986 was repealed with the Act of 2019. This new law came into force in July 2020. Consequently, year 2021 was full of queries, debates and implementation of issues arising from repeal of old Consumer Protection Act. As per the Indian Constitution, SC judgements are to be followed by all courts of the country and their interpretation must be observed in adjudicating the cases at various levels by courts at all levels. Here are the top 10 cases in Consumer Law decided in 2021:

CASE 1

Ireo Grace Realtech Pvt. Ltd. Vs Abhishek Khanna & Others, Civil Appeal No. 5785 of 2019 (Supreme Court)

Bench -Dr Dhananjaya, Y Chandrachud, Indu Malhotra, Indira Banerjee

Decided on –January11, 2021

Ref. Pioneer Urban Land and Infrastructure Ltd Vs Govindan Raghavan

SC held-

“We are of the view that the incorporation of such one-sided and unreasonable clauses in the Apartment Buyer’s Agreement constitutes an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act. Developer cannot compel the apartment buyers to be bound by the one-sided contractual terms contained in the Apartment Buyer’s Agreement.”

 CASE 2

Narinder Chopra V/S Jaiprakash Associates (NC)

Consumer Complaint No 3258 0f 2017 along with IA 330 of 2021&IA 1130 Of 2021

Decided On 16.5.2021

Law point:  

  1. Whether pending matters are to be transferred to appropriate commission after enhancement of pecuniary jurisdiction 

NC held-

  • There is no provision for transfer of pending cases in the new Act of 2019
  • The transitional provisions contained in Sections 31, 45 and 56 expressly indicate that the adjudicatory personnel who were functioning as Members of the District Commission, SCDRC and NCDRC under the erstwhile legislation shall continue to hold office under the new legislation. 
  • Previous decisions of the NCDRC which had interpreted after amendments 2002, that enhanced pecuniary jurisdiction, with prospective effect. Ref. Cases Southfield Paints and Chemicals Pvt. Ltd. v. New India Assurance Co. Ltd. & Premier Automobiles Ltd. v. Dr Manoj Ramachandran, where the NCDRC held that the amendments enhancing the pecuniary jurisdiction are prospective in nature.

CASE 3 

M/s Daddy’s Builders Pvt. Ltd. & Another Vs Manisha Bhargava and Another 

(Petition for Special Leave to Appeal (Civil) No. 1240 of 2021)

Decided on February 11, 2021. Supreme Court of India

SC held-

  • Written statement by opposite party to complaint within 30 days or such extended period, not exceeding 15 days, should be read as mandatory
  • Commencing point of limitation of 30 days, under the aforesaid provisions, would be from the date of receipt of notice accompanied by a copy of the complaint, and not merely receipt of the notice

 CASE 4 

Ireo Grace Realtech Pvt. Ltd. Vs Abhishek Khanna & Others Civil Appeal No. 5785 Of 2019 (Supreme Court 

Bench -Dr Dhananjaya, Y Chandrachud, Indu Malhotra, Indira Banerjee

Decided on –January11, 2021

SC held-

  • Both the acts are equal and not conflicting or inconsistent to each other, give additional remedy to the consumers under Section 100 of CP Act 2019 & Section 88 of RERA Act 2019
  • Section 79 of the RERA Act bars any civil proceedings in real estate matters but does not bar Consumer Commissions
  • Section 71(1) of the RERA Act entitles a complainant to withdraw the proceedings under the CP Act with the permission of the Forum or Commission and file under RERA Act. 

CASE  5

Honda Cars India Limited Vs Sudesh Berry CIVIL APPEAL NO.6802 OF 2021 (Arising out of SLP (C) No.11986/2020) SC 

Decided on 12 November, 2021

SC held

  • If there be any deficiency in service by the dealer or the authorised centre in rendering assistance for repairs of the vehicle, the manufacturer of the vehicle cannot be held liable. 

CASE 6  

TATA Motors Ltd Vs Antonio Paulo Vaz & Another, 2021 SCC Online SC 125 

SC held 

  • Manufacturer and dealer have principal to principal relation and not of principal to agent. Manufacturer not held liable for the wrongs of dealer.                                                                 

CASE  7  Manohar Infrastructure and Constructions Private Ltd Vs Sanjeev Kumar Sharma & Ors.; Citation: LL 2021 SC 714]

Decided on December 2021

SC held

  • NC has discretionary power vested with it to impose any condition while giving stay and rightly ordered to pay entire amount as determined amount by State Commission
  • This condition has to do nothing with mandatory requirement of depositing 50 per cent of determined amount by State Commission. 

CASE  

M/s Sheth M L Vaduwala Eye Hospital Vs Oriental Insurance Company Limited and Others SC Judgment by J. Dr Dhananjaya Y Chandrachud, J. Dt 11 Dec 2021

SC held 

An insurance policy taken by doctors for professional indemnity can’t be used to make insurance companies pay the liability of compensation to patients on behalf of the hospital which is not insured. 

CASE 9. 

M/S. Newtech Promoters And Developers Pvt. Ltd Vs State Of Up & Ors. 

Civil Appeal No(S). 6753 Of 2021 (Arising Out Of SLP(Civil) No(S). 3426 Of 2021)

SC Judgment Dt 11 Nov 2021 

SC held 

  • To ensure greater accountability towards consumers and in view of the objective of the act, ongoing projects are also brought under the provisions of the act hence retroactive application of RERA Act confirmed 
  • Section 18 confers right upon an allottee to get refund of the amount deposited with the promoter with interest if the promoter fails to give possession by the date specific
  • Single member of the authority under Section 81 of the Act authorised to order for refund and under Sec 40 can provide for collection of funds as revenue.

CASE  10 Union Bank Of India v/s Rajasthan Real Estate Regulatory 

High Court Of Judicature For Rajasthan Bench At Jaipur D.B. Civil Writ Petition No. 13688/2021 Bench: Akil Kureshi, Uma Shanker Vyas 

Decided on 14.12.2021 

H.C of Rajasthan held 

  • That pursuant to taking possession of the project, the bank enters into the shoes of the promoter and becomes the assignee of the promoter and thus, amenable to jurisdiction of RERA.
  • The RERA would prevail over SARFAESI Act‘ 
  • The rights of the real estate allottees cannot be compromised for the legal rights of Bank
Food Systems Approach: Towards achieving safe, nourishing and sustainable diets

Food Systems Approach: Towards achieving safe, nourishing and sustainable diets

Food Systems Approach: Towards achieving safe, nourishing and sustainable diets

Food is an integral part of our life and thus there has always been an exclusive focus on what we eat. Unless the food we eat is safe, we become vulnerable to food-borne illnesses, which in turn reduces our ability to absorb nutrients, fight infections thereby, impacting our overall health. Therefore, it becomes extremely critical to ensure food safety for optimum health and well-being of people. However, is there a sure-shot winning formula available? Writes Shri Arun Singhal, CEO, FSSAI.
To address public health issues related to food safety and nutrition holistically, there is a need to look beyond a specific focus area and understand the bigger picture. This includes aggregating the entire range of stakeholders and their interlinked value-adding activities—originating from agriculture, manufacturing, processing, distribution and retailing together on a level-playing field with a focus on broader economic, societal and sustainable development. This approach is called the ‘Food Systems Approach’.

The Food Systems encompass various stages of the food value chain ranging from production, storage, processing and manufacturing, to distribution, retail, and consumption. This is a highly interconnected approach which involves a shared responsibility between governments, producers, food businesses along with consumers. Here, everyone has a role to play from farm to table to ensure that the food we consume is safe, nourishing and sustainable to both people and the planet.

Addressing adulteration 

With market and trade globalisation, people in both developed and developing nations have been experiencing many changes in their way of living as well as eating habits. Within the supply chain which is increasingly becoming more and more complex in the globalised market, adulteration (unintentional or intentional) is the key food safety issue. Regulatory bodies are challenged with major food safety and public health issues resulting from changes in the food production and supply along with environmental changes, leading to contamination of food with new and emerging bacteria, toxins, and antibiotic resistance and consumer preferences and habits leading to increase in imported foods. 

Increase in imports of food/processed food items due to cost concerns, consumer demand for diverse food products also provides chances for food contamination/adulteration. At this juncture, what should be the effective strategies to address the emerging challenges to provide safe, healthy, nutritious and sustainable produced food to the world’s population? The answer lies in the food systems approach. The world needs to rethink the ways in which food is produced, processed and consumed.

Sustainable Development Goals by 2030

This year’s Food Systems Summit, scheduled to take place in the month of September in New York, envisions for a common platform for ambitious actions, innovative solutions, and strategies to transform the world’s food systems, as part of the Decade of Action to achieve the Sustainable Development Goals by 2030. Guided by the Five Action Tracks mentioned below, the Summit 2021 envisions bringing together key players and drawing on the expertise of actors from the worlds of science, business, policy, healthcare and academia, as well as farmers, indigenous people, youth organisations, consumer groups, environmental activists, and other key stakeholders. These five steps include: 

  •         Ensure safe and nutritious food
  •         Shift sustainable consumption patterns
  •         Boost nature-positive production
  •         Advance equitable livelihoods, and
  •         Build resilience to vulnerabilities, shocks and stress

 Convened by the United Nations Secretary General, the first ever UN Food Systems Summit’s fundamental commitment is inclusivity. This is truly a people’s Summit, and everyone everywhere is encouraged to contribute – from small farmers and research scientists, to indigenous leaders and corporate executives, to youth organisers and environmental activists, to supermarket cashiers and avid home cooks. There are many ways to get involved in the Food Systems Summit, from becoming a Food Systems Hero, helping to raise awareness of food systems on social media, to hosting or joining a dialogue. This will help bring about tangible, positive changes to the world’s food systems.

Towards ‘Sahi Bhojan. Behtar Jeevan’ 

Today, India needs a new paradigm where the food systems approach becomes more holistic with policy coherence across all sectors including agriculture, food, health, trade and environment to name a few. To narrow down the gap, the Food Safety and Standards Authority of India (FSSAI), an apex food regulator in the country, has embarked on a large-scale effort to transform the country’s food systems in order to ensure safe, healthy and sustainable food for all Indians through the ‘Eat Right India’ movement. The tagline – ‘Sahi Bhojan. Behtar Jeevan’, thus, forms the foundation of this movement.

The Eat Right India movement envisions safe and nourishing food for all Indians produced in environmentally sustainable systems. This has led the movement to gain a lot of national and international recognition. Recently, the Eat Right India movement was declared as one of the top visionaries for the Food Systems Vision Prize 2050. This Prize was instituted by the US-based Rockefeller Foundation in association with Second Muse and Open Ideo. The ten finalists shortlisted among over 1300 applicants were announced as Top Visionaries.

Based on the key themes of Eat Safe, Eat Healthy, and Eat Sustainable– the Eat Right India movement adopts a judicious mix of regulatory, capacity building, collaborative and empowerment approaches to ensure that our food is good both for the people and the planet. Further, it builds on the collective action of all stakeholders – the government, food businesses, civil society organisations, experts and professionals, development agencies and citizens at large. 

The action plan of the movement includes a bouquet of initiatives to promote demand for, and supply of, safe and healthy food in a sustainable way. While the supply-side interventions are primarily aimed at building the capacity of food businesses to promote self-compliance, the demand-side initiatives work towards motivating consumers to demand safe and healthy food, by encouraging good food practices and habits.

The Five Key Actions

Eat Right India has devised FIVE KEY ACTIONS to achieve its vision. 

  • The first action is to formulate new regulations to promote healthy eating. FSSAI has come up with regulations on labelling, elimination of trans-fats, mandatory fortification of milk, oil and rice, and strengthening food testing. 
  • The second is to train and build capacity of various stakeholders in the food ecosystems such as food handlers, administrators, frontline health workers, etc. to help food businesses succeed, ensure compliance of food safety measures and serve safe food to the public at large. 
  • The third is to certify various food businesses from clusters of street food vendors to restaurants, schools and campuses based on benchmarks for food safety and hygiene. So far, 32 Street Food Hubs have been certified, thereby raising the confidence of consumers in consuming food from local street food hubs; and over 540 campuses are now certified as Eat Right Campus. 
  • The fourth is to nudge food businesses by encouraging them to reformulate packaged foods into healthier options and to use safe and sustainable packaging materials; reduce usage of fat, sugar and salt in food; donate food under one of our initiatives – Save Food Share Food. 
  • The final action point is to ignite large-scale social and behavioural change among the people of India towards safe, healthy and sustainable eating habits through initiatives such as Eat Right Fairs, mobile food testing vans called ‘Food Safety on Wheels’, and awareness campaigns on electronic and social media platforms.

Eat Right India is also aligned with various government flagship programmes such as POSHAN Abhiyaan, Anemia Mukt Bharat, Ayushman Bharat and Swacch Bharat Abhiyaan. To institutionalise the Eat Right India, an inter-ministerial steering committee has been set up with representatives from all related ministries and departments such as women and child development, environment, science and technology, agriculture, food processing, food and public distribution etc. This also includes members from our training and audit community, development partners and industry representatives through associations. This would ensure continuity, scale up and real time monitoring of various initiatives and programmes under Eat Right India.

Eat Right India’s ‘Whole of Government’ Approach

Eat Right India brings together diverse stakeholders from various institutions such as government departments, consumer organisations, development partners, industry associations, academia, professional associations etc., working closely on the food systems identified from pre-existing multi-stakeholder platforms or coalitions working on various food-related issues. The movement adopts a ‘whole of government’ approach, bringing together all food-related mandates from ministries of agriculture, health, environment and others.

ABCs of the processed foods!

ABCs of the processed foods!

ABCs of the processed foods!

Processed foods have become a part of our lives. Experts recommend to avoid eating them in excess due to their unhealthy nutrition composition or the additives present in them. But most of the food we eat today has undergone some sort of processing and many times these processing procedures are even necessary to make the food edible. These processing measures do not alter the nutrition composition of a food product. In this article, we attempt to present the classification of processed foods and prepare a guide to differentiate between minimally processed and ultra-processed foods.

Richa Pande

All processed foods are not same. In fact, some foods must undergo primary and secondary stages of processing to make them palatable; sometimes to make them even edible too. There are three stages of food processing: primary, secondary, and tertiary. Foods prepared using primary and secondary techniques are classified as minimally processed foods.  Processing techniques including baking, freezing, grinding, removal of inedible portions, drying, heating, milling, pasteurisation, roasting, etc.  can be classified as primary and secondary food processing techniques. 

These techniques also reduce the cooking time taken to prepare a meal and make things convenient for us. Imagine the efforts we will have to put if we must deshell the nuts every time, we eat them. But unshelled nuts can become rancid easily and thus they are available in vacuum packaging, another processing step that prevent nuts from becoming rancid. They also help in prevention of spoilage and extending the shelf life of foods we consume daily. Milk packs we use daily at our homes undergo pasteurisation, a processing technique that prevents milk and other dairy products from spoiling without altering their nutritional properties. 

 Saying no to ultra-processed foods

Ultra-processed foods on the other hand are typically foods with unhealthier nutrient profiles. They are either calorie dense and/ or have high fat or salt or sugar content or are high in all three of these nutrients of concern. This is the reason why ultra-processed foods are considered unhealthy. Having them regularly can increase our risk of having health concerns such as obesity, heart disease, diabetes, high blood pressure, cancer, hormonal disorders, anxiety, and depression. 

Another concern about ultra-processed foods is the food additives in them. They are added in the food to increase the shelf life of the food or to retain its appearance or enhance its taste. Usually, they are not a cause of concern as the food regulatory authorities have set limits for these additives and food manufacturers to adhere to them. But it is important to note that some food additives may have no adverse effect on an adult weighing 70 kgs could be harmful for a child weighing 20 kgs. For example, it’s okay for adults to have foods with added food colors but some of these colors have been found to increase hyperactive behaviors in children. Also, adults need to mind the portion sizes to minimise their exposure to these food additives.

Ultra-processed foods have also been found to have negative impacts on the environment. There are many ways ultra-processed foods can damage the environment. Most of the ultra-processed foods in market are available in small disposable packaging. As ultra-processed foods are easily available at low cost, their consumption is quite high worldwide. These food packaging contribute to major environmental waste production. Many UPFs contain palm oil, which is known to have both negative health and environmental effects. One of the major reasons why health and environment activists insist on reducing the consumption of ultra-processed foods is because doing so would not lead to nutritional deficiencies in humans and would have positive impacts on their health.

Keeping all this in mind, we must aim to reduce the consumption of ultra-processed food and opt for food stuff locally grown with low environmental impacts that is affordable, nutritionally adequate, and safe for our consumption.

Differentiating between minimally processed & ultra processed foods

One of the easiest ways to so is by going through the product’s ingredient list. Ultra-processed foods typically have more ingredients in them. It is one of crucial ways to identify ultra-processed foods, foods that are known to have adverse effect on our health. 

Let’s understand this with the help of an example- The pasteurised milk pack we use daily is a minimally processed food item. It is nutritious and is good for health. On the other hand, flavoured milk available in market can be classified as an ultra-processed beverage. It can have up to 18 grams of sugar added in one serving of milk with added food colours and other additives. 

Another example that can help us to understand the difference between minimally processed foods and ultra-processed foods are corn and its different forms available in the market. Foods like husked corn, frozen sweet corn kernels, and dried corn kernels are minimally processed foods. Ready-to-eat popcorns, cornflakes, and nachos are corn-based food items that can be classified as ultra-processed foods. 

 Sometimes we can make food handling choices that are relatively healthier. For instance, we can choose not to roast corn after removing the husks and steam it instead as roasting the corn will lead to acrylamide formation which isn’t good for our health. Similarly, we can choose to pop corn kernels at home with less salt and butter or oil instead of having ready-to-make popcorns bought from the market as they are loaded with fat and salt.

Look at the table below. It will help you further to differentiate between minimally processed and ultra-processed foods- 

Unprocessed

Food item 

Minimally processed Ultra-processed
Wheat Flour Cookies
Potato Baked potato French fries
Pineapple Canned pineapple Pineapple juice powder
Fresh fish Canned fish Fish nuggets
Apple Apple custard, Apple juice, Apple pie, Apple puff snacks
Corn frozen sweet corn kernels, dried corn kernels Instant popcorns, cornflakes, and nachos

 

By developing an understanding about minimally-processed and ultra-processed foods, we can make food choices that are relatively healthier. For instance, we can choose not to roast corn after removing the husks and steam it instead as roasting the corn will lead to acrylamide formation which isn’t good for our health. 

 Similarly, we can choose to pop corn kernels at home with less salt and butter or oil instead of having ready-to-make popcorns bought from the market as they are loaded with fat and salt. Likewise, we can opt to have a fruit or freshly prepared juice without added sugar instead of drinking sugar loaded drinks readily available in the market.

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All that you want to know about IPO

All that you want to know about IPO

All that you want to know about IPO

Investing in IPOs (initial public offerings) has been picked up lately. The trend is going to be here with Indian companies minting millions including the likes of Nykaa, who made its employees millionaires overnight with the listing. In the year 2021 alone, we saw nine startups to went public raising funds to the tune of $5.86 Bn. The year 2022 might see 16 startups to go public out of which two have received SEBI’s approval and five DRHPs are yet to be approved. There are quite a few Indian companies including MobiKwik, Delhivery, travel giant Ixigo, OYO, Droom to file their draft-red-herring-prospectus (DRHP). We consumers invest in IPO to get good returns. On the other hand, IPO is a similar process in which companies raise money from the market with the condition. So, what are the procedure to try one’s luck at the bourses? Let us check here.

Subas Tiwari

IPO or Initial Public Offering occurs when a company issues its common stock or shares to the public for the first time. IPO is issued by limited companies so that they can get listed on the stock exchange. After listing on the stock market, the shares of the company can be bought in the stock market. The company issues IPO to raise funding in case of investment or expansion. The two main reasons for a firm to start an IPO are to raise capital and to enrich former investors.

There are two types of IPO

  • Fixed Price IPO- Fixed Price IPO can be referred to as the issue price that some companies set for the initial sale of their shares. Investors get to know about the price of the shares which the company decides to take public. The demand for shares in the market can be ascertained after the issue is closed. If investors participate in this IPO, they must ensure that they pay the full value of the shares at the time of applying.
  • Book Building IPO- In the case of book building, the company initiating the IPO offers investors a 20 per cent price band on the shares. Interested investors place bids on the shares before the final price is decided. Here investors need to specify the number of shares they wish to buy and the amount they are willing to pay per share.

The lowest share price is known as the floor price and the highest stock price is known as the cap price. The final decision regarding the price of the shares is determined by the bids of the investors. 

Some recent examples

IPOs are ready to make the stock market buzzing in the new year as well. Companies are expected to raise up to Rs 1.5 lakh crore (IPO of 2022) from IPOs in 2022 as well, after the spurt in 2021. The IPO of the company (Ruchi Soya IPO) from Gautam Adani to Baba Ramdev is going to hit this month. Significantly, 2021 was the best year for IPO in the last two decades in the Indian market. Excess liquidity and increased participation from retail investors continued to fuel the IPO’s enthusiasm and companies raised over Rs 1.2 lakh crore this year amid the gloom of the pandemic. LIC’s IPO is also about to come.

Gautam Adani and Baba Ramdev’s companies to hit IPO

Adani Wilmar’s IPO is going to come this month, which will be around Rs 4500 crore. Ruchi Soya’s IPO of about Rs 4300 crore is also going to hit this month. Go Airlines is also going for close to Rs 3600 crore IPO. MobiKwik’s Rs 1900 crore IPO is also expected this month. Apart from these, Rs 998 crore IPO of ESAF Small Finance Bank Ltd and Rs 500 crore IPO of Traxon Technologies will also come this month. On the other hand, Skanray Technologies will have an IPO of Rs 400 crore as well as OFS. ESDS Software Limited’s IPO of Rs 332 crore is also coming with OFS.

LIC’s IPO will come this year

In the year 2022, massive fund raising through the primary market will start with a big IPO of public sector company Life Insurance Corporation (LIC). Apart from this, many new age digital players are ready to enter the IPO market. 

However, some believe that the enthusiasm will be a bit low in 2022. The market sentiment next year will be affected due to the new nature of Covid-19 and in such a situation the uncertainty is taking a toll on the markets and the economy. The 2022 IPO will not be as encouraging as 2021 for the markets, especially considering that some of the big public issues like Paytm has not done well post listing in the recent past.

Let’s know how does IPO work

IPOs can be rewarding investments. As an investor, you definitely don’t want to miss out on these opportunities that don’t present themselves all too often. Here’s what you need to know about IPOs before investing.

  • An IPO is an offer of new shares of a private company to the public for the first time. Ownership changes hands – from being entirely privately held, the company is now giving ownership to the masses
  • Not every company can afford to raise enough money from private investors. Also, going public presents other benefits than just raising capital
  • As an investor, you stand to make extremely high returns on your investment if you pick the right IPOs

Let’s get the basics right first

  • An IPO is an offer of shares by a company in exchange for capital
  • The entire process is regulated by SEBI – the Securities & Exchange Board of India
    To buy shares of any company in an IPO, you have to bid for these shares
  • If your bid is accepted, you are allotted shares. In case shares aren’t allotted in case of over subscription, you’ll get your money back
  • If you participate and buy stocks in an IPO, you become a shareholder of the company
  • As a shareholder, you can enjoy profits from sale of your shares on the stock exchange, or you can receive dividends offered by the company on the shares you hold
  • To file an IPO, companies must measure up to strictly enforced criteria and regulations to get SEBI’s (Securities Exchange Board of India) approval
  • IPO issues is open to all retail investors. Any client can apply through a broker.

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2021 In Review: Landmark judgments by the Supreme Court

Where can consumer file complaint about electricity

Where can consumer file complaint about electricity

Hon’ble Supreme court settled with a landmark judgement in the matter of U.P. Power Corporation Ltd.& others V/s Anis Ahmad & others 2013 along with eight more cases of similar nature in Electricity matters

The issues before the court were as to-

  • Whether complaints filed by the consumers against  Electricity Boards are maintainable before the consumer courts constituted under Consumer Protection Act
  • Whether the consumer forums have the jurisdiction to entertain a complaint filed by a consumer or a person against assessment made for unauthorized use of electricity under section 126 of the Electricity act 2003 or action taken by billing with penal rates  under sec. 135 to 140 of the Electricity act 2003.

Supreme Court in its final verdict held as hereunder;

  1. In case of any inconsistency between the electricity act 2003 and the consumer protection act 1986,the provisions of consumer protection act will prevail with regard to the matters of services defined under sec. 2(1)(o) or complaint under sec. 2(1)(c) of the consumer protection act 1986.
  2. A complaint against the assessment made for unauthorized use of electricity under section 126 of electricity act or action taken by billing with penal rates under sec. 135 to 140 cannot be challenged before the consumer courts established under consumer protection act
  3. The electricity act 2003 and consumer protection act runs parallel for giving redressal to consumers who fall within the definition of consumer and complainant under the consumer protection act under sections 2(1 )(c)&(d)

Reference, Citation U.P. Power Corporation Ltd.& others V/s Anis Ahmad & others 2013

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