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For determining pecuniary jurisdiction, only value of the goods or services paid as consideration has to be taken

In M/S. PYARIDEVI CHABIRAJ STEELS PVT. LTD. vs  NATIONAL INSURANCE COMPANY LTD., complaint was filed before the NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION (NCDRC) against claim repudiated by the insurance provider.

At the onset, the NCDRC observed that a preliminary point arises as to how this Consumer Complaint is maintainable before the NCDRC because the value of the consideration paid in the present case i.e. premium paid for taking the Insurance Policies was only Rs.3,20,525/- and Rs.1,23,037/- the total of which comes to Rs.4,43,562/- (Rupees Four Lac forty three thousand five hundred and sixty two only), which is less than the consideration paid of more than Rs.10,00,00,000/- (Rupees Ten crores) as provided under Section 58 (1) (a) (i) of the Act of 2019.

The complainant had argued that though the above section restrict the consideration to Rs. 10 crores, but in the case of an insurance policy, a liberal view should be taken and the compensation sought or the insured amount should be considered which in this case is above Rs. 10 crores.

Disagreeing with the complainant and referring to a three Member Bench of this Commission in Ambrish Kumar Shukla & 21 Ors. Vs. Ferrous Infrastructure Pvt. Ltd, I (2017) CPJ I (NC), the NCDRC observed that the Parliament, while enacting the Act of 2019  to ensure that Consumer should approach the appropriate Consumer Disputes Redressal Commission whether it is District, State or National, decided that only the value of the consideration paid should be taken into consideration while determining the pecuniary jurisdiction and not value of the goods or services and compensation, and that is why a specific provision has been made in Sections 34 (1), 47 (1) (a) (i) and 58 (1) (a) (i) providing for the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission and the National Commission respectively as otherwise it would lead to confusion. As an example, the NCDRC observed that, if a person has agreed to purchase a Flat/ Apartment/ Plot for about Rs.60,00,000/- and he is claiming refund as also compensation of Rs.50,00,000/- then the value will exceed Rs.1,00,00,000/- and the Consumer Complaint has to be filed before  the National Commission. Similar, would be the case of taking Insurance Policy of above Rs.1,00,00,000/-or may be below Rs.1,00,00,000/- but taking into consideration the premium paid and the compensation claimed if the value exceeds Rs.1,00,00,000/- the Consumer Complaint has to be filed before the National Commission.


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