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by sayum
14 June 2025 3:48 PM
"Consumerism is the spirit of the Constitution...It is not merely a statutory right, but a natural one"- In a significant decision Supreme Court of India delivered a path-breaking verdict reasserting the constitutional sanctity of consumer rights, while striking down executive-dominated appointment mechanisms and calling for the establishment of permanent Consumer Dispute Redressal Fora. The decision redefined the contours of consumer protection jurisprudence in India and provided binding guidelines for future appointments and reappointments under the Consumer Protection Act, 2019.
The judgment, authored by Justice M.M. Sundresh and concurred by Justice Abhay S. Oka, reaffirmed that consumer justice is intertwined with social, economic, environmental, and political justice—thereby rendering consumer litigation a form of public interest litigation vital to participatory democracy.
The matter originated from challenges to the Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of office, resignation and removal of the President and Members of State Commission and District Commission) Rules, 2020, framed under the Consumer Protection Act, 2019.
Writ petitions were filed before the Bombay High Court, challenging:
The composition of Selection Committees under Rule 6(1),
The tenure under Rule 10(2),
The requirement of written exams and viva voce, and
Procedural irregularities in recruitment advertisements.
The High Court struck down key provisions, leading to multiple appeals to the Supreme Court by appointees, States, and the Union Government.
“Consumer justice is not subordinate to administrative convenience” — Court Batters Executive Control Over Consumer Fora
Whether executive-dominated Selection Committees under Rule 6(1) were constitutional?
✅ Held: Unconstitutional. The Court affirmed that judicial primacy is a constitutional necessity for quasi-judicial fora:
“Executive dominance in appointments to quasi-judicial tribunals is an affront to the doctrine of separation of powers.” – Rojer Mathew v. South Indian Bank Ltd., (2020) 6 SCC 1.
➤ Rule 6(1) was struck down for lacking judicial majority in the selection process.
Whether the prescribed 4-year tenure under Rule 10(2) was valid?
❌ Held: Struck down as contrary to rulings in Madras Bar Association v. Union of India [(2021) 7 SCC 369].
“A short tenure is anti-merit and disincentivizes talented individuals.” – MBA-III judgment.
✅ The Court mandated a 5-year minimum tenure, directing incorporation of the same in the new Rules.
Applicability of written exams and viva voce to Judicial members?
❌ Held: Directions in Limaye – I requiring written exams for all posts were clarified as not applicable to:
Presidents of State Commission
Judicial Members of State Commission
Presidents of District Commissions
“Requiring High Court Judges or District Judges to undergo exams is impractical and anomalous,” the Court said, allowing appointments through consultation with Chief Justices.
Validity of appointments already made under disputed process?
✅ Held: Validated. The Court upheld appointments made on 05.10.2023 in Maharashtra after finding substantial compliance with the earlier directions:
“A decision taking away the civil rights of selected candidates could not have been rendered without hearing them.”
Details of the Judgment
On Consumerism as a Constitutional Concept
The Court went to great lengths to elevate consumerism as a natural and constitutional right, linking it with the Preamble, Fundamental Rights, Directive Principles, and the democratic structure of India.
“Consumer litigation is a form of public interest litigation... The consumer is the invisible hand of the economy and the soul of social justice.”
Referencing Spring Meadows Hospital, Lucknow Development Authority, and Indian Medical Association, the Court traced the evolution of Indian consumer law and emphasized its public-centric nature.
On Rule-Making Power
While the Union of India argued that recruitment and appointment fall within its exclusive domain under Section 101 of the 2019 Act, the Court directed it to:
Amend and notify new Rules within 4 months
Ensure judicial majority in Selection Committees
Institutionalize a permanent Consumer Tribunal structure
Prospective Application and Relief Categorization
The Court carefully categorized affected individuals and their rights in a matrix of 7 scenarios, granting prospective application to the decision but preserving legitimate expectations and vested rights in select categories.
“For all those appointments allowed to continue, tenure shall be 4 years, and they shall not claim a five-year term retrospectively.”
“Reviving a repealed rule is like injecting life into a dead body”—Court Discards Attempt to Rely on Old Rules
Notable Directions Under Article 142
Union of India to notify new Rules incorporating:
5-year tenure
Judicial majority in Selection Committees
Written exams only for Non-Judicial Members
Appointments through State Public Service Commissions
Existing appointees (Maharashtra and other States) to complete their tenure
Reappointment seekers to be considered only under new Rules, with:
No written test for judicial category
Written test mandatory for non-judicial category
Reinstatement of Telangana candidates whose appointments were set aside incorrectly.
The Supreme Court’s judgment is a landmark charter for consumer justice. It firmly re-establishes that consumer fora are constitutional adjudicatory bodies, not administrative conveniences. The Court’s insistence on permanent structures, judicial oversight, and procedural fairness reaffirms its role as constitutional sentinel, guarding the spirit of equality and participatory governance.
With this judgment, the State’s accountability in consumer justice stands recalibrated, and the citizen-consumer is firmly placed at the heart of India’s democratic, economic, and legal matrix.
Date of Decision: May 21, 2025
