In a major decision given recently (IV (2012) CPJ 1 (SC)), the Supreme
Court has said that orders given by consumer courts can not be
challenged in High Courts.
The Consumer Protection Act provides a hierarchy of appeals. If
one is not satisfied with the decision of the District Consumer Forum,
one can appeal to the State Consumer Commission. From the State Consumer
Commission, one can appeal to the National Consumer Commission and from
there to the Supreme Court. But many persons not happy with the
decisions of the consumer courts have appealed to High Courts under
Article 226 of the Constitution which empowers High Courts to issue
certiorari orders quashing orders of lower courts. Such appeals were
being accepted by the High Courts, thus short-circuiting the hierarchy
of appeals prescribed by the Consumer Protection Act.
In the case before the Supreme Court, Kerala High Court had
decided on a writ appeal filed against a decision of the National
Consumer Commission. This was challenged before the Supreme Court. In
its judgment, the Supreme Court said, "...we can not help but state in
absolute terms that it is not appropriate for the High Courts to
entertain writ petitions under Article 226 of the Constitution of India
against the orders passed by the Commission, as a statutory appeal is
provided and lies to this Court under the provisions of the Consumer
Protection Act, 1986. Once the legislature has provided for a statutory
appeal to a higher court, it can not be proper exercise of jurisdiction
to permit the parties to bypass the statutory appeals to such higher
court and entertain petitioners in exercise of its powers under Article
226 of the Constitution of India."
Therefore, even though Article 226 of the Constitution gives
High Courts the power to overturn decisions given by consumer courts,
the Supreme Court has stated that when there is provision for statutory
appeals, it is not appropriate for the High Courts to use that power. As
a result, from now on, both parties in a consumer dispute will be
constrained to follow the hierarchical appeal process prescribed by the
Consumer Protection Act.
G.L.Nagaraj Urs, Mysore Grahakara Parishat I