When one buys goods (or even apartments), the terms of sale frequently
impose the condition that any dispute between the seller and the buyer
will be adjudicated only in the courts of Delhi or Mumbai or some other
city where the selling company might have its head office.
If there is a defect with the goods and the seller does not
rectify it, the Consumer Protection Act provides for easy and in
expensive relief. According to Sec. 11 of the Act, a case can be filed
before a District Consumer Forum within whose territorial jurisdiction,
the seller resides or carries on business or has a branch office or
where the cause of action arises.ÿIt is naturally very convenient for
the consumer to file a case in a consumer forum rather than a court in
Delhi or Mumbai. But many consumer fora have dismissed such complaints
as not maintainable since the consumers are bound by the terms of the
contract which compels the case to be heard in Delhi or Mumbai.
But in a recent decision (I(2013) CPJ 31 (NC)), the National
Consumer Commission has come to the rescue of the consumers. It says
that the jurisdiction of the consumer fora are not ousted by terms in
the contract. It agreed that by mentioning any specific condition in the
agreement, one party cannot take the benefit of territorial
jurisdiction of the courts of their choice.
Therefore, if consumers see such restrictive conditions in the
terms of sale, they can disregard them and file cases in the consumer
fora which have territorial jurisdiction.
B.V.Shenoy, Mysore Grahakara Parishat