The Supreme Court has asked the Union Government to explain how the pecuniary jurisdiction of consumer commissions should operate under the Consumer Protection Act, 2019, particularly where the value of the consideration paid and the compensation claimed may produce different results.
A Bench of Justice K.V. Viswanathan and Justice Arun Palli passed the order on August 13, 2026, in M/S Avon Elastomers (India) v. M/S Bajaj Allianz General Insurance Co. Ltd. & Ors.
The case raises an important question: should the forum with jurisdiction depend on the value of goods or services for which consideration was paid, or on the amount of compensation claimed by the consumer?
Background of the Case
The proceedings arise from a consumer dispute involving an insurance contract. During the hearing, the petitioner's senior counsel pointed to several practical difficulties if jurisdiction is determined only by the consideration paid.
Examples were given of bank fixed deposits and savings accounts, where a consumer may have no separate payment for the relevant service. Similar concerns were raised regarding subsidised medical treatment.
The counsel also referred to situations involving expensive cars or property where the actual grievance may concern only a relatively small defect or service failure.
Court’s Observation
The Bench said these issues required a detailed response from the Union Government. The Court noted that the examples raised were “only illustrative” and wanted the Centre to address how the pecuniary limits would work in practice.
The Court also sought an explanation for the reduction of the National Consumer Commission's pecuniary jurisdiction from ₹10 crore under the 2019 Act to ₹2 crore through the December 30, 2021 notification.
Decision
The Supreme Court directed the Union of India, through the concerned Ministry, to file an affidavit within six weeks addressing the issues raised during the hearing.
The Court clarified that it was examining the interpretation and operation of the provisions concerning pecuniary jurisdiction.
The matter has been listed for October 8, 2026.
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