• Pecuniary Jurisdiction in view of the law laid down in CC/97/2016

Dear Sir/Madam,

I filed a case in State Consumer Court on the month of 23rd September 2016 against the builder to refund the money which includes 15% compound interest, reason being extensive delay. In my claim cost of flat and interest exceeds Rs1cr.

The builder's lawyer has prayed to the court for dismissal of the present consumer complaint in view of the law laid down in Ambrish Kumar Shukla vs Ferrous infrastructure Private limited in CC/97/2016 decided on 07.10.2016 by a three Member Bench of Hon'ble National Commission.
That admittedly as the value of the apartment in question along with compensation claimed is well beyond Rs 100,00,000 as interest has been claimed @ 15 compounded from the date of respective deposit starting from 3rd March, 2008 and it exceeds the pecuniary jurisdiction of this Hon'ble commission so present complaint is liable to be dismissed.

I will like to know since I submitted my application in State Consumer court before change in law and if so will the above change in law, be applicable in my case? And what are my best options?
If the Hon’ble court dismisses my application on grounds of change in law even though I submitted the application before the law was changed then do I have to go NCDRC and submit fresh application? And go through the whole process again delaying everything please can you advice me what is your opinion on this. The judgement is due but I need to be prepared.
Asked 7 years ago in Property Law
Religion: Other

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6 Answers

1) you can with draw your application with liberty to file fresh complaint freeborn national commission

2) since reliefs claimed do not fall within pecuniary jurisdiction of state commission complaint has to be filed before national commission

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

1. The decisions operates prospectively though it will apply to all the cases when the said issue is not decided as yet.

2. Since it exceeds the pecuniary jurisdiction of state commission you can seek return of the complaint so the same can be filed beofre the national commission.

3. I do not think you can avoid non -availability of the case.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

if the judgement is to be applied prospectively then complaints filed after 7/10/2016 will have to be returned to be filed before the NCDRC, if the judgement is applicable retrospectively then your complaint will have to be returned back to be filed before NCDRC.

If you have a soft copy of the judgement referred to by you, show it to your advocate who can then decide the appropriate course of action in so far as your complaint is concerned.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0


Probably the wordings of your prayer would have enabled your lawyer to file the petition in state commission when your claim for refund (cost of flat+15% Compounded Interest w.e.f March 2008) was in excess of 1 Crore and the same being admitted by the state commission. In all likelihood, your lawyer must have shown cost of flat as a separate line item and compensation claim as separate line item in prayer and thereby got the petition admitted state commission.

The Ambrish Kumar Shukla Vs Ferrous Infrastructure judgment does not change the law as far as pecuniary jurisdiction is concerned. It only reiterates that under section 21 of the Consumer Protection Act, If the aggregate of the value of the goods purchased or the services hired or availed of by a consumer, when added to the compensation, if any, claimed in the complaint by him, exceeds Rs. 1.00 crore, it is this NCDRC alone which would have the pecuniary jurisdiction to entertain the complaint.

So prior to judgment,

a) you can ask your lawyer to either withdraw the petition and file a fresh petition at NCDRC (At NCDRC, the process is quite faster compared to state commission and in the event of the builder aggrieved by NCDRC order, the next recourse for builder is only supreme court which the builder in any which way will avoid at all costs) or

b) even in the event of your case being dismissed for want of jurisdiction, it does not mean you have lost the case, but only that you need to file at NCDRC to address your query. Either way it is a win-win situation for you.

(i am surprised by the stand of your opposite lawyer who wants to oust the jurisdiction of state commission when he is well positioned to negotiate with you in state commission where as the Opposite side will suffer huge losses if he comes to NCDRC as NCDRC is headed by Retired Supreme court judges and these judges are very strict and consumer friendly).

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1. Your application will not be rejected on the ground of pecuniary ground since you have filed the application before the change of law.

2. If by any chance your said application is rejected, you can approach the national commission challenging the aid order or file a fresh application before the National Commission.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

If the state commission dismisses the case for wrong jurisdiction then you may file a fresh case before national commission.

If it is returned with advise to file it in appropriate court then you may re-submit the same before the proper court

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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