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Consumer Disputes Redressal Commissions under the Consumer Protection Act, 2019

Updated 11 October 2026 · Fact-checked

The Consumer Protection Act, 2019 sets up three tiers of Consumer Disputes Redressal Commissions: District, State and National. Which one hears a complaint depends on the value of goods or services paid as consideration: up to ₹1 crore, above ₹1 crore up to ₹10 crore, and above ₹10 crore. Appeals move upward. Each tier has a mediation cell.

Understand Consumer Disputes Redressal Commissions

A consumer who has a grievance against a bank or insurer does not go to a civil court first. The Act gives a three-tier, quasi-judicial system. You must know which tier hears what, and how a case travels between tiers.

The District Commission is set up by the State Government in each district (Section 28). It has a President and at least two members. A State may set up more than one in a district. The State Commission is set up by the State Government in the State (Section 42). It has a President and at least four members. The National Commission is set up by the Central Government and ordinarily sits in the National Capital Region (Section 53). Regional Benches can be set up.

Jurisdiction is mainly pecuniary. It is measured by the value of the goods or services paid as consideration, not by the amount of compensation claimed. The State Commission handles complaints above ₹1 crore up to ₹10 crore (Section 47). The National Commission handles complaints above ₹10 crore (Section 58). The District Commission handles the rest, that is, complaints up to ₹1 crore. The District Commission's own pecuniary limit is not in the text supplied, so state it from the Act's scheme without a section number. The Central Government may prescribe other values.

The upper tiers are also appellate. The State Commission hears appeals against District Commission orders within the State. The National Commission hears appeals against State Commission orders and against orders of the Central Authority. Both can call for records and correct a lower body that has exercised a jurisdiction not vested in it, failed to exercise one that is vested, or acted illegally or with material irregularity.

Each Commission has a consumer mediation cell attached to it (Section 74). It keeps a list of empanelled mediators, a list of cases handled, and records of proceedings, and sends a quarterly report to its Commission. Administrative control runs downward: the National Commission over State Commissions, and the State Commission over District Commissions (Section 70), without interfering with quasi-judicial freedom. For banking, a deficiency in service by a bank, such as wrongful debit or delay in a claim, is taken to the Commission that matches the consideration paid.

Key rules to remember

District Commission pecuniary limit: Consideration paid up to ₹1 crore → District Commission; Follows from the tier above starting above ₹1 crore. Do not quote a section number for this limit unless you are certain of it.
State Commission original jurisdiction: Consideration paid > ₹1 crore and ≤ ₹10 crore → State Commission (Section 47(1)(a)(i)); Lower limit is exclusive, upper limit is inclusive. The Central Government may prescribe another value.
National Commission original jurisdiction: Consideration paid > ₹10 crore → National Commission (Section 58(1)(a)(i)); Measured by consideration paid, not compensation claimed.
Unfair contracts: State: consideration ≤ ₹10 crore (Section 47(1)(a)(ii)); National: consideration > ₹10 crore (Section 58(1)(a)(ii)); Applies to complaints against unfair contracts.
Appeals: District → State (Section 47(1)(a)(iii)); State → National (Section 58(1)(a)(iii)); Central Authority → National (Section 58(1)(a)(iv)); Quote the appeal route in every answer.
Composition: District: President + at least 2 members (Section 28); State: President + at least 4 members (Section 42); Upper limit of members is as prescribed with the Central Government.
Where to file before the State Commission: Opposite party's residence, business, branch or workplace; or cause of action (wholly or in part); or complainant's residence or workplace (Section 47(4)); If only some of several opposite parties are within the area, the State Commission's permission is needed.
Mediation cell: Every cell keeps: empanelled mediators, cases handled, record of proceedings, other information specified; quarterly report to its Commission (Section 74); State Government sets up cells for District and State Commissions; Central Government for the National Commission and its Benches.
Bench difference of opinion: Majority decides; if equally divided, refer to the President. Opinion on the point within 1 month (State, Section 47(3)) or 2 months (National, Section 58(3)); Do not mix up the two time limits.

How to solve Consumer Disputes Redressal Commissions questions

Use this order for any problem or theory question on the Commissions.

1Identify the dispute: is it a deficiency in a banking or insurance service, an unfair contract, or an appeal or revision?
2Find the value of the services paid as consideration. Ignore the compensation claimed.
3Match the value to the tier: up to ₹1 crore District, above ₹1 crore up to ₹10 crore State, above ₹10 crore National.
4If it is an appeal, name the forum: District order to State, State order to National, Central Authority order to National.
5Check territorial rules: where the opposite party works or has a branch, where the cause of action arose, or where the complainant resides or works.
6Mention the mediation cell as an option attached to the Commission, and the Commission's revisional power if jurisdiction was wrongly exercised.
7Write the conclusion with the section numbers you are sure of.

Quickest way: Three-line tier check

When to use it: Short facts-based questions where you only need to name the correct forum.

Write the consideration paid and the two cut-offs: ₹1 crore and ₹10 crore.
Place the figure: at or below ₹1 crore, District; above ₹1 crore up to and including ₹10 crore, State; above ₹10 crore, National.
If an order is being challenged, move one tier up and cite the appeal clause.

Common mistakes in Consumer Disputes Redressal Commissions

Using the compensation claimed to decide the forum.
Students read the claim amount in the facts as the relevant value.
Fix: Use the value of the goods or services paid as consideration, as the sections say.
Treating ₹10 crore as the National Commission's floor.
Boundary values are read loosely.
Fix: The National Commission hears complaints where consideration exceeds ₹10 crore. Exactly ₹10 crore goes to the State Commission.
Sending a State Commission order to the District Commission or the Supreme Court as the first appeal.
Confusion about the ladder of appeal.
Fix: Appeals from the State Commission lie to the National Commission under Section 58(1)(a)(iii).
Mixing the time limits for referring a split opinion.
Sections 47(3) and 58(3) are almost identical.
Fix: Remember one month for the State Commission and two months for the National Commission.
Saying a State must have only one District Commission per district.
Students skip the proviso.
Fix: Section 28 allows the State Government to set up more than one District Commission in a district.
Forgetting territorial jurisdiction and the mediation cell in a case answer.
Students stop after naming the tier.
Fix: Add a line on where to file and mention that the mediation cell attached to the Commission can be used.

Worked examples

Example 1

Rohit Sharma paid ₹4,50,00,000 to a private bank for a structured financial service and alleges deficiency in service. The bank's branch is in Pune. Before which Commission can he file the complaint, and where can an adverse order be challenged?

Show the solution

The relevant value is the consideration paid: ₹4,50,00,000, which is ₹4.5 crore.
₹4.5 crore is more than ₹1 crore and not more than ₹10 crore, so the State Commission has original jurisdiction under Section 47(1)(a)(i).
Territorially, he may file where the opposite party carries on business or has a branch, where the cause of action arises, or where he resides or works (Section 47(4)).
An order of the State Commission can be appealed to the National Commission under Section 58(1)(a)(iii).

Answer: The complaint lies before the State Commission, filed in the State in which the bank has a branch or business, the cause of action arose, or he resides or works. An appeal against its order lies to the National Commission.

Example 2

A District Commission in a State rejects a bank customer's complaint on the ground that it has no jurisdiction, although the value is within its limit. The customer believes the Commission has failed to exercise a jurisdiction vested in it. What remedies exist, and what is the role of mediation?

Show the solution

The customer can appeal against the District Commission's order to the State Commission under Section 47(1)(a)(iii).
Separately, under Section 47(1)(b), the State Commission may call for the records of a case decided by a District Commission in the State.
It can pass appropriate orders if the District Commission exercised a jurisdiction not vested in it, failed to exercise a jurisdiction vested in it, or acted illegally or with material irregularity.
Here the District Commission failed to exercise a jurisdiction vested in it, which is a ground in Section 47(1)(b).
Mediation: each District and State Commission has an attached consumer mediation cell under Section 74, with empanelled mediators. The parties can use it to settle the dispute.

Answer: The customer can appeal to the State Commission, which may also call for the records and pass appropriate orders because the District Commission failed to exercise a jurisdiction vested in it. The parties may also try settlement through the consumer mediation cell attached to the Commission.

Exam tips

Always state the three pecuniary bands and the appeal ladder in the first few lines. Examiners look for them.
Quote section numbers only for what you are sure of: 28, 42, 47, 53, 58, 70 and 74 are safe for the points above.
In case-based questions, follow provision, analysis of the facts and conclusion. Use the facts to compute the consideration paid.
Add practical points: the territorial choice of forum and the use of the mediation cell show application, not just recall.
If the question mentions product liability, cover it only to the extent you have studied from the ICSI material; this page does not state its section details.

Practice questions from Consumer Protection

Consumer Disputes Redressal Commissions in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ExecutiveConsumer Disputes Redressal Commissions and Jurisdiction

Consumer Disputes Redressal Commissions: frequently asked questions

What is the pecuniary jurisdiction of the District, State and National Commissions?

It is based on the value of goods or services paid as consideration. The State Commission hears complaints above ₹1 crore up to ₹10 crore, and the National Commission hears those above ₹10 crore. The District Commission hears complaints up to ₹1 crore. The Central Government may prescribe other values.

Is jurisdiction based on the consideration paid or the compensation claimed?

On the consideration paid for the goods or services. The sections on jurisdiction use that test. The claim amount does not decide the forum.

Where can an appeal against a State Commission order be filed?

Before the National Commission under Section 58(1)(a)(iii). Appeals against District Commission orders go to the State Commission under Section 47(1)(a)(iii).

What is the consumer mediation cell?

It is a body attached to each District Commission, State Commission, the National Commission and its regional Benches under Section 74. It maintains a list of empanelled mediators, a list of cases handled and records of proceedings, and sends quarterly reports to its Commission.

Can a consumer file a complaint where they live, even if the bank is elsewhere?

Yes. Section 47(4) lets a complaint be instituted where the complainant resides or personally works for gain, among other grounds. The text supplied sets this out for the State Commission, so cite it with that context.