All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

Practice Mode:
87.

Under Consumer Protection Act, the jurisdiction of the District Forum should not exceed rupees

A: Fifty Thousands
B: Twenty Five Thousands
C: One lakh
D: Twenty lakhs

The answer is: D

Explanation

The correct option is D: Twenty lakhs.

This is because according to Section 11(1) of the Consumer Protection Act, 1986, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed does not exceed rupees twenty lakhs. This means that if the total amount involved in a consumer dispute is more than twenty lakhs, then the complaint cannot be filed in the District Forum, but has to be filed in the State Commission or the National Commission, depending on the amount. The Consumer Protection Act, 1986 was replaced by the Consumer Protection Act, 2019, which came into force on 20th July, 2020. The new Act increased the pecuniary jurisdiction of the District Forum to rupees one crore. Therefore, option D is correct only if the question refers to the old Act, and not the new Act. If the question refers to the new Act, then none of the options are correct, and the answer should be one crore.