A consumer purchased a washing machine for ₹1,20,000. After 3 years, the machine ruptures, causing ₹3,50,000 damage to the kitchen. The consumer demands compensation equal to twice the actual loss. The State Consumer Disputes Redressal Commission has jurisdiction up to ₹1 crore. What is the compensation payable? Additionally, list at least two powers the State Commission can exercise to enforce its orders and give an example of how one power may be applied.
Answer
₹7 lakh
The correct answer is ₹7 lakh — Example of power 1: The Commission orders the seller to pay ₹7 lakh within 30 days, and if the seller fails, the Commission may issue a monetary penalty or direct the seller to pay the amount out of the proceeds from sale of seized goods.
Step-by-step solution
- Determine actual loss: ₹3,50,000.
- Double the loss as per the consumer’s claim: 3,50,000 × 2 = 7,00,000.
- Check jurisdiction limit: ₹7,00,000 < ₹1 crore, so the claim is within limits.
- Therefore, the compensation payable is ₹7 lakh.
- List of powers: 1. Direct the seller to pay the compensation; 2. Seize or confiscate the seller’s goods or property to satisfy the order.
- Example of power 1: The Commission orders the seller to pay ₹7 lakh within 30 days, and if the seller fails, the Commission may issue a monetary penalty or direct the seller to pay the amount out of the proceeds from sale of seized goods.
Common mistake: Miscalculating actual loss or ignoring jurisdiction ceiling
Concept tested: State Commission powers and jurisdiction
Published · How this solution was prepared and checked
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