The Supreme Court has clarified that courts have both the power and duty to direct the executive branch of the government to review the working of statutes and conduct performance audits, especially when the purpose of a law is not being fulfilled. The Court emphasized that such evaluations are an essential part of the Rule of Law.
"Reviewing and assessing the implementation of a statute is an integral part of Rule of Law," the Court noted.
Read Also:- Supreme Court Dismisses Petitions Against 1982 J&K Return Law Due to Non-Enforcement and Repeal in 2019
This significant observation came from a Bench consisting of Justice PS Narasimha and Justice Joymalya Bagchi while deciding a challenge to certain provisions of the Consumer Protection Act, 2019. The challenge questioned how pecuniary jurisdiction of consumer commissions was determined based on the value of consideration instead of the amount of compensation claimed. The Court ultimately dismissed the challenge.
During the case, the argument was made that the Consumer Protection Act, 2019 was not achieving its intended goals. In response, the Court referred to the importance of legislative performance review and stated:
“The purpose of such review is to ensure that a law is working out in practice as it was intended. If not, to understand the reason and address it quickly.”
Read Also:- Supreme Court: Stamp Vendors Performing Public Duty Are Public Servants Under Corruption Law
The Court cited its earlier ruling in Yash Developers v. Harihar Krupa Co-operative Housing Society Ltd (2024) to support this perspective. It held that it is the executive government's implied duty to assess if a law’s objectives are being met.
Furthermore, the Court explained that judicial intervention becomes necessary when statutory schemes get trapped in bureaucratic or judicial delays, defeating their purpose. While the judiciary can facilitate audits and suggest amendments, it cannot compel legislative reforms.
"The judicial role does encompass, in this Court's understanding, the power, nay the duty to direct the executive branch to review the working of statutes and audit the statutory impact."
The Court added that India’s lawmaking process is mostly government-driven, with private member bills being rare. In such a context, the judiciary must step in when laws fail to deliver due to administrative inefficiencies or outdated frameworks.
Read Also:- Supreme Court Upholds High Court's View on Limitation in Election Petition under RP Act
"This facilitative role of the judiciary compels audit of the legislation, promotes debate and discussion but does not and cannot compel legislative reforms."
Regarding the Consumer Protection Act, 2019, the Court also pointed out the role of statutory bodies like the Central Consumer Protection Council and Central Consumer Protection Authority, which are mandated to guide the Government on effective implementation.
"If these institutions and bodies work effectively and efficiently, it is but natural that the purpose and object of the legislation will be achieved in a substantial measure," the Court said.
It stressed that these bodies must operate with administrative efficiency, expert composition, integrity in staffing, transparency, and accountability. Regular reviews, audits, and assessments are vital for ensuring the law serves consumers properly.
Finally, the Court issued a directive that both the Central Consumer Protection Council and the Authority must, under Sections 3, 5, 10, 18 to 22 of the Act, take all necessary measures to survey, review, and advise the Government for better redressal mechanisms and more effective working of the Act.
Case Title: Rutu Mihir Panchal and others vs Union of India and others, WP(C) 282/2021
