New Delhi: Eighteen years after the Parliament enacted the Consumer Protection Act, the Supreme Court has asked consumer courts to interpret the legislation rationally and in a manner that is consistent with its purpose rather than technicalities.

A Division Bench of Justice Shivraj V Patil and Justice D M Dharmadhikari said, "The Act is one of the benevolent pieces of legislations intended to protect a large body of consumers from exploitation.

"The provisions of the Act ought to be interpreted in a rational manner for achieving the objective set forth in the Act," it said.

The Bench set aside an order of the National Consumer Disputes Redressal Commission that had upheld a judgment of the Karnataka State Consumer Disputes Redressal Commission reducing the compensation awarded by a District Consumer Forum to a farmer who was supplied defective paddy seeds.

The apex Court restored the order of the District Forum, which had awarded a compensation of Rs 17,500 to the farmer.

"The importance of the Act (lies in) promoting welfare of the society by enabling the consumers to directly participate in the market economy," the Court observed.

Various legislations and regulations permitting the State to intervene and protect interest of the consumers had become a haven for unscrupulous people as the enforcement machinery either did not move or it moved ineffectively and inefficiently, the Court noted.