Case Note & Summary
The appeal by special leave arose from a consumer complaint filed by Punjab Water Supply and Sewage Board before the State Consumer Disputes Redressal Commission, U.T. Chandigarh, alleging deficiency in service against M/s. Udaipur Cement Works in relation to supply of cement. The Board had placed confirmed orders for 2500 M.T. cement and remitted Rs.23,62,900/- to the cement works via three bank drafts. As per the confirmed order, cement was to be supplied on or before 7.3.1988. However, the goods were delivered only in November 1990 and at a higher rate instead of the originally agreed rate. The State Commission allowed the complaint and awarded 12% interest to the Board for the period during which the deposit amount remained with the cement works. The National Consumer Disputes Redressal Commission reversed that order and dismissed the complaint, holding that the transaction was one of sale and purchase simpliciter with no arrangement of hiring of service, and therefore no deficiency in service could arise. The Board appealed to the Supreme Court. The core legal issue was whether a sale and purchase transaction simpliciter can involve deficiency in service under the Consumer Protection Act, 1986, and whether the National Commission erred in dismissing the complaint without examining the pleadings in light of the Act's provisions. Before the National Commission, counsel for the cement works had argued that absence of hiring of service excluded the Consumer Forum's jurisdiction. Before the Supreme Court, learned counsel for the parties referred to Section 2(c), (d), (f), (g), (o) and various other provisions of the Act to demonstrate that the blanket exclusion was incorrect. The Supreme Court held that the National Commission's blanket observation was mechanical and should not have been made. The Court stated that the National Commission should have appreciated the pleadings in light of the various provisions of the Consumer Protection Act, 1986, which define terms like complaint, consumer, defect, deficiency, and service. The Court did not decide the merits but found the reasoning insufficient. The Supreme Court allowed the appeal, set aside the impugned order of the National Commission, and remanded the case to the National Commission to hear the appeal afresh after affording opportunity to both parties. The parties were permitted to raise relevant questions of law and fact. No costs were awarded.
Headnote
A) Consumer Law - Deficiency in Service - Sale and Purchase Simpliciter - Consumer Protection Act, 1986, Sections 2(c), 2(d), 2(f), 2(g), 2(o) - The National Commission dismissed a complaint alleging delayed cement supply at higher rate by holding that sale and purchase simpliciter involved no hiring of service and hence no deficiency in service; the Supreme Court deprecated this blanket observation as mechanical and held that the National Commission should have appreciated the pleadings in light of the Act's provisions; the Court set aside the National Commission's order and remanded the appeal for fresh consideration after affording opportunity to parties, allowing them to raise relevant questions of law and fact (Paras 1-4).
Issue of Consideration
Whether a transaction of sale and purchase simpliciter can involve deficiency in service under the Consumer Protection Act, 1986; whether the National Commission erred in dismissing the complaint solely on that ground without examining the pleadings in light of the Act's provisions
Final Decision
Appeal allowed; impugned order of the National Commission set aside; case remanded to the National Commission to hear the appeal afresh after affording opportunity to the parties; parties may raise relevant questions of law and fact; no costs
Law Points
- A sale and purchase transaction simpliciter does not automatically exclude deficiency in service under the Consumer Protection Act
- 1986
- National Commission should appreciate pleadings in light of Act's provisions
- blanket observation that no deficiency in service can arise in sale and purchase simpliciter is mechanical and unwarranted
