Case Note & Summary
The appellant, a company incorporated under the Companies Act, filed a consumer complaint before the State Consumer Disputes Redressal Commission, Delhi, against Respondents regarding the purchase of software. The State Commission, by order dated 19.08.2019, held the complaint not maintainable as the appellant was not a 'consumer' under Section 2(1)(d) of the Consumer Protection Act, 1986. The appellant appealed to the National Consumer Disputes Redressal Commission (NCDRC), which dismissed the appeal on 15.06.2020, affirming the State Commission's order. The Supreme Court considered the issue of whether the appellant qualified as a 'consumer' under the Act. The court noted that the software was purchased for business expansion, which is a commercial purpose, and thus the appellant was not a 'consumer' as defined. The court upheld the decisions of the lower forums and dismissed the appeal.
Headnote
A) Consumer Protection - Definition of Consumer - Commercial Purpose - Section 2(1)(d) of the Consumer Protection Act, 1986 - The appellant company purchased software for business expansion, which constitutes a commercial purpose, thus excluding it from the definition of 'consumer' under the Act. The court held that the purchase was not for self-employment but for profit generation, and therefore the complaint was not maintainable. (Paras 1-4)
Issue of Consideration
Whether the appellant, a company, qualifies as a 'consumer' under Section 2(1)(d) of the Consumer Protection Act, 1986, in respect of goods purchased/services availed for business expansion.
Final Decision
Appeal dismissed; orders of State Commission and NCDRC upheld
Law Points
- Consumer Protection Act
- 1986
- Section 2(1)(d)
- Commercial Purpose
- Consumer
- Software Purchase
- Company
