High Court of Karnataka Quashes Consumer Forum Notice Against Restaurant Company for Lack of Consumer Relationship. Petitioner Company not a 'Consumer' under Section 2(1)(d) of Consumer Protection Act, 1986 as the respondent was not a consumer of its services.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, M/s Vasudeva Adiga's Fast Food Pvt Ltd, a company incorporated under the Companies Act, 1956, running vegetarian restaurants in Bangalore, Mysore and other places, filed a writ petition under Articles 226 and 227 of the Constitution of India. The petition sought to quash a notice dated 12.12.2013 issued under Section 13 of the Consumer Protection Act, 1986 in Complaint No.2672/2013 pending before the I Additional District Consumer Redressal Forum, Bangalore. The petitioner also sought a declaration that the respondent, Mr. T. Murthy @ T. Narasimha Murthy, does not come under the jurisdiction of the Consumer Protection Act, 1986 as he is not a 'consumer' within the meaning of Section 2(1)(d) of the Act. The brief facts are that the petitioner company had entered into a Memorandum of Understanding (MoU) with the respondent. The respondent filed a complaint before the Consumer Forum alleging deficiency in service, and the Forum issued a notice to the petitioner under Section 13 of the Act. The petitioner contended that the respondent was not a consumer as the transaction was for a commercial purpose and the respondent did not hire the services of the petitioner for consideration. The court, after hearing the petitioner's counsel, held that the respondent was not a consumer within the meaning of Section 2(1)(d) of the Act. Consequently, the Consumer Forum had no jurisdiction to entertain the complaint. The court allowed the writ petition, quashed the notice dated 12.12.2013, and declared that the respondent does not come under the jurisdiction of the Consumer Protection Act, 1986.

Headnote

A) Consumer Law - Definition of Consumer - Section 2(1)(d) Consumer Protection Act, 1986 - The respondent filed a complaint before the Consumer Forum alleging deficiency in service by the petitioner company. The court examined whether the respondent was a 'consumer' under the Act. Held that the respondent was not a consumer as the transaction was for a commercial purpose and the respondent did not hire the services of the petitioner for consideration. (Paras 2-4)

B) Consumer Law - Jurisdiction of Consumer Forum - Section 13 Consumer Protection Act, 1986 - The petitioner sought quashing of a notice issued under Section 13 of the Act. The court held that since the respondent was not a consumer, the Consumer Forum lacked jurisdiction to proceed with the complaint. The notice was quashed. (Paras 3-4)

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Issue of Consideration

Whether the respondent, who filed a complaint before the Consumer Forum, is a 'consumer' within the meaning of Section 2(1)(d) of the Consumer Protection Act, 1986, and whether the Consumer Forum has jurisdiction to entertain the complaint.

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Final Decision

The writ petition is allowed. The notice dated 12.12.2013 issued under Section 13 of the Consumer Protection Act, 1986 in Complaint No.2672/2013 on the file of I Additional District Consumer Redressal Forum, Bangalore is quashed. It is declared that the respondent does not come under the jurisdiction of the Consumer Protection Act, 1986.

Law Points

  • Consumer Protection Act
  • 1986
  • Section 2(1)(d)
  • Section 13
  • Jurisdiction of Consumer Forum
  • Definition of Consumer
  • Commercial Purpose
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Case Details

2013 LawText (KAR) (12) 14

Writ Petition No.59155 of 2013 (GM-CON)

2013-12-27

A. N. Venugopala Gowda

Sri Harikrishna S. Holla

M/s Vasudeva Adiga's Fast Food Pvt Ltd

Union of India, Ministry of Consumer Affairs, New Delhi; Mr. T. Murthy @ T. Narasimha Murthy

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging a notice issued under Section 13 of the Consumer Protection Act, 1986 by the Consumer Forum.

Remedy Sought

Quashing of notice dated 12.12.2013 in Complaint No.2672/2013 and declaration that the respondent is not a consumer under the Act.

Filing Reason

The petitioner company received a notice from the Consumer Forum in a complaint filed by the respondent alleging deficiency in service. The petitioner contended that the respondent was not a consumer and the Forum lacked jurisdiction.

Issues

Whether the respondent is a 'consumer' within the meaning of Section 2(1)(d) of the Consumer Protection Act, 1986? Whether the Consumer Forum has jurisdiction to entertain the complaint against the petitioner?

Submissions/Arguments

The petitioner argued that the respondent is not a consumer as the transaction was for a commercial purpose and the respondent did not hire the services of the petitioner for consideration.

Ratio Decidendi

The respondent is not a 'consumer' within the meaning of Section 2(1)(d) of the Consumer Protection Act, 1986, and therefore the Consumer Forum has no jurisdiction to entertain the complaint. The notice issued under Section 13 of the Act is liable to be quashed.

Judgment Excerpts

This writ petition has been filed to quash a notice issued under S.13 of the Consumer Protection Act, 1986 (for short 'the Act') in complaint No.2672/2013 by the I Additional District Consumer Disputes Redressal Forum, Bangalore-560 020 and to declare that the petitioner does not come under the jurisdiction of the Act and for grant of consequential reliefs. Brief facts of the case are the following: Petitioner is a Company incorporated under the Companies Act, 1956, carrying on business in running vegetarian restaurants in Bangalore, Mysore and other places. It has entered into a Memorandum of Understanding (MoU) with the respondent.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging a notice dated 12.12.2013 issued under Section 13 of the Consumer Protection Act, 1986 in Complaint No.2672/2013 pending before the I Additional District Consumer Redressal Forum, Bangalore. The court heard the petitioner's counsel and allowed the petition on 27.12.2013.

Acts & Sections

  • Consumer Protection Act, 1986: Section 2(1)(d), Section 13
  • Companies Act, 1956:
  • Constitution of India: Articles 226, 227
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