Case laws relating consumer and deficiency in service

Section 2(7) consumer" means any person who—

(i) buys any goods for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and includes any user of such goods other
than the person who buys such goods for consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment, when such use is made with the approval
of such person, but does not include a person who obtains such goods for resale or for any
commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes any
beneficiary of such service other than the person who hires or avails of the services for
consideration paid or promised, or partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the approval of the first mentioned
person, but does not include a person who avails of such service for any commercial purpose.

Explanation.—For the purposes of this clause,—

(a) the expression "commercial purpose" does not include use by a person of goods bought and
used by him exclusively for the purpose of earning his livelihood, by means of self-employment;
(b) the expressions "buys any goods" and "hires or avails any services" includes offline or online
transactions through electronic means or by teleshopping or direct selling or multi-level
marketing;

Thus, if any person:

Either (i) buys a goods for any consideration or
(ii) Hires or avails of any services for a consideration, he is a consumer.

Case laws:
• Bihar School Examination Board v. Suresh Prasad Sinha AIR 2010 SC 93.
• Regional provident fund commissioner v. Bhavani AIR 2008 SC 2957.
• Anant Raj Agencies v. TELCO I (1996) C.P.J 268 (Delhi).
• Sterling Computer Ltd. v. P.R Kutty I (1996) C.P.J 118 (N.C).

Case laws for Hirer of services for consideration:

 • Sujit Kumar Banerjee v. m/S Ramesh Wasan AIR 2009 S.C 1188.
• Union of India v. Mrs. S. Prakash 1991 (1) C.P.R 307.

Deficiency of service:
Section 2(42) "service" means service of any description which is made available to potential
users and includes, but not limited to, the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other energy, telecom,
boarding or lodging or both, housing construction, entertainment, amusement or the purveying
of news or other information, but does not include the rendering of any service free of charge
or under a contract of personal service;

Telephone:

⮚ Telephones, Jalandar v. Om Prakash III (1996) C.P.J 479 (Punjab).

⮚ Mahanagar Telephone Nigam v. Vinod Karkare II (1991) C.P.J 655.

⮚ Dist. Engineer telecom., Sriganganagar v. Dr. Tej Narain Sharma III (1995) C.P.J 225.

2. Railways:

⮚ Union of India v. Ashok Kumar Singh III (1995) C.P.J 146.

⮚ Anil Gupta v. General Manager, northern railways II (1991) C.P.J 308.

⮚ Union of India v. Nathmal Hansaria I (1997) C.P.J.

⮚ South eastern Railway v. Yeshwant Tiwari (2003) IV C.P.J 39.

3. Airlines:

⮚ Satish Bagdoria v. airdot International III (1996) C.P.J 96.

⮚ Chief commercial officer, Indian Airlines v. P. Lalchand III (1995) C.P.J 134.

⮚ Indian airlines v. Shri Rajesh Kumar Upadhyay I (1991) C.P.J 206.

 ⮚ Bhupinder Singh v. Air India I (1996) C.P.J 344.

4. Electricity:

⮚ H.S.E.B v. Naresh Kumar II (1996) C.P.J 306.

⮚ Gita Rani Chakroborty v. S.S.B, W.B.S.E.B I (1997) C.P.J 450.

5. Insurance:

⮚ United India Insurance Co. Ltd. v. M/s. Kiran Combers & Spinners AIR 2007 S.C 393.

⮚ National Ins. Co. v. Pavan P. Sahni II (1997) C.P.J 3 (N.C.).

6. Bank:

⮚ catholic Syrian Bank v. Saju Mathew III (1995) C.P.J 137.

⮚ Federal Bank, Bistupur, Jameshedpur v. Shri Bijon Mishra I (1991) C.P.J 16.

⮚ Sankar v. B.M, Vijaya Bank I (1996) C.P.J 137.

⮚ Harjivandas v. Manager, dena Bank II (1997) C.P.J 186.

⮚ Manager, UCO Bank v. S.C Mohanty (1996) C.P.J 259.