Cases on Consumer Protection Act

1. Any person who use goods with approval oI the buyer is a consumer.

Eg: A purchased a scooter which was in B`s possession Irom the date oI purchase. B was
using it and taking to the seller Ior repairs and service Irom time to time. The seller never
objected to that. Later on B had a complaint regarding the scooter. He sued the seller. The
seller plead that since B didn`t buy the scooter, he was not a consumer under the act. The
Delhi state commission held that B, the complainant using this with the approval oI A, the
buyer, and thereIore he was consumer under the act.


2. Any person who obtains the goods Ior resale` or commercial purpose`s is not a consumer.

Eg: A jeep was purchased to run it as a taxi. The question was whether the buyer oI the jeep
was a consumer under the act. The Rajasthan State Commission held that to use the jeep as a
taxi with the object to earn proIits was a commercial purpose, and the buyer/user was not a
consumer within the meaning oI the Act.


3. Person buying goods Ior selI-employment is a consumer.

Eg: A has one cloth shop. He starts another business oI a photocopier and buys a photocopy
machine thereIore. He hasn`t bought this machine exclusively Ior the purpose oI earning
livelihood. He is a consumer under the act.


4. Consumer oI Services

A) Services are hired or availed oI:
Eg: A go to a doctor to get himselI treated Ior a Iracture. Here A is hiring services oI doctor.
Thus he a consumer.

B) Services are rendered Ior consideration(paid or payable)
Eg: B issued an advertisement that a person could enter the contest by booking a Premier
Padmini Car. S purchased the car and thus entered the contest. He was declared as winner oI
the draw and was thus entitled to the two tickets Irom New Delhi to New York and back. S
Iiled a complaint alleging that the ticket was not delivered to him. The National Commission
held that S was not a consumer in this contest. He paid Ior the car and got it. B was not liable
so Iar as the contract oI winning a lottery was concerned.


5. Time Irame within which a complaint can be Iiled.

Eg: A deposited some jewellery with a bank. Bank lost it. Bank kept giving her Ialse sense oI
hope to retrieve the jewellery, and thsu A was put in a state oI inaction. Later on when A Iiled
a suit on the Bank, it claimed that the suit was not maintainable as the limitation time aIter the
cause oI action has lapsed. The Commission reprimanded the bank and admitted the case.


6. When a complaint can be Iiled.

A) A complaint on behalI oI the public which consists oI unidentiIiable consumers cannot be
Iiled under the Act.
Eg: A complaint was Iiled on the basis oI a newspaper report that passengers travelling by
Ilight no. 1C-401 Irom Kolkata to Delhi on May 13, 1989 were made to stay at the airport and
the Ilight was delayed by 90minutes causing great inconvenience to the passengers. It was
held that such a general complaint cannot be entertained. No passenger who boarded that
plane came Iorward or authorized the complainant to make the complaint.

B) A complaint aIter expiry oI limitation period is not permitted. A complaint cannot be Iiled
aIter the lapse aIter two years Irom the date on which the cause oI action arise unless the
Forum is satisIied about the genuineness oI the reason Ior not Iiling complaint within the
prescribed time.

Eg: A supplied deIective machinery to B on 12-01-1998. B Iiled a suit against A on 10-03-
2002. It was not admitted beIore the Forum Ior the reason that the time available to make
complaint lapsed.



7. DeIect Section 2(1)(I) oI the act provides that deIect` means any Iault, imperIection or
shortcoming in the quality, quantity, potency, purity, standard which is required to be
maintained by or under any law Ior the time being in Iorce under any contract, express or
implied or as is claimed by the trader in any manner whatsoever in relation to any goods.

This is an exhaustive deIinition. It means that the act recognizes only those deIects which are
covered by the deIinition. Any type oI deIect not mentioned here will not be entertained by
the Consumer Forums. Moreover the deIect has to be in relation to goods only, i.e., iI an item
doesn`t Iall within the deIinition oI goods`, no deIect can be complained therein. However,
the coverage oI this deIinition is very wide.

Eg: A supplied white marble to B. Later on the color oI the marble changed. B used A
alleging supply oI deIective marble. It was held that A should`ve expressly told B that the
marble would not retain its color when polished. In the absence oI such assertion, it is deemed
that A made B to understand that the marble would retain its white color and when the color
changed, it comes within the scope oI deIect` in goods under the Act.



8. What is meant by deIiciency` in service section 2(1)(g) oI the Act provides that,
deIiciency` means any Iault, imperIection, shortcoming or inadequacy in the quality, nature
and manner oI perIormance which is required to be maintained by or under any law Ior the
time being in Iorce or has been undertaken to be perIormed by a person in pursuance oI a
contract or otherwise in relation to any service.

Eg: A contracted with B to supply, erect and commission cold rolling mill. In terms oI
contract, B was to pay Rs. 36 lakhs Ior the mill, and 4 lakhs Ior system engineering,
designing, erection and commissioning oI the mill. A supplied the mill, but Iailed to erect and
commission the mill. B paid Rs. 34 lakhs Ior the mills supplied. And Iiled a suit alleging
deIiciency oI service on A`s Iailure to erect and commission mill. The National Commission
observed that the deIiciency must pertain to perIormance oI service. Since the mill was not
erected and commissioned, the question oI perIormance didn`t arise. Thus the case is not that
oI deIiciency oI service.