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CONSUMER THE CONCEPT[1]

QUESTION BANK

1. Define ‘consumer’. What are the rights available to the consumer under Consumer Protection Act.1986?

Q.2. Who is a consumer according to the Consumer Protection Act.1986? What are the changes made in the term by the court decisions?

Q.3. Who is a consumer and who is not a consumer according to the Consumer Protection Act.1986? Substantiate your answer with court decisions.

Q.4. State the various remedies available under the Consumer Protection Act.1986.

SHORT NOTES

Consumer.
Statutory and Government services.

SYNOPSIS

CONSUMER DEFINED (S. 2 (1) (d))
WHO IS THE CONSUMER?

(1) Consumer of Goods:-

(a) Purchaser of goods-

(b) User of such goods-

(2) Consumer of Services:-

(a) Hirer of services-

(b) Beneficiary-

III. WHO IS NOT CONSUMER?

(1) Reseller or commercial purchaser-

(2) Purchaser without consideration.

RIGHTS AVAILABLE TO THE CONSUMER.

NOTE

Statutory and Government Services:-

a) Services provided without consideration-
b) Electricity Board liability:-
c) Telephone Services:-
d) Postal Services:-

I. CONSUMER DEFINED (S.2 (1) (d))-

Consumer means any person who-

buy any goods– for consideration- (which has been paid or promised or –partly paid or partly promised,- or under any system of differed payment)- and
includes any user of such goods (other than the person who buys such goods for consideration paid or promised or partly paid and partly promised or under any system of differed 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 commercial purposes.

Explanation– The word ‘commercial purpose’ used above does not include use by a consumer of goods bought and used by him exclusively to earn his livelihood by means of self-employment.

(ii) (a) hires or avails any services for consideration (which has been paid or promised or partly paid and partly promised or under any system of differed payment) and

(b) includes any beneficiary of such services.

II. WHO IS THE CONSUMER?

(1) Consumer of Goods.

(a) Purchaser of goods-

The term ‘consumer’ is defined in two parts-

First Part – contains consumers who purchase goods or use them,

The second part – refers to a person who hires services.

Thus, the Act covers transactions for the sale of goods and rendering of services in the first instance and the actual purchaser or hirer and user or beneficiary of them.

The definition mentioned above provides that the person who purchases goods for consideration-

which is already paid or promised to be paid, or partly paid and partly promised to be paid, or
under any system of differed payment-

-is a consumer in the first place.

In Lucknow Development Authority V/s. M.K. Gupta [2]

The Supreme Court held that the term ‘consumer’ is a comprehensive expression. It extends to a person who buys any commodity to consume, either as eatables or otherwise, from a shop, business house, corporation, store, or fair-price shop to use for private or public services.

(b) User of such goods-

The definition is not confined to the purchaser of goods only but also covers the user of such goods with the purchaser’s permission. So, in second place, the term consumer also includes the user of the goods, even though he himself is not the buyer.

(c) A person who buys goods to earn his livelihood[3]–

Explanation to S.2 (1) (d) provides that any use by a consumer of the goods he bought and used exclusively to earn his livelihood by means of self-employment is a consumer and not a commercial man. For example, the purchaser of a rickshaw, though using it for commercial purposes, is a consumer because he uses it to earn his livelihood.

(2) Consumer of Services-

(a) Hirer of services[4]–

Another category of consumer contains a person who hires any service for consideration.

In Kannan V/s. Shri S. M. M. Hospital [5]

Held– a patient to whom services are not rendered gratuitously is a consumer.

Services would include all kinds of professional services, be it the routine service of a barber, doctor, advocate, contractor, etc., or any other commercial service.

(b) Beneficiary-

The term consumer also covers anyone who avails the services hired by another, with his approval.

III. WHO IS NOT CONSUMER?

(1) Reseller or commercial purchaser[6]–

The definition of a consumer provides that a person who obtains such goods for resale or for any commercial purpose is not a consumer.

However, it excludes from the ambit of the term ‘commercial purpose’ those who buy the goods to earn money through self-employment.

However, in M/s East India Construction Co. V/s M/s Modern Consultancy Services[7]

Facts– Machine/ equipment used for industrial purposes. A manufacturing defect occurred during the warranty period.

Issue:- Does it become a consumer?

Held: The purchaser would be entitled to file a complaint as a consumer though using goods for commercial purposes.

(2) Purchaser without consideration.

The person who purchases goods or avails services without paying any consideration for them is not a consumer.

In Gordhandas K. Thakkar V/s. Life Insurance Corporation 2008 (1) All M R 19

Facts– The policy has lapsed on the grounds of non-payment.

Held– The Insurance Company is not liable to pay compensation.

IV. RIGHTS AVAILABLE TO THE CONSUMER.

S.6 of the Act, in its object, sought to give the following general rights to the consumer-

the right to be protected against the marketing of goods and services which are hazardous to life and property;
the right to be informed about the quality, quantity, potency, purity, standard, and price of goods or services to protect the consumer against unsafe trade practices.
The right to be assured, whether possible, access to various goods and services at competitive prices.
The right to be heard and assured that the consumer’s interest will receive due consideration at appropriate forums.
the right to seek redressal against unfair trade practices, restrictive trade practices, or unscrupulous exploitation of consumers, and
the right to consumer education.

14 of the Act grants the following particular rights-

To file a complaint in the consumer forum without paying court fees.
To receive goods without defects and services without deficiency.
The Court is to read the provisions of this Act in favour of the consumer.
To remove the defect pointed out by the appropriate laboratory from the
goods in question.
To replace the goods with new goods of a similar description, which shall
be free from any defect.
To return to the complainant the price, or as the case may be, the charges
paid by the complainant.
To pay such amount as may be awarded by it as compensation to the
consumer for any loss or injury suffered by the consumer due to the
negligence of the opposite party.
To remove the deficiencies in the services in question.
To discontinue the unfair trade practice or the restrictive trade practice
(or not to repeat them).
Not to offer hazardous goods for sale.
To withdraw the hazardous goods from being offered for sale.
To get adequate costs paid.

In Hira Construction V/s. Ashok B. Jaipal.

2008 (1) All M R 9

Held—The forum shall impose a cost on false and frivolous complaints. A frivolous complaint means one that lacks any serious purpose or value.

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NOTE

STATUTORY AND GOVERNMENT SERVICES:-

The persons purchasing goods or availing of services provided by the statutory and government authorities are also consumers. No exemptions to the statuary or Government authority is granted by the Consumer Protection Act. However, the requirements abovementioned in the definition of ‘consumer’ must be complied with. Thus, the Government Hospitals, Insurance Companies, Gas providing Companies, Post offices, Telephone departments, etc., are, in several cases, held liable by the consumer court.

a) Services provided without consideration-

In Indian Medical Assn. V/s. V.P. Shantha[8]

Held– Services rendered at a Government Hospital where no charge whatsoever is made from any person availing the services and all patients (rich and poor) are given free service is outside the purview of the Consumer Protection Act. However,

In S. Shrama V/s. The State of U.P. [9]

Facts: – A wife of a person who has undergone a vasectomy operation remained pregnant due to a negligent operation by a doctor.

Held: –that the State is liable. It is because a doctor has not taken reasonable care and caution while performing the operation.

b) Electricity Board liability:-

In several cases, the Electricity Department is held liable for negligent disconnection, overbilling, non-repair, etc.

In Hariyana S.E.B. V/s. T.R. Poultry Farm[10]

Facts—The transformer supplying electricity to the complainant’s poultry farm had burned. However, for the next 25 days, it could not be replaced or repaired; consequently, the poultry farm’s electricity remained unsupplied. In consequence, 3080 birds from the poultry farm died.

The Court held that compensation of Rs. 75000 was allowed.

c) Telephone Services:-

In several cases, the Electricity Department is held liable for negligent disconnection, overbilling, non-repairs, etc.

In Union of India V/s. Nilesh Agrawal[11]

The State Commission held that the complainant, a subscriber, is a ‘consumer’ and the telephone service provided by the Telecom Department is a ‘service’ for which he pays rent. Hence, overbilling the telephone is a ‘deficiency in service. ‘

d) Postal Services:-

In several cases, the Postal Department is held liable for the non-delivery of letters, non-delivery of speed post articles, non-payment of the amount of National Saving Certificates, etc.

In Sub-Post Master, Rewari V/s. Vinod Kumar Saxena[12]

Facts—The complainant sent a Rs. 400 money order, which was misdelivered to someone other than the addressee. The appellant contended that under S. 48 of the Indian Post Office Act.1898, an exemption was granted from any suit or legal proceedings in respect of the wrong payment of a money order caused by incorrect or incomplete information given by the remitter as to the name and address of the payee.

State Commission held the Post Department liable.

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[1] ग्राहक संकल्पना [ग्राहक अवधारणा]

[2] 1994 SCC 243

[3] चरितार्थासाठी वस्तु खरेदी करणारा व्यक्ती [ एक व्यक्ति जो दान के लिए चीजें खरीदता है]

[4] भाडयाने सेवा घेणारा [काम पर रखा ]

[5] 2002 CPR 186

[6] पुर्नविक्रेता अथवा व्यवसायासाठी खरेदी करणारा [व्यवसाय के लिए पुनर्विक्रेता या खरीदार]

[7] (AIR 2006 (NOC) 1238)

[8] III (1995) C.P.J. 1

[9] AIR 2000 All 219

[10] II (1996) C.P.J. 15 (N.C)

[11] (1991) 1 CPR 23

[12] (1996)I CPR 444