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1999 Supreme(SC) 1199

1999(9) Supreme 134
SUPREME COURT OF INDIA
(From National Consumer Disputes Redressal Commission, New Delhi)
S. Saghir Ahmad & R.P. Sethi, JJ.
Kalpavruksha Charitable Trust -Appellant
versus
Toshniwal Brothers (Bombay) Pvt. Ltd. & Anr. -Respondents
Interlocutory Application No. 2
In
Civil Appeal No. 9737 of 1996
Decided on 12-10-1999
Counsel for the Parties :
For the Appellant : S.P. Mithal, R.N. Keswani, Ms. Chandrakanta Nayak, Ramlal Roy, Advocates.
For the Respondents : S.C. Agrawala, Sr. Advocate, Ms. Nina Gupta, Ms. Arpita R. Choudhary, Sanjay Choudhary, Vineet Kumar, Advocates.

Headnote:Consumer Protection Act, 1986 -Section 2(d)-Consumer-Charitable Trust purchasing C.T. Scan machinery-Every patient who is referred to Diagnostic Centre of appellant charitable trust had to pay for it-Only 10% patient were provided free service-Goods (machinery) obtained by appellant were being used for commercial purposes-Appellant not a consumer within meaning of Consumer Protection Act.

       

JUDGMENT

S. Saghir Ahmad, J.-This appeal was disposed of by us by our judgment dated 12th August, 1999.

2. Mr. R.N. Keswani, appearing on behalf of the appellant, has filed the instant Application stating that he was the only counsel appearing on behalf of the appellant on 12.8.1998, but since he was busy in some other Court when the matter was taken up by us, he could not come and argue the appeal. He also stated that the counsel who was deputed to make a mention that he (Mr. R.N. Keswani) was busy in some other Court was not entitled to argue the appeal.

3. The appeal was heard by us in detail and elaborate arguments were made on behalf of the appellant also, but having regard to the fact that Mr. Keswani was the only counsel in the appeal and he has stated that the other counsel was not entitled to argue the appeal, we have heard Mr. Keswani as also Mr. S.P. Mithal.

4. The main reliance on behalf of the appellant has been placed on the decision of this Court in Laxmi Engineering Works v. P.S.G. Industrial Institute1 in support of the contention that the appellant was a "consumer" within the meaning of the definition set out in the Consumer Protection Act, 1986. The definition was considered by us and it was held that since the machinery in question was installed by the appellant for commercial purpose, it would not be a "consumer".

5. It is contended by the counsel for the appellant that the term "commercial purpose" has been considered by this Court in the case of Laxmi Engineering Works (supra) and the observation of National Commission that "commercial purpose" would mean "profit-making activity on a large scale" was approved and, therefore, the activity of the present appellant would not be a commercial activity as no "profit-making on a large scale" is involved. We do not agree. This Court in that decision had further held in para 21 as under :

"21. We must, therefore, hold that :

(i) The explanation added by the Consumer Protection (Amendment) Act 50 of 1993 (replacing Ordinance 24 of 1993) with effect from 18.6.1993 is clarificatory in nature and applies to all pending proceedings.

(ii) Whether the purpose for which a person has bought goods is a "commercial purpose" within the meaning of the definition of expression `consumer in Section 2(d) of the Act is always a question of fact to be decided in the facts and circumstances of each case.

(iii) A person who buys goods and uses them himself, exclusively for the purpose of earning his livelihood, by means of self-employment is within the definition of the expression consumer ."

Applying those tests, the Court in the case of Laxmi Engineering Works (supra) held that the appellant was not a consumer as the machinery in that case were not purchased for self-employment, but were purchased for "commercial purposes."

6. It is, therefore, clear that in spite of the commercial activity, whether a person would fall within the definition of "consumer" or not would be a question of fact in every case. The National Commission had already held on the basis of the evidence on record that the appellant was not a "consumer" as the machinery was installed for "commercial purpose". We have been again referred to various documents, including the "Project document", submitted by the appellant itself to the Bank for a loan to enable it to purchase the machinery in question, but we could not persuade ourselves to take a different view.

7. Learned counsel for the appellant then referred to the case of Addl. Commissioner of Income Tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association2 wherein the activity of a charitable institution, though commercial in nature, was held to be a part of the charitable activity. This decision does not help the appellant as it was a decision rendered under the Income Tax Act and the question which we are considering here had not arisen in that case.

8. Learned counsel for the appellant then referred to the







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