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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dinesh Singh, Presiding Member
Taken up through video conferencing
M/s. Freight System (India) Private
Limited —Complainant
versus
Omkar Realtors & Developers Private
Limited and Anr. —Opp. Parties
Consumer Case No.886 of 2020
Decided on 25.1.2021

Advocates:
Counsel for the Parties:
For the Complainant:Mr. Vivek Kohli, Sr. Advocate with Ms. Bharti Chawla, Advocate

IMPORTANT POINT
Company which has purchased commercial space for its office is a commercial complex held not a consumer.

Headnote:

Consumer Protection Act, 2019—Sections 58(1)(a), 59, 2(7), 2(31) and 2(42)—Companies Act, 2013—Section 4(1)(c)—Company—Whether a consumer—Determination of—Company purchased commercial space in a commercial complex in its own name, as its property—Eleven units have been purchased by the complainant company for its office—Whether complainant company is a consumer ?—(No)—As per section 2(7)(ii) and Section 2(42) of Act of 2019, the complainant company while has purchased commercial space for its office in a commercial complex is not a consumer—Land and buildings of a company its property, its immovable capital assets, should ordinarily not be viewed in isolation of its objects as given in its memorandum—A company purchasing commercial space for its office in a commercial complex is also materially different from a company indemnifying its raw materials, finished goods, plaint, machinery, lands and buildings, etc. by taking insurance—Purpose is indemnification against perils, nothing per se to do closely and directly with its profit-generating activity, the dominants purpose, is not linked with its commercial activity—As such the company straightaway falls within the meaning of consumer in accordance with section 2(7)—Complainant company held not a consumer within section 2(7)—Direction issued. (Paras 12 to 18)

Result: Complaint Dismissed.

ORDER

Dinesh Singh, Presiding Member.—This Complaint has been filed by M/s Freight System (India) Private Limited (the ‘Complainant Co.’) under Section 58(1)(a) read with Section 59 of The Consumer Protection Act, 2019 (the ‘Act 2019’).

2. Mr. Vivek Kohli, learned senior Counsel for the Complainant Co. was heard on admission on 20.01.2021.

The record was perused.

The Complaint contains allegations against the Opposite Party No. 1, Omkar Realtors and Developers Private Limited, the builder / developer (the ‘Builder Co.’) and the Opposite Party No. 2, The Summit Business Park Cooperative Society Limited, the maintenance agency (the ‘Maintenance Society’).

3. The subject matter of the Complaint is 11 units, together admeasuring 17,203 sq. ft., comprising the entire Mezzanine Floor of Summit Business Bay Andheri, purchased by the Complainant Co. from the Builder Co. for a total consideration of Rs. 17,95,30,000/-.

4. On the preliminary issue of whether the Complainant Co. is a ‘consumer’ under the Act 2019, learned senior Counsel submitted that the said 11 units have been purchased by the Complainant Co. for its office. He argued that the Complainant Co.’s office has no direct and close nexus with its profit generating activity, the dominant purpose of purchasing space for its office in the business park is not linked to its commercial activity.

In support of his argument he principally relied on Hon’ble Supreme Court’s judgment dated 14.11.2019 in Lilavati Kirtilal Mehta Medical Trust vs. Unique Shanti Developers & Ors. IV (2019) CPJ 65 (SC) and on this Commission’s Order dated 08.07.2016 in Crompton Greaves Limited & Anr. vs. Daimler Chrysler India Private Limited & Ors. (Consumer Case No. 51 of 2006).

Learned senior Counsel submitted that the Complainant Co. is a ‘consumer’ under Section 2(7)(ii) of the Act 2019.

5. Section 2(7) of the Act 2019 is first reproduced for ready convenience.

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 purposes 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;

6. A company is included in the definition of ‘person’ contained in Section 2(31), it is not per se precluded from being ‘consumer’, provided, if, for a particular purpose, it meets the requirements of ‘consumer’ as defined in Section 2(7) of the Act 2019.

‘housing construction’ falls under ‘service’ in Section 2(42).

Sub-section (ii) of Section 2 (7) specifically stipulates “but does not include a person who avails of such service for any commercial purpose”.

7. On the face of it itself:

[a] ‘housing construction’ under the definitio

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