NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
J.M. MALIK, PRESIDING MEMBER & DR. S.M. KANTIKAR, MEMBER
WIPRO GE HEALTHCARE PVT. LTD. & ORS - Petitioners
Versus
AJMER HOSPITAL AND RESEARCH INSTITUTE - Respondent
Revision Petition No. 912 of 2014
Decided On : 01-09-2014
For the Petitioners:Mr. Trideep Pais and Ms Nathua Shibli, Advocates.
For the Respondent:Mr. Ajay Choudhary and Mr. Ankit R. Kothari, Advocates.
The central legal point established in the judgment is the interpretation of 'commercial purpose' under the Consumer Protection Act, 1986 and the requirement for evidence to prove the purpose of purchase.
Headnote:
Commercial Purpose - Purchase of Ultra Sound Echo Cardiography machine - Consumer Protection Act, 1986 - Section 2(1)(d), Laxmi Engineering Works v. P.S.G. Industrial Institute, 1995 (3) SCC 583, Cheema Engineering Services v. Rajan Singh, VI (1998) SLT 20=(1997) 1 SCC 131, Kalpavruksha Charitable Trust v. Toshniwal Brothers (Mombay) Pvt. Ltd. and Another, VIII (1999) SLT 529=(2000) 1 SCC 512 - The court discussed the interpretation of 'commercial purpose' under Section 2(1)(d) of the Consumer Protection Act, 1986 and cited relevant case laws to determine whether the purchase of the machine was for commercial purpose. The court emphasized the need for evidence to prove the purpose of purchase and concluded that the complainant was not a consumer.
Fact of the Case:
The main question was whether the purchase of an Ultra Sound Echo Cardiography machine by a hospital was for commercial purpose. The hospital claimed to be a public and charitable trust and argued that the machine was intended for social work and to provide updated cardiology facilities to the general public.
Finding of the Court:
The court found that the complainant was not a consumer as the purchase was not for commercial purpose, based on the interpretation of 'commercial purpose' under the Consumer Protection Act, 1986 and relevant case laws.
Issues: The main issue was whether the purchase of the machine was for commercial purpose, and whether the complainant qualified as a consumer under the Consumer Protection Act, 1986.
Ratio Decidendi: The court emphasized the need for evidence to prove the purpose of purchase and cited relevant case laws to interpret 'commercial purpose' under the Consumer Protection Act, 1986.
Final Decision: The court set aside the orders passed by the lower fora and dismissed the complaint, concluding that the complainant was not a consumer. The complainant was given liberty to seek redressal of its grievances from the appropriate forum as per law.
ORDER :
J.M. MALIK, PRESIDING MEMBER
1. The main question which falls for consideration is ‘whether M/s. Ajmer Hospital and Research Institute purchased Logic 500 Pro Whole Body Colour Doppler Ultra Sound Echo Cardiography machine worth Rs. 22,50,000 from the opposite party/petitioner, M/s. Wipro G.E. Healthcare Pvt. Ltd., formerly known as Wipro GE Medical System Pvt. Ltd., for commercial purpose’?
2. Both the Fora below have directed the petitioner/opposite party to refund the said money with interest @ 9% p.a. and pay costs of Rs. 2,000.
3. Aggrieved by that order, the petitioner has filed this revision petition.
4. We have heard the learned Counsel for the parties.
5. Learned Counsel for the complainant/respondent has invited our attention to few facts. There is a letter dated 27.6.2001, which clearly mentions “Ajmer Hospital And Research Institute I-GA-15, Vaishali Nagar, Ajmer 305001 (A public and Charitable Trust). In the middle of the letter, it was mentioned:
“As per telephonic discussion with Mr. Ganesh Prasad the firm will supply the following things with the original equipment supply free of cost as per their marketing budgetary programme considering our organization as a public and charitable trust for the service to the society and humanity Echo Tech.”
6. Similar is the position regarding other letter dated 27.6.2001.
7. Learned Counsel for the respondent/complainant vehemently argued that these letters written on a letterhead clearly go to reveal that the complainant is a public and charitable trust. Consequently, by no stretch of imagination, it can be said that the complainant had purchased the machine for commercial purpose.
8. Learned Counsel for the complainant has also invited our attention towards para 15 of the complaint, wherein, in the centre, it is written:
“…..That Non-applicant firm has also not supplied the supply part shipment of the machine as per Purchase Order dated 27.6.2001 of the Complainant firm and even after the repeated assurances not supply the Short Supplied Articles and cause grave irregularities and hence is guilty for mal trade practice, for which complainant firm, for the purpose of social work, has placed purchased order for the purchase of Machine with the aim and object to give property facilities of updated Cardiology to the general public, to the non-applicant firm and also paid for the same…..”
9. Learned Counsel for the complainant vehemently argued that the petitioner/opposite party has failed to show that from the machine, the society was earning any profit. He also contended that there was noble idea behind bringing the machine to the hospital because there is no other such machine in the whole of the area. He contended that this machine is beneficial to so many people of the rural area. In order to embolden this case, learned Counsel for the complainant has cited two authorities. As a matter of fact, both the parties have placed reliance on Laxmi Engineering Works v. P.S.G. Industrial Institute, 1995 (3) SCC 583.
10. The attention of the parties was invited towards para 18 of the said judgment wherein it was mentioned that the words ‘for any commercial purposes’ are wide enough to take in all cases where goods are purchased for being used in any activity directly intended to generate profit. Learned Counsel for the complainant contended that there is not even an iota of evidence which may go to show that the said machine was installed to generate profit. Learned Counsel for the respondent/complainant stated that this is not such activity engaged on a large scale for the purpose of making profit.
11. Both the Counsel have relied upon another authority of the Supreme Court i.e. Cheema Engineering Services v. Rajan Singh, VI (1998) SLT 20=(1997) 1 SCC 131, wherein it was held:
“6. In other words, the Explanation excludes from the ambit of commercial purpose in Sub-clause (i) of Section 2(1)(d), any goods purchased by a consumer and used by him exclusively for the purpose of earning his li