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MADHYA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BHOPAL
Sunita Yadav, President, Dr. Monika Malik, Member
Ocean Enterprises Through Partner S. Vinod and Ors. – Appellants
versus
Ram Kumar Kataria and Anr. – Respondents
Appeal No.397 of 2020
Decided on 6.1.2026

Advocates:
Counsel for the Parties:
For the Appellant: Ms. Sangeeta Moharir, Learned Counsel
For the Respondents: None

IMPORTANT POINT
Commercial Purpose Exception – The plea that a machine was purchased for “earning livelihood by way of self-employment” is a significant averment that brings a complainant within the ambit of the definition of ‘Consumer’ under Section 2(1)(d), requiring a proper hearing on merits rather than summary dismissal.

Headnote:

Consumer Protection Act – Section 2(1)(d) – Commercial Purpose versus Self-Employment – Territorial Jurisdiction – Dismissal at Admission Stage – Appeal against the order of District Commission dismissing the complaint at the motion hearing stage – District Commission held that it lacked territorial jurisdiction as OPs did not conduct business in Indore and that the Complainant was not a ‘consumer’ as the machine was purchased for commercial gains – Appellant argued that the machine (Sanitary Napkin manufacturing) was purchased for earning livelihood by way of self-employment and delivery was to be made at Indore, creating a cause of action – State Commission observed that the Complainant had made specific averments regarding “earning livelihood by way of self-employment” in the pleadings – Held, the District Commission acted hastily in dismissing the complaint at the threshold – The issues regarding jurisdiction and the definition of ‘consumer’ could have been adjudicated better after issuing notice to the Opposite Parties and placing their version on record – Impugned order set aside – Case remanded to District Commission for decision afresh on merits – Appeal Allowed – Matter remanded.

Result: Appeal allowed.

ORDER

Dr. Monika Malik, Member—This appeal by the complainant / appellant (hereinafter referred to as ‘complainant’), is directed against the order dated 20.2.2020 passed by the District Consumer Disputes Redressal Commission No.2, Indore (for short ‘District Commission’), in complaint case No.142/2020, whereby the District Commission has dismissed the complaint at motion hearing stage.

2. Heard.

3. Learned counsel for complainant argued that the District Commission has failed to appreciate that the subject machine, which was purchased by the complainant was to be installed at Indore. The District Commission observing that the opposite parties do not conduct any business at Indore, reached a conclusion that the District Commission, Indore has no territorial jurisdiction to entertain the complaint. The fact is that the cause of action arises at Indore, since the said machine was to be delivered at Indore. Mention of wrong address, as has been observed by the District Commission, is just a typographical error, which could not be a basis of dismissal of complaint. She further argued that the District Commission has wrongly observed that the complainant is not a ‘consumer’ as defined in Section 2(1)(d) of the Consumer Protection Act, since he is working for commercial gains. She referred judgment of Hon’ble Supreme Court in the case of M/s Kozyflex Mattresses Private Limited vs. SBI General Insurance Company Limited and Anr. passed in Civil Appeal No.7966/2022 and argued that definition of ‘person’ is very broad and firm/company are also included in such definition. The complainant before the District Commission had pleaded that he had purchased the said machine for the purpose of earning livelihood by way self-employment. Therefore, the District Commission has committed error in dismissing the complaint at admission stage. She thus prayed that the matter be remanded back to the District Commission with direction to decide it on merits after issuing notice to the opposite parties.

4. We find that the complainant before the District commission has submitted that he had purchased the machine for manufacturing sanitary napkin pads. He alleged that work order for said machine was issued on 3.2.2019 and it was to be installed by 18.3.2019 but the opposite parties despite notices and reminders failed to install the same in complainant’s premises. There are specific averments in the complaint regarding purchase of said machine for earning livelihood by way of self-employment.

5. Therefore, in view of the aforesaid, we reach a conclusion that the District Commission has hastily dismissed the complaint at the stage of motion hearing. The points on which the complaint was dismissed could have been decided better after issuing notice to the opposite parties and after their version was brought on record.

6. In view of the above the impugned order is set aside. The case is remanded back to the District Commission for decision afresh on merits in accordance with law.

7. Parties are directed to appear before the District Commission on 9th February, 2026.

8. All contentions of the parties are kept open.

9. The District Commission shall proceed with the matter in accordance with law and decide the case, as expeditiously as possible.

10. Needless to mention that aforesaid observations are tentative in nature and the District Commission shall not get influenced from them while deciding the matter.

11. Record of the District Commission be returned forthwith.

12. The appeal is accordingly disposed of

13. No order as to costs.

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