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1995 Supreme(P&H) 1270

PUNJAB & HARYANA HIGH COURT
Amarjeet Chaudhary and V.S.Aggarwal JJ.
Centre For Research In Rural And Industrial Development
Versus
Madan Lal Sahni
Civil Writ Petition No. 13722 of 1992,
Decided On : NOVEMBER 2, 1995

The Consumer Forum has jurisdiction only to decide disputes relating to goods as defined in the Sales of Goods Act and not disputes arising out of contracts of appointment or personal service.

Headnote:

{'KEYWORD': 'Consumer Protection Act, 1986', 'SUBJECT': 'Jurisdiction of Consumer Forum', 'ACT SECTION LIST': ['Consumer Protection Act, 1986, Section 2(d)', 'Consumer Protection Act, 1986, Section 2(o)', 'Sales of Goods Act, Section 2(7)']}

Fact of the Case:

The petitioner, a research organization, challenged the jurisdiction of the District Consumer Forum to entertain a complaint filed by an employee seeking arrears on account of revision of pay scale.

Finding of the Court:

The court held that the Consumer Forum has jurisdiction only to decide disputes relating to goods as defined in the Sales of Goods Act and not disputes arising out of contracts of appointment or personal service.

Issues: Whether the Consumer Forum has jurisdiction to entertain a complaint filed by an employee seeking arrears on account of revision of pay scale.

Ratio Decidendi: The court interpreted the definitions of 'Consumer' and 'Service' under the Consumer Protection Act, 1986, and concluded that the Act applies only to disputes relating to goods and not to disputes arising out of contracts of appointment or personal service.

Final Decision: The court allowed the writ petition and quashed the summoning order issued by the District Consumer Forum.

Judgment

Amarjeet Chaudhary and V.S.Aggarwal JJ.

1. This writ petition has been filed by the Centre for Research in Rural Development, Chandigarh, for quashing the proceedings pending in the District Consumer Forum against the petitioner.

2. The brief facts which led to the filing of present petition are that respondent No. 1, Madan Lal Sahni, who was engaged as Superintendent in the pay scale of Accounts Assistant in the Border Area Project, which was financed by the Planning Commission of India, filed an application in the District Consumer Forum for the payment of arrears on account of revision of pay scale. The petitioner received summons from the District Consumer Forum for appearance on 31.8.1992 before it. On receipt of summons, the employer of respondent No. 1 i.e. the writ petitioner has filed the present petition for quashing the same.

3. It has been averred in the petition that as per the definition of Consumer and Service, the Consumer Forum has the jurisdiction only to decide a dispute relating to Goods as defined in the Sales of Goods Act and not the dispute arising out of contract of appointment or personal service. It has further been averred that only such persons will be covered as consumer who buy any goods for some consideration and the definition will have to be read with the statement of objects and reasons as defined in the Act.

4. It has also been averred in the petition that the petitioner was engaged in the research activities and does not deal with any type of sale of goods. The petitioner is also not engaged with any type of manufacturing process, trade, purpose and also does not sell any articles. As such, the petitioner is not covered by the provisions of Consumer Protection Act, 1986 .

5. We have perused the paper book and the written state lent filed on behalf of respondent No.1.

6. In order to arrive at the conclusion, it will be desirable to examine the definition of Consumer as defined Under Section 2(d) and Service as defined Under Section 2(o) of the Consumer Protection Act as well as statement of Objects and Reasons as mentioned in the Act, which read thus:

"2(d) Consumer means any person who (i) buys any goods for 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 re-sale or for any commercial purpose; or

(ii) hires 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 the service for consideration paid or promised or partly paid and partly promised or under any system of deferred payment when such service are availed of with the approval of the first mentioned person."

2(c) Service means service of any description which is made available to potential users and includes the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, entertainment, amusement or the purveying a news or other information, but does not include the rendering of any service free of charge or under a contract of personal service." Statement of Objects & Reasons: The Consumers Protection Bill, 1986, seeks to provide for better protection of the interest of Consumers and for the purpose, to make provision for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes and for matters connected therewith." The rights which are to be protected are as under:-

a) the right to be protected against marketing of goods which are hazardous to life and property;

b)







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