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2011 Supreme(MP) 1148

MADHYA PRADESH HIGH COURT
S.C.Vyas, Veena Misra, V.K.Patil, JJ.
Neelam Chand Kothari - Appellant
Versus
Emsons Imaging and another - Respondent
Decided On : 25-07-2011

Advocates Appeared:
Appearances :Mr.R.K.Bhawnani, Advocate for the Appellant, Mr.B.S.Khanuja, Advocate for the Respondents.

A person who purchases an item for commercial use and subsequently hires services for the same purpose does not qualify as a 'consumer' under the Consumer Protection Act, 1986.

Headnote:

Consumer - Consumer Protection - Consumer Protection Act, 1986 - Section 2(1)(d) - Birla Technologies Ltd. Vs. Neutral Glass & Allied Industries Ltd., 2011 CTJ 121

Fact of the Case:

The appellant, an Orthopaedic Specialist, entered into a contract with the respondents for the purchase of a Pre-owned GECT Scanner Model Prospeed Plus Machine. The appellant alleged deficiency in service and unfair trade practice against the respondents and claimed compensation of Rs. 19,80,000.

Finding of the Court:

The District Forum dismissed the complaint on the ground that the appellant does not come in the category of 'consumer' as defined in Section 2(1)(d) of the Consumer Protection Act, 1986.

Issues: Whether the appellant qualifies as a 'consumer' under the Consumer Protection Act, 1986.

Ratio Decidendi: The court found that the appellant purchased the machine for commercial purpose and used it for profit, thus not falling under the definition of 'consumer' as per Section 2(1)(d) of the Act. The court referred to the case of Birla Technologies Ltd. Vs. Neutral Glass & Allied Industries Ltd., 2011 CTJ 121, which established that when a purchase is for commercial purpose, subsequent hire of services for such equipment will also be for the same purpose, and the person will not be considered a 'consumer' under the Act.

Final Decision: The appeal was dismissed as the court found no ground to interfere with the order of the District Forum.

JUDGMENT :

As per S.C. Vyas, J. (President) :-

This appeal is directed against the order dated 13-1-2011 of District Consumer Disputes Redressal Forum, Durg (C.G.) (hereinafter called "District Forum" for short), in Complaint Case No. 255/2010, whereby the complainant of the appellant herein, alleging deficiency in service on the part of the respondents and also alleging unfair trade practice against them, has been dismissed by the District Forum on the ground that the appellant does not come in the category of "consumer", as defined in Section 2(1) (d) of the Consumer Protection Act, 1986 (hereinafter called "the Act" for short).

2. In nutshell, the facts of the case are that appellant herein, is an Orthopaedic Specialist and is practicing in that field at Durg. He entered into a contract with the respondents for purchase of a Pre-owned GECT Scanner Model Prospeed Plus Machine at the cost of Rs. 15,50,000/-. The cost of the said Machine was paid in advance. It was agreed that Machine will be supplied within 90 days and will be installed at the place of working of the complainant. After lapse of a lot of time, on 4-2-2010 the Machine was brought at the place of working of the complainant and was installed there. In the meantime, when contacted, the Director of the Company informed the complainant that during transportation, some defects generated in the Machine and so it is under repair. The allegation of the complainant was that the Engineers of the respondents Company were trying to install it between 4-2-2010 to 14-2-2010 unsuccessfully and then went back. Later on, on 24-2-2010, the Machine was installed, but it was observed that the images obtained with the help of the Machine were not clear. When complainant met to the Engineer of the Company, then he assured him that after some time, Machine will generate clear pictures. Then, a Certificate of Satisfaction was given by the complainant, but even thereafter defects in the films were continuing, then again the supply Company was contacted. Engineer of the Company inspected the Machine but then on this pretext that period of warranty has already over, no help was provided by the respondents to the complainant. In the meantime, the maintenance contract for Rs. 2,00,000/-was also executed between the parties, but even them the Machine was not properly repaired. It came to the knowledge of the complainant that at the place of imported Machine from foreign, a Machine, ,which was already being used in a clinic of a Doctor of Patna was supplied to him in defective condition. It amounts unfair trade practice, so alleging unfair tratte practice as well as deficiency in service, compensation to the tune of Rs. 19,80,000/- was claimed by the complainant from the respondents by filing complaint before the District Forum.

3. Respondents in the written version refuted allegations levelled by the complainant and claimed that the Machine, which was supplied and installed at the working place of the complainant was perfectly in good condition and was working satisfactorily to the satisfaction of the complainant himself, that is why he made no complaint to the Engineers of the respondents Company when they inspected the Machine. After being fully satisfied from the operation of the Machine, remaining cost of the Machine Rs. 2,10,000/- was also paid by the complainant and when period of warranty was over, then a false complaint on untenable grounds, has been made by the complainant. It has also been averred that the Machine was purchased by the complainant for commercial purpose and it has been used for that purpose by the complainant, so he does not come in the category of "consumer" as per definition under the Act. It has also been averred that the Machine was to be used by the complainant for the purpose of earning more profit and the Machine is still functional and working properly at the place of complainant.

4. Learned District Forum, first of all has taken into consideration the question a







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