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2026 Supreme(Online)(NCDRC) 735

IN THE NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI
J. Rajendra, Presiding Member, Anoop Kumar Mendiratta, Member
RAKESH KUMAR GUPTA – Appellant
Versus
SURAYA STEEL HARDWARE – Respondent
REVISION PETITION NO.2484 OF 2018



Important Points

A small-scale contractor purchasing materials for a construction project to earn a livelihood through self-employment is a 'consumer' under the Consumer Protection Act, 1986, as such use is not for a 'commercial purpose' despite the employment of a few laborers.

Subject

Consumer Law - Consumer Definition / Commercial Purpose

Act Referred

Headnote

(A) Consumer Protection Act - Definition of 'Consumer' - Commercial Purpose - Exception for self-employment - A person who purchases goods for the purpose of earning their livelihood by means of self-employment is not excluded from the definition of 'consumer' even if the activity generates profit. (Para 12, 13)

(B) Self-Employment vs. Commercial Venture - Small-scale construction contracts - The employment of a few laborers to discharge primary obligations in a small construction contract does not convert the purchase of incidental materials into a 'commercial purpose' if the dominant intention is earning a livelihood through self-employment. (Para 18)

Issues: Whether a small-scale contractor purchasing materials for a construction project to earn a livelihood falls within the definition of 'consumer' under Section 2(1)(d) of the Consumer Protection Act, 1986.

Advocates:
For the Appellants/Petitioners: Namrata Chandorkar
For the Respondents: Dinkar Tiwari, Talat Chaudhary

Table of Content
1. background of the dispute and lower court rulings on consumer status. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. arguments regarding the definition of 'consumer' and 'commercial purpose'. (Para 8 , 9 , 10 , 11)
3. analysis of statutory definitions and judicial precedents on self-employment. (Para 12 , 13 , 14 , 15 , 16)
4. determination that small-scale contracting for livelihood constitutes self-employment. (Para 17 , 18)
5. restoration of the district forum order and final ruling. (Para 19)

JUSTICE ANOOP KUMAR MENDIRATTA, MEMBER

ORDER

1. Present Revision Petition has been preferred on behalf of the petitioner/complainant, challenging Order dated 18.04.2018 passed by learned State Consumer Disputes Redressal Commission, UP, Lucknow (hereinafter referred to as “State Commission”), whereby the First Appeal No.934 of 2016 preferred by the respondent/opposite party was allowed. Thereby the Order dated 31.03.2016 passed by the learned District Consumer Disputes Redressal Forum, Jaunpur allowing CC No.40 of 2015 was set aside.

The petitioner and respondent are hereinafter referred to as complainant and opposite party respectively, as appearing in the complaint, for sake of convenience.

2. Facts fall within a narrow compass. Petitioner/complainant claims to be a contractor engaged in construction work on a small scale for earning his livelihood by way of self-employment. Complainant undertook a construction contract worth Rs.2 lacs for construction of house of one Vanshraj Yadav and for execution of contract purchased SS steel pipes weighting 9 kg. 900 gms. from Surya Steel Hardware (OP/respondent) for a total consideration of Rs.43,277/- along with 26 ‘stap’ for Rs.7,100/- and other construction material. Complainant further claims to have purchased 180 pieces of ‘Dandli’, which were found unsuitable for intended work due to incorrect dimensions.

3. Complainant alleged that an excess amount of Rs.60/- per pipe, totalling Rs.1,560/- was charged by OP. Further, SS pipes supplied by the OP/respondent were deficient in weight by approximately 2.8 kg per pipe and when the complainant sought replacement of 32 defective pipes, the same were neither replaced, nor refund was made by OP. Consequently, complainant claims to have suffered substantial financial loss owing to supply of deficient and defective material by the OP.

4. OP/respondent, apart from disputing deficiency in service challenged the maintainability of the complaint on the ground that complainant was engaged in construction activity for commercial purpose and, as such, did not fall within the definition of ‘consumer’ under Section 2(1)(d) of the Consumer Protection Act, 1986.

5. Vide Order dated 31.03.2016, learned District Forum partly allowed the claim holding that the complainant undertook the contract for earning his livelihood and, therefore, fell within the definition of ‘consumer’. Further, complainant was held entitled to Rs.43,277/- from OP towards 32 pieces of SS pipes with interest @ 7% per annum from 20.12.2014.

6. FA No.934 of 2016 preferred on behalf of OP challenging the Order passed by learned District Forum, was allowed by the learned State Commission, holding that the complaint was not maintainable as the complainant did not fall within the definition of ‘consumer’ under Section 2(1)(d) of the Consumer Protection Act, 1986.

7. Aggrieved against the Order passed by the learned State Commission, complainant/petitioner has preferred the present Revision Petition and prays for restoration of Order passed by the learned District Forum, whereby the complainant was allowed.

8. The reasons recorded by the learned State Commission vide impugned Order dated 18.04.2018 may be reproduced for appreciation of contentions raised on behalf of the respective counsels:

“According to complaint, the respondent/complainant asked to the appellant/defendant to give another pipe after changing that pipe, on which, he received back the pipe sold

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