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2025 Supreme(Online)(SCDRC) 6596

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Mrs. Justice Daya Chaudhary, CJ, Ms. Simarjot Kaur, Member, Mr. Vishav Kant Garg, Member
PIMS Medical and Education Charitable Society – Appellant
Versus
Punjab State Power Corporation Ltd. – Respondent
Consumer Complaint No.77 of 2022



Advocates:
For the Complainant:Sh. I.S.Bhatia, Advocate
For OPs No.1-3:Ms. Diya Sodhi, Advocate for Sh. Sehaj Bir Singh, Advocate
For OP No.4: None

Charitable entities operating for profit do not qualify as consumers under the Consumer Protection Act.

Headnote:(A) Consumer Protection Act, 2019 - Section 47 - Definition of ‘Consumer’ - Complainant, a charitable society operating as a hospital, raises a dispute over time-barred electricity charges. The court underscores that the society’s operations, charging fees, and employing staff for profit denote ‘commercial purpose’, falling outside the Consumer Protection Act definition. (Paras 25, 26, 30)

(B) Maintainability - Court ruled that since the Complainant was operating as a business entity, its complaint under the CP Act is not maintainable citing precedent judgments emphasizing the commercial nature of similar entities. (Paras 29, 30)

Facts of the case:
Complainant contests a demand by electricity providers, arguing it is time-barred and seeks a refund for amounts paid beyond due claims. Plaintiff asserts unlawful recovery by OPs as they failed to adequately justify the sums demanded, considered time-barred as per applicable laws.

Findings of Court:
The claim was found not maintainable, as the Complainant was operating in a commercial capacity and thus excluded from consumers under CP Act.

Issues: The key issue was whether the Complainant, functioning as a hospital charging for services, qualifies as a 'consumer' under the Act.

Ratio Decidendi: The court held that entities engaged in commercial activities, despite their charitable registration, do not meet the Consumer definition under the Act, affirming the dismissal of the case.

Result: Complaint dismissed.

Table of Content
1. factual background of the complainant's case against the ops. (Para 1 , 2)
2. complainant's arguments regarding time-barred demands and ineffectiveness of responses. (Para 5 , 12)
3. arguments on maintainability and the definition of 'consumer' under the act. (Para 17 , 18 , 20)
4. court's observations on the nature of complainant's operations affecting consumer status. (Para 25 , 26)
5. final ruling on the maintainability of the complaint. (Para 30)

SIMARJOT KAUR, MEMBER

The Complaint has been filed by PIMS Medical and Education Charitable Society through its Resident Director/Authorized Signatory under Section 47 of the Consumer Protection Act, 2019 (in short "the Act") against the OPs stating therein that the Complainant is a Charitable Welfare Society duly Registered with the Registrar of Firms & Societies, Punjab, Chandigarh under the Societies Registration Act under the name & style of "PIMS MEDICAL AND EDUCATION CHARITABLE SOCIETY", vide Registration No.4004 of 2009, having its Administrative office at Punjab Institute of Medical Sciences, Garha Road, Jalandhar. The Complainant has been granted concessions to plan, design, finance, construct, develop, upgrade, run, operate and maintain the Punjab Institute of Medical Sciences at Garha Road, Jalandhar by Government of Punjab and to run the PIMS Medical College and Hospital in PPP (Public Private Partnership) Mode. The Complainant is a consumer of OPs and is having electricity connection account No.3002984515 with a sanctioned load of 5280 KW/5000 K.V.A. under B.S. category under Jalandhar Cantt. Division of PSPCL, Jalandhar. It is installed in the name of Director-Principal, PIMS, in the premises of the Complainant situated at Garha Road, Jalandhar. The Complainant had been regularly paying the electricity bills issued by OP No.2 from time to time. The OP No.2 had raised a demand of Rs.92,30,649/- on account of Sundry Charges @ 3% on account of transformation losses vide Memo No.1285 dated 06.12.2019 in respect of account of the Complainant. On request of the Complainant PSPCL reviewed the demand and admitted its fault and revised the demand to the tune of Rs.45,04,320/- vide Memo No.232 dated 14.02.2020. Said memo had been returned by the Complainant with remarks to submit the details and basis of the demand of Rs.45,04,320/-, PSPCL had claimed the said amount on account of Sundry charges @ 3% on account of transformation losses for the period w.e.f. 01.06.2015 upto 22.11.2019. Thereafter, the Complainant had received Bill No.1002633504 dated 21.04.2020 of Rs.69,65,190/- which included Sundry Charges as Rs.41,04,228/- and amount of Rs.28,60,964/- on account of monthly charges for the electric energy consumed. The society/institute had paid amount of Rs.28,60,964/- against the said Bill. Again representations dated 01.05.2020 and 09.10.2020 was sent to OP No.2 regarding demand relating to the period w.e.f. June, 2015. The said demand was barred by time as per Section 56(2) of Punjab State Electricity Act read with Rule 93.2 of Electricity Supply Manual. As per which demand for lawful arrears if any could be raised and enforced within two years from the date of such demand. The Complainant had sent anther representation dated 08.12.2020 wherein it had been stated that as per Section 56(2) of Punjab State Electricity Act read with Rule 93.2 of Electricity Supply Manual, PSPCL was debarred from claiming the Sundry Charges for the period from June, 2015 to November, 2017. The Complainant Society had requested to recall the demand and recalculate the amount sought to be recovered. OP No.2 had sent demand Note dated 11.12.2020 (Ex.C-9) claiming a sum of Rs.45.04.321/-. Copy whereof is Exhibit C-9.

2. The Complainant had again sent representation dated 22.12.2020 and reiterated his stand taken in the earlier letters/representations. Thereafter, the Complainant had deposited an amount of Rs.13,32,930/- on 30.01.2021 and Rs.12,84,564/- on 26.03.2021 vide receipts issu

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