The Supreme Court has said buyers of goods or commodities for ''self
consumption'' in economic activities in which they are engaged would
be ''consumers''
for the purpose of claim of damages under the provision of the
Consumer Protection Act.

In a ruling on Friday, a bench comprising Justice SB Sinha and Justice
Deepak Verma said, "buyers of goods or commodities for ''self
consumption'' in economic
activities in which they are engaged would be consumers as defined in
the Act (Consumer Protection Act, 1986)".

The immediate purpose as distinct from the ultimate purpose of
purchase, sale in the same form or after conversion and a direct nexus
with profit or loss
would be the determinants of the character of a transaction-- whether
it is for a ''commercial purpose'' or not, the court said.

The court further said that while enacting the provision of the Act,
Parliament wanted to exclude from the scope of the definition (of
consumer) the persons
who obtain goods for resale and also those who purchase goods with a
view to use them for carrying on any activity for earning.

The legal heirs of the purchaser of a truck had come to the apex court
seeking damages due to delayed delivery of the necessary papers of the
truck. It
was auctioned to him on account of default in payment of instalments
committed by its previous owner.

The court said the appellant had mentioned categorically that he had
bought the truck to be used exclusively by him for the purpose of
earning his livelihood,
by means of self-employment. Even if he was to employ a driver for
running the truck, it would not have changed the matter in any case,
as even then appellant
would have continued to earn his livelihood from it and, of course, by
means of self-employment, court said.

(10-Aug-09)

Economic Times
thanks,
mukesh jain.

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