More Stories

Informist, Wednesday, Sep 18, 2024

 

NEW DELHI – The Supreme Court today sought the Centre's view on whether a charitable trust falls under the definition of consumer under the Consumer Protection Act, 1986. Making the central government through the Ministry of Consumer Affairs party to the case, the court sought their assistance in interpreting the word "consumer" under the Act and listed the case for hearing on Oct 16.

 

An earlier judgment of the court in 2017 had said a trust would not be a person and, consequently, a consumer within the meaning of the Act. However, in 2019, the court referred the issue to a larger bench.

 

The matter has its genesis in the District Consumer Disputes Redressal Forum, Jodhpur, Rajasthan, accepting the claim of the Smt Tarabai Desai Charitable Ophthalmic Trust and directing Supreme Elevators India Pvt Ltd to pay a sum of 590,000 rupees to the trust as compensation along with interest of 9% per annum. 

 

However, the Rajasthan State Consumer Disputes Redressal Commission allowed the appeal by Elevators India on the ground that a trust could not be a "consumer" within the meaning of the Act. This was upheld by the National Consumer Disputes Redressal Commission, after which the trust moved the top court. 

 

In 2019, a two-judge bench of the court perused the definition of consumer and said it means anyone who buys any goods for consideration or hires or avails services for a consideration. The bench said the definition of person in terms of the Act was also inclusive. "In our view, the case of a trust may also come within the purview of the definition of person under the Act," the court said. The bench observed that it found it difficult to accept the argument that a trust would not come within the definition of a consumer, and referred the issue to a larger bench.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.