Case Note & Summary
The Supreme Court allowed the appeal filed by Appellants and Another against Respondents and Another -- The Court reversed the NCDRC's decision which had dismissed the consumer complaint on the ground that the appellants were not 'consumers' under Consumer Protection Act, 1986 -- The NCDRC had concluded that leasing the flat constituted commercial purpose -- The Supreme Court held that the exclusion clause for commercial purpose in Section 2(1)(d) applies only when goods or services are obtained for commercial purpose at the time of purchase -- The appellants had purchased the flat for personal use to live closer to their parents -- Subsequent leasing due to changed circumstances did not alter the nature of the original transaction -- The Court remanded the matter to NCDRC for fresh consideration on the merits of the complaint regarding deficiency in service and unfair trade practice
Headnote
The Supreme Court allowed the appeal and set aside the impugned judgment of the National Consumer Disputes Redressal Commission (NCDRC) -- The Court held that the appellants were 'consumers' under Section 2(1)(d) of Consumer Protection Act, 1986 (the 1986 Act) -- The NCDRC had erroneously dismissed the complaint on the ground that the appellants did not fall under the definition of 'consumer' as they had leased the flat -- The Court emphasized that the exclusion clause for 'commercial purpose' applies only when goods or services are obtained for commercial purpose at the time of purchase -- Subsequent leasing of a property purchased for personal use does not convert the transaction into a commercial purpose -- The burden of proving commercial intent lies on the person alleging it -- The respondents failed to discharge this burden -- The matter was remanded to NCDRC for fresh consideration on merits
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Issue of Consideration: Whether the appellants fall under the definition of 'consumer' under Section 2(1)(d) of Consumer Protection Act, 1986 despite leasing the purchased flat
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Final Decision
The Supreme Court allowed the appeal, set aside the impugned judgment of NCDRC, and remanded the matter to NCDRC for fresh consideration on merits
