The case concerns the applicability of the Consumer Protection Act, 1986 (CP Act), as re-enacted in 2019, to complaints alleging "deficiency in service" against Advocates practicing the Legal Profession. The National Consumer Disputes Redressal Commission (NCDRC), New Delhi, held that such complaints were maintainable under the CP Act, but subsequent appeals contested this decision. The court, after a thorough analysis of legislative intent, international practices, and the unique nature of the legal profession, concludes that legal services provided by lawyers do not fall within the ambit of consumer protection laws. The appeals are disposed of accordingly.
Introduction: The case raises the question of whether complaints against Advocates for "deficiency in service" are covered under the Consumer Protection Act, 1986 (CP Act), as amended in 2019. This document explores the interpretation and application of the CP Act, focusing on its inclusion or exclusion of professions and professionals, particularly within the legal profession.
Factual Matrix: Details the dispute involving an Advocate hired by a client for legal representation, leading to a complaint before the District Consumer Disputes Redressal Forum, Delhi.
Submissions: Arguments presented by various legal representatives, emphasizing the unique nature of the legal profession, its regulation under the Advocates Act, 1961, and the potential implications of subjecting Advocates to consumer protection laws.
Analysis: Examines the legislative intent behind the CP Act, 1986, and its re-enactment in 2019, considering statements of objects and reasons for both acts. Emphasizes the distinct characteristics of professions, particularly the legal profession, and the fiduciary duties owed by Advocates to their clients.
Differentiating Professions from Business and Trade: Highlights the specialized knowledge, moral obligations, and high status inherent in professions, distinguishing them from commercial endeavors.
Characteristics of Professions: Outlines key characteristics of professions, emphasizing specialized work, moral principles, professional associations, and community status.
Professional Liability and Duty of Care: Discusses the unique aspects of professional liability and the standard of care expected from professionals.
Legislative Intent and Object of the CP Act: Argues that the CP Act primarily aims to protect consumers from unfair trade practices, without intending to include professions or professionals within its scope.
Potential Flood of Litigation and Ineffectiveness: Warns against potential flood of litigations if all professional services were brought under the CP Act, potentially frustrating its objective of timely dispute resolution.
Professionals' Liability Despite Exclusion from CP Act: Acknowledges that professionals remain liable for misconduct or negligence, subject to regulation by their respective councils.
Proposal to Revisit Indian Medical Association vs. V.P Shantha Case: Suggests revisiting the decision in the Indian Medical Association case, arguing against equating professions with businesses or trades.
Referral to a Larger Bench and Consideration of Legal Profession: Proposes referring the matter to the Chief Justice of India for reconsideration by a larger bench, particularly concerning the unique nature of the legal profession.
Unique Nature of the Legal Profession: Extensively discusses the unique characteristics and role of the legal profession in upholding democracy and the rule of law.
Advocates' Role in Justice Delivery and Society: Highlights the indispensable role of advocates in the justice delivery system and their responsibility in upholding individual rights.
Advocates' Independence and Duty to the Court: Stresses the importance of advocates' independence and their duty to maintain the dignity of the legal profession.
Legal Profession Sui Generis: Asserts that the legal profession is unique and cannot be equated with other professions due to its distinct role and impact on society.
Consideration of Services under a Contract of Personal Service: Explores whether legal services fall under a contract of personal service, potentially excluding them from the CP Act's definition of services.
Attributes of Lawyer-Client Relationship: Defines the agency relationship between lawyers and clients and outlines lawyers' duties and responsibilities towards their clients.
Exclusion of Legal Services from Consumer Protection Laws: Examines legislative intent and international practices, concluding that legal services provided by lawyers are not covered under consumer protection laws.
International Practices and Legislative Intent: Discusses international practices and the regulatory framework in India, advocating for the exclusion of professional services from consumer protection laws.
Conclusion: The court holds that complaints alleging deficiency in service against lawyers are not maintainable under consumer protection laws. The appeals are disposed of accordingly.
Case Title: Bar of Indian Lawyers through its President, Jasbir Singh Malik Vs. D. K. Gandhi PS National Institute of Communicable Diseases and Anr.
Citation: 2024 LawText (SC) (5) 143
Case Number: CIVIL APPEAL NO. 2646 OF 2009
Date of Decision: 2024-05-14