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TMI Blog1995 (4) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... n was, however, made before the adding of the said explanation. It would be appropriate to read the definition at this stage. (d) consumer means any person who, (i) buys any goods, for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such good s for consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such use is made with the approval of such person but does not include a person who obtains such goods for resale or for any commercial purpose;or (ii)[hires or avails of] any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who [hires or avails of] the service for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person: THE FACTUAL MATRIX: 3. The appellant, Laxmi Engineering Works ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the value of ₹ 21 lakhs and odd. In the circumstances, we fail to see how the conclusion can be escaped that the machinery, in question which is alleged to be defective was purchased for a commercial purpose. Hence, the complainant is not entitled to be regarded as a consumer and the complaint petition filed by him was not maintainable before the State Commission. He order passed by the State Commission is set aside. The complaint petition is dismissed. The National Commission, however, observed that their order does not preclude the appellant from pursuing his remedy by way of ordinary civil suit. 4. The learned counsel for the appellant submits that the purpose for which the appellant has purchased the said machine cannot be called a commercial purpose and that the appellant cannot certainly be said to be carrying on business of manufacture of machine parts on a large scale for the purpose of earning profit. Learned counsel pointed out that appellant is a small scale industry and the said machine was purchased by him for the purpose of earning livelihood. Learned counsel submitted that the appellant is a proprietary concern of Shri Y.G. Joshi, who is a diploma hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )To facilitate the development of independent consumer groups; (f)To further international co-operation in the field of consumer protection; (g)To encourage the development of market conditions which provide consumers with greater choice at lower prices. 6. Under the head 'guidelines' and under the subheading E. Measures enabling consumers to obtain redress , the following guidelines are set out: E. Measures enabling consumers to obtain redress 28. Government should establish or maintain legal and/or administrative measures to enable consumers or, as appropriate, relevant Organisations to obtain redress through formal or informal procedures that are expeditious, fair, inexpensive and accessible. Such procedures should take particular account of the needs of low income consumers. 29. Governments should encourage all enterprises to resolve consumer disputes in a fair, expeditious and informal manner, and to establish voluntary mechanisms, including advisory services and informal complaints procedures, which can provide assistance to consumers. 30. Information on available redress and other dispute-resolving procedures should be made available to consumer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government with the prior approval of the Central Government in each district of the State by notification: (b) a Consumer Disputes Redressal Commission to be known as the State Commission established by the State Government with the prior approval of the Central Government in the State by notification; and (c) a National Consumer Disputes Redressal Commission established by the Central Government by notification. 10. Section 13 prescribes the procedure to be followed by the District Forum on receipt of a complaint from a consumer involving value upto Rupees one lakh (after amendment in 1993, five lakhs). Inter alia it provides that the District Forum shall have the same powers as arc vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of matters specified therein. Section 15 provides an appeal from the orders of the District Forum to the State Commission. Section 17 confers original jurisdiction also upon the State Commission in matters the value whereof exceeds Rupees one lakh but does not exceed Rupees ten lakhs (after amendment 5 lakhs and 20 lakhs respectively). Section 18 provides that the procedure of the State Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tobusiness disputes. This scheme of the Act in our opinion, is relevant to and helps in interpreting the words that fall for consideration in this appeal. SECTION 2(d)(i) AND THE EXPLANATION ADDED BY 1993 AMENDMENT ACT: 12. Now coming back to the definition of the expression 'consumer' in Section 2(d), a consumer means in so far as is relevant for the purpose of this appeal, (i) a person who buys any goods for consideration; it is immaterial whether the consideration is paid or promised, or partly paid and partly promised, or whether the payment of consideration is deferred; (ii) a person who uses such goods with the approval of the person who buys such goods for consideration (iii) but does not include a person who buys such goods for resale or for any commercial purpose. The expression resale is clear enough. Controversy has, however, arisen with respect to meaning of the expression commercial purpose . It is also not defined in the Act. In the absence of a definition, we have to go by its ordinary meaning. Commercial denotes pertaining to commerce (Chamber's Twentieth Century Dictionary); it means connected with, or engaged in commerce; mercantile; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods bought must be used by the buyer himself, by employing himself for earning his livelihood. A few more illustrations would serve to emphasis what we say. A person who purchases an auto-rickshaw to ply it himself on hire for earning his livelihood would be a consumer. Similarly, a purchaser of a truck who purchases it for plying it as a public carrier by himself would be a consumer. A person who purchases a lathe machine or other machine to operate it himself for earning his livelihood would be a consumer. (In the above illustrations, if such buyer takes the assistance of one or two persons to assist/help him in operating the vehicle or machinery, he does not cease to be a consumer.) As against this a person who purchases an auto-rickshaw, a car or a lathe machine or other machine to be plied or operated exclusively by another person would not be a consumer. This is the necessary limitation flowing from the expressions used by him , and by means of self-employment in the explanation. The ambiguity in the meaning of the words for the purpose of earning his livelihood is explained and clarified by the other two sets of words. 13.It is argued by the learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial purpose' in Section 2(d) in the light of the scheme of the enactment, it may be necessary to append a clarification to obviate any confusion. Section 24 declares that (E)very order of a District Forum, the State Commission or the National Commission shall, if no appeal has been preferred against such order under the provisions of this Act, be final . This Section has to be read along with sub-section (3) of Section 13. Section 13 prescribes the procedure to be followed by the District Forum on receipt of a complaint. Sub-section (3) of Section 13 says that (N)o proceedings complying with the procedure laid down in subsection (1) and (2) shall be called in question in any Court on the ground that the principles of natural justice have not been complied with. By virtue of Section 18 the procedure prescribed in Section 13 applies to State Commission as well. From the above provisions, it is clear that the orders of the District Forum, State Commission and National Commission are final as declared in Section 24 and cannot be questioned in a civil court. The Issues decided by the said authorities under the Act cannot be re-agitated in a civil court. The said provisions make i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g from the settled view that a preamble cannot control otherwise plain meaning of a provision. In fact, the law meets long felt necessity of protecting the common man from such wrongs for which the remedy under ordinary law for various reasons has become illusory....... The word 'consumer' is a comprehensive expression. It extends from a person who buys any commodity to consume either as eatable or otherwise from a shop, business house, corporation, store, fair price shop to use of private or public services. In Oxford Dictionary a consumer is defined as, a purchaser of goods or services . In Black's Law Dictionary it is explained to mean, one who consumes. Individuals who purchase, use, maintain, and dispose of products and services. A member of that broad class of people who arc affected by pricing policies. financing practices, quality of goods and services, credit reporting. debt collection, and other trade practices for which State and Federal consumer Protection Laws are enacted. The Act opts for no less wider definition. It reads as under: consumer' means any person who, (i)buys any goods for a consideration which has been paid or promised or pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the definition, consumer is the one who purchases goods for private use or consumption. The meaning of the word 'consumer' is broadly stated in the above definition so as to include anyone who consumes goods or services at the end of the chain of production. The comprehensive definition aims at covering every man who pays money as the price or cost of goods and services. The consumer deserves to get that he pays for in real quantity and true quality. In every society, consumer remains the centre of gravity of all business and industrial activity. He needs protection from the manufacturer, producer, supplier, wholesaler and retailer. 19.It must, however, be said that in both the above cases, the question arising herein was not in issue. In Morgan Stanley, the question was whether a prospective investor in the shares of a company is a consumer as defined in Section 2(f). It was held that he was not. 20.Reference to the decisions cited by the learned counsel for the parties would be in order at this stage. In Synco Textiles Private Limited v. Greaves Colton and Co.Ltd. (1991 (1) CPJ 499), the appellant purchased from the respondent three generating sets at a total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rately and specifically mentioned in the earlier portion of the definition clause, the words for any commerce purpose must be understood as covering cases other am those of resale of the goods. it is thus obvious that Parliament wanted to exclude from the scope of the definition not merely persons who obtain goods for resale but also those who purchase goods with a view to using such goods for carrying on any activity on a large scale for the purpose of earning profit. On this interpretation of the definition clause, persons buying goods either for resale or for use in large scale profit activity will not be 'consumers' entitled to protection under the Act. It seems to us clear that the intention of Parliament as can be gathered from the definition section is to deny the benefits of the Act to persons purchasing goods either for purpose of resale or for the purpose of being used in profit making activity engaged on a large scale. It would thus follow that cases of purchase of goods for consumption or use in the manufacture of goods or commodities on a large scale with a view to make profit %ill all fall outside the scope of the definition. It is obvious that Parliament in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety of India v. M/s. B.P.L. India Lid. (1992 (1) CPJ 140), follows and affirms the decision in Synco Textiles and another decision in Oswal Fine Arts v. M/ s. H.M. T. Madras (1991 (1) CPJ 330). In this case, one Mrs.Shanta Manuel had purchased one paper copier from the respondent and installed the same in her premises. The National Commission dealt with the case in the following words: In the case now before us, it is clearly established by the materials on record that the purpose of the purchase of the paper copier by Mrs. Shanta Manuel was only to enable to earn her livelihood by the process of self employment. Such being the factual position Mrs.Shanta Manuel cannot be said to have purchased the machine for a 'commercial purpose' inasmuch as the basic prerequisite of large scale trading or business activity for purpose of making profit is totally absent. We hold that the view concurrently expressed by the District Forum and the State Commission that the complainant is not 'consumer' entitled to invoke the jurisdiction of the consumer forum is incorrect and the said finding will stand set aside. 23.Though rendered earlier to the 1993 Amendment, these deci ..... 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