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Indian Laws - Highlights / Catch Notes

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Purchase of goods by a company for personal use of its directors ...


Purchase of goods (CAR) for directors' personal use isn't "commercial purpose" under Consumer Act. Profit nexus key, not self-employment.

Case Laws     Indian Laws

July 11, 2024

Purchase of goods by a company for personal use of its directors does not constitute "commercial purpose" u/s 2(1)(d) of the Consumer Protection Act, 1986. Commercial purpose requires a close nexus with profit-generating activity. If the dominant intention is personal use, it does not qualify as commercial purpose, irrespective of self-employment considerations. Determination is case-specific. Purchase of luxury cars for directors' use is not commercial purpose. Non-disclosure of airbag functioning details constitutes unfair trade practice. Compensation awarded for deficient services regarding airbag non-deployment. National Commission's well-reasoned judgment upheld.

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