Commercial Projects for Livelihood Covered by Consumer Courts

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Last Updated on June 20, 2024 by Satish Mishra

Commercial Projects Bought For Livelihood Covered Under Consumer Act.

Consumer Protection Act does not deal with the goods or services to be purchased for commercial purpose unless it is purchased for the purpose of earning a livelihood.

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The honourable National Commission stated that the intention behind the amendment of the Parliament is to deny the benefits of the act to persons purchasing goods either for the purpose of resale or for the purpose of being used in profit making activity engaged on a large scale . Thus the persons who purchase goods for consumption or use in the manufacture of goods or commodities on a large scale with a view to make profit will all fall outside the scope of definition of consumer.

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Commercial purpose and livelihood are not defined under Consumer Protection Act.

  • The Supreme Court stated that if the goods have been used by the purchaser himself for commercial use then he is a consumer under the act if he engage some other person to operate that goods then he will not come under definition of consumer.
  • Person is to be compensated for the defect in the part of any machine during warranty period as he is a consumer .
  • If purchaser take help or assistance to operate a machine he is still a consumer.

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Parliament included only those people in the definition of consumer who obtains goods or services for reselling it or for commercial purpose but in 2002 amendment in Consumer Protection Act the definition of consumer is buying goods for self consumption and not any other economic activists.

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Exception.

  1. Beneficiary person.
  2. If any defect comes in product within warranty period even if goods have been brought for profit making still person is consumer.
  3. When goods and services are purchased for livelihood.

Entire facts, circumstances and evidences are seen to distinguish between who is consumer and what is commercial purpose.

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The Courts and National Commission take care when consumer complaints will be maintainable even if meant for commercial purpose.

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