Order Name: East India Transport Agency vs Dhariwal Industries Ltd. and Anr.
Case No.: First Appeal No. 232 of 2019
Here’s a simple breakdown of a recent decision by the National Consumer Disputes Redressal Commission (NCDRC), a significant body that deals with consumer complaints in India. The crux of the matter was about who can be considered a ‘consumer’ under the Consumer Protection Act, 2019.
To give you some background, Dhariwal Industries had a deal with East India Transport Agency to deliver 350 cartons of ‘Gutkha’ (a type of tobacco product) to Kolhapur. The Transport Agency was responsible for the delivery but unfortunately, the consignment never reached its destination. It turned out that the consignment was stolen while still in the Agency’s care.
Despite admitting their mistake and issuing a no-delivery certificate, the Transport Agency didn’t compensate Dhariwal for the lost consignment. So, Dhariwal turned to their insurer, Bajaj Allianz General Insurance Company, with whom they had taken out a Marine Insurance Policy. The insurance company settled the claim by paying Dhariwal Rs. 28,72,142/-.
Now here’s where it gets interesting. Once the claim was settled, Dhariwal gave the insurance company the right to recover the claim amount from the Transport Agency. Both Dhariwal and the insurance company then filed a complaint against the Transport Agency in the State Consumer Disputes Redressal Commission, Maharashtra. The State Commission ruled partially in their favour, ordering the Transport Agency to pay the insurance company the claim amount and an additional Rs. 25,000/- as litigation costs.
Not happy with this ruling, the Transport Agency brought the case to the NCDRC. Their argument was that Dhariwal, being a commercial entity, was not a ‘consumer’ as defined by the Consumer Protection Act. They also argued that the insurance company, having been given the right to recover the claim amount, was also not a ‘consumer’.
The NCDRC agreed with the Transport Agency. It held that Dhariwal, due to its commercial activities, did not qualify as a ‘consumer’ under the Act. Similarly, the insurance company, acting on behalf of Dhariwal, was also not a ‘consumer’. As a result, the NCDRC concluded that both Dhariwal and the insurance company could not file a consumer complaint in this context.
This case highlights the importance of understanding the legal definition of a ‘consumer’. Businesses engaging in commercial activities for profit cannot be considered ‘consumers’ under the Consumer Protection Act, 2019. This can have implications when it comes to filing complaints and seeking redressal under consumer protection laws.
