Order Name: Anchrom Lab Supplies & Anr Vs. Aryavaidyasala
Case No.: F.A. No. 1429/2017
The National Consumer Disputes Redressal Commission, led by Dr. Sadhna Shanker, ruled that a public charitable trust does not qualify as a “person” under the Consumer Protection Act. Consequently, such trusts cannot file consumer complaints.
### Key Facts
A charitable trust dedicated to producing quality Ayurvedic medicine purchased equipment worth Rs. 56 lakhs from a dealer. Despite multiple attempts by technical experts to install the equipment, it remained non-functional and incompatible with the existing setup. The trust claimed the equipment was defective and approached the State Commission of Kerala. The State Commission partly favored the trust, directing the manufacturer to refund Rs. 56 lakhs with 12% annual interest and an additional Rs. 10,000 as costs. Dissatisfied with this decision, the manufacturer appealed to the National Commission.
### Arguments from the Manufacturer
The manufacturer contended that as a public trust, the complainant did not meet the definition of a “person” under Section 2(1)(m) of the Consumer Protection Act. Therefore, the trust could not be classified as a “consumer,” making the complaint void. They further argued that the State Commission lacked the financial jurisdiction to hear the case. Additionally, the warranty for the equipment had expired, as the installation occurred beyond the warranty period. Hence, the dealer claimed no liability for any service deficiencies.
### National Commission’s Observations
The National Commission noted that a charitable trust is not considered a “person” under Section 2(1)(m) of the Consumer Protection Act. Referencing the Supreme Court judgment in Pratibha Pratisthan and Ors. vs. Manager, Canara Bank and Ors. (2017) 3 SCC 712, the Commission concluded that the State Commission’s order was legally invalid. Consequently, the appeal was allowed, and the State Commission’s order was overturned. However, the complainant was given the option to seek redress in a more appropriate forum.
### Takeaway
This ruling underscores the importance of understanding who qualifies as a “consumer” under the Consumer Protection Act. Public charitable trusts do not fall under this category and must seek alternative legal avenues for their grievances.
