Monday, August 10, 2009

The scope of Consumer Protection Act

The scope of the Consumer Protection Act got wider on Friday when a Division Bench said "buyers of goods or commodities for ‘self consumption’ in economic activities in which they are engaged would be consumers as defined in the Act (Consumer Protection Act, 1986)”.

The observation was made by the Division Bench of Justice S. B. Sinha and Justice Deepak Verma while hearing a case in which the heir of a purchaser of a truck had approached the country's top court with a claim for damages due to delayed delivery of the necessary documents of the truck, which had been purchased at an auction after its previous owner defaulted in paying its installments.

The court observed that while enacting the provision of the Act, Parliament wanted to exclude from the scope of the definition (of consumer) the persons who obtain goods for resale and also those who purchase goods with a view to use them for carrying on any activity for earning.