Deepak (Self Employed) 10 January 2013

Can a company be consumer

i and my company bought a property for opening IT office. the builder has not completed the building and harrasing us and not completing the construction of the property for last 4 years. my question is

Whether the company is treated as consumer?

Whether investing in property for development of software be treated as "commercial purpose"?

if any of the question is okay, please give relevant judgements.

Thank you.

A harrased consumer

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6 Replies

(Guest)

@Querist,

1.Yes.Case law given below.

Karnataka Power Transmission Corpn. & Anr. vs. Ashok Iron Works Pvt. Ltd.

2. Your Query is of a vague kind. However,check your state Commercial shops and establishment Act.

Note: All replies should be taken as per the declartion given in my profile page.

Thanks,

Regards,

1 Like

v.jayachandran (advocate) 11 January 2013

for your 1st question ,

a company is a seperate legal entity and its an artificial person and it can sue and can be sued. so it comes under perview of artificial person and it can be a consumer.

for your second question,

yes, anything other than residential purpose will be considered as commercial purpose only and so the IT Park will be considered as Commercial Purpose only.

for further queries , you can mail me at

advocatechandrureddy@gmail.com

1 Like

Chetan Joshi (Advisory/Advocacy) 11 January 2013

Yes a company can be a consumer in the light of seperate legal entity.

The expenditure is of capital nature and hence commercial...

Regards

Chetan(dot)7679(at)gmail(dot)com

1 Like

Advocate Bhartesh goyal (advocate) 11 January 2013

[1] Yes, company may be consumer if it avails paid services and the service provider fails to provide company the required services.

[2] the company had invested the money in property to develop the software buisness for earning profit on large scale which is obviously a commercial purpose and for the same can not filecase against the builder in Consumer Forum for the deficit services.

1 Like

Deepak (Self Employed) 11 January 2013

I would like to thank everybody who has replied. But with replies i have one more question in my mind.

Whether the term "commercial purpose" would apply even before the possession taken and would not tantamount to defeciency in service for late delivery.

Thank you once again.

(Guest)

@Querist,

It all depends upon the circumstances and facts of the case to decide whether the purpose behind such buying reflects the commercial nature of transaction or not. In your case,if you bought the property in the name of company, it may be derived from the normal circumstances that the purpose was commercial.

Thus now it's upon you to consider your case in light of the above said words. Please allow me to end this thread(If you consider the limitation of professional advice on a online legal forum).

Note:-This reply should be taken as per the declaration given in my profile page.

Thanks,

Regards,