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Sylvia (MBA Student)     25 February 2014

Consumer protection act 1986

 

Can a commercial establishment file a consumer complaint under the Consumer Protection Act, 1986 against another company for faulty goods or services provided?

Does it matter if these particular faulty goods were being used in their commercial premises or not?

As per the act, a person using the goods for commercial purposes is not a consumer.

However, suppose a company maintains a corporate guesthouse and installs a central AC system in this guesthouse. Can such a company sue the manufacturers if this AC system becomes faulty? Will they be considered as consumers under this act?

Please state any similar case laws if possible. 

Thanks in advance!!



Learning

 2 Replies

nikhil singh (Advocate)     25 February 2014

Its very clear from the act. When you read the Sec 2 of CPA it clearly says that Explanation.— For the purposes of this clause, “commercial purpose” does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment.

Therefore you are the consumer.

For further assitance you may call 

Nikhil Singh (Advocate)

9352444446

Advocate Bhartesh goyal (advocate)     26 February 2014

No,company can not sue for defective A.C as it was purchased by company for commercial purpose [installed in guest house] and not for earning livelihood by a person [self employment] so provision of sec 2 of CPA does not attract.


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