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Thursday, November 19, 2015

A PRIVATE LIMITED COMPANY USING SERVICES IS A BODY CORPORATE AND NOT A NATURAL PERSON WHO NEEDS TO EARN HIS LIVELIHOOD

The complainant a private limited company availing services of bank for business purposes, its complaint is not maintainable before the Consumer Forum. The company is a body corporate and not a natural person who needs to earn his livelihood.

M/s Recorders and Medicare Systems Pvt. Ltd. through its Director and authorized signatory, Shri Jalesh Grover, has filed complaint before the National Consumer Disputes Redressal Commission, under section 21 of the Consumer Protection Act, 1986 against the State Bank of Patiala, claiming deficiency on the part of the respondent/opposite party bank on account of its failure to renew the insurance policy which it had been doing in its capacity as Monitoring Institution of the complainant Company and for which it had charged fees as consideration for its services.

Since the services of the respondent Bank have been availed of by the complainant for business/commercial purposes, its complaint is not maintainable before the consumer Fora under the Consumer Protection Act, 1986 in view of the provisions of section 2 (1) (d). Although the explanation appended to section 2 (1) (d) of the Act provides that the "commercial purpose" does not include the services availed by the person exclusively for the purpose of earning his livelihood by means of self-employment. However, the explanation restricting the scope of the commercial purpose is of no avail to the complainant because complainant is a body corporate and not a natural person who needs to indulge to earn his livelihood. In view of this, we are of considered view that the complainant is not covered under the definition of consumer as defined under section 2 (1) (d) (ii) of the Act and as such the complaint is not maintainable before the consumer Forum.


The above was held by the National Consumer Disputes Redressal Commission (NCDRC) in M/s. Recorders and Medicare System Pvt. Ltd Vs State Bank of Patiala (SBP) and others.

Prepared by: S. Hemanth