Consumer Act not covering disputes of commercial nature: NCDRC

Disputes of commercial nature do not come under the ambit of the Consumer Protection Act, the apex consumer body has said while refusing to grant any relief to a partnership firm over non-allotment of land.

Disputes of commercial nature do not come under the ambit of the Consumer Protection Act, the apex consumer body has said while refusing to grant any relief to a partnership firm over non-allotment of land.

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"It is clear beyond any pale of doubt that the service obtained even for a consideration from the petitioner is for a commercial purpose and the dispute does not fall within the domain of consumer fora," the National Consumer Commission said.

The Commission, comprising Members Justice B N P Singh and S K Naik, passed the order on a petition of the Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO) seeking quashing of the lower fora's decision, asking it to allot the industrial plot to a partnership firm.

"A plain reading of these provisions (section 2(m) of the Factories Act) makes it clear that the intention of the complainant is far from earning any livelihood by self-employment but is purely intended to set up a manufacturing unit to earn profit," it said while dismissing complaint.

The NCDRC said that after the 2002 amendment in the Act, any person who avails any service for a consideration, if it relates to a commercial purpose, except on the ground of earning his livelihood by means of self-employment, would not fall within the definition of a "consumer".

The firm, Diksha Enterprises, applied for the allotment of an industrial plot for the purpose of establishing a factory.

It approached the consumer forum after it was not given allotment. The Alwar District Forum ordered the petitioner to allot the plot in its favour, the direction which was upheld by the Rajasthan State Consumer Commission.