Anurag purchased a bottling machine and appointed Anuj exclusively to operate the machine. Explain, whether Anurag is a consumer under Consumer Protection Act, 2019. If he purchases and operates the machine by himself, w

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2024
Anurag purchased a bottling machine and appointed Anuj exclusively to operate the machine. Explain, whether Anurag is a consumer under Consumer Protection Act, 2019. If he purchases and operates the machine by himself, will he be considered as consumer.

Answer & Explanation:

A purchase of goods can be said to be for a 'commercial purpose' only if the goods have been purchased for being used in some profit-making activity on a large-scale, and there is close and direct nexus between the purchase of goods and the profit-making activity. In Laxmi Engineering Works v. P.S.G. Industrial Institute, Supreme Court held that the Consumer Protection Act is clarificatory in nature. It observed that whether the purpose for which a person has bought goods is a 'commercial purpose' is always a question of facts and to be decided in the facts and circumstances of each case. If the commercial use is by the purchaser himself for the purpose of earning his livelihood by means of self-employment such purchaser of goods would yet be a consumer. The Supreme Court further observed that if a person purchased a machine to operate it himself for earning his livelihood, he would be a consumer. If such person took the assistance of one or two persons to assist him in operating the machine, he would still be a consumer. But if a person purchases a machine and appoint or engage another person exclusively to operate the machine, then such person would not be a consumer. Thus, Anurag is not consumer in first case and in second he is consumer.

Topics: Business Laws

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