Ramesh purchased a tractor from Mahi Ltd. for tilling the land but he used it in idle time for transportation of agricultural produce on hire. Some defects were developed in the engine of the tractor. He complained to Ma

CS Executive · Economic and Commercial Laws · PYQS · June 2016
Ramesh purchased a tractor from Mahi Ltd. for tilling the land but he used it in idle time for transportation of agricultural produce on hire. Some defects were developed in the engine of the tractor. He complained to Mahi Ltd., but all in vain. Then he filed a suit in Consumer Disputes Redressal Forum for damages caused by the defects. Mahi Ltd. pleaded that Ramesh is not a 'consumer' within the definition of section 2(1)(d) of the Consumer Protection Act, 1986, as he is using the tractor for commercial purposes. Whether Ramesh will succeed in his case? Refer to relevant provisions of law in support of your answer with reference to case law, if any.

Answer & Explanation:

In the case of Bhupendra Jang Bahadur Guna v. Regional Manager and Others (II 1995 CPJ 139) , the National Commission held that a tractor purchased primarily to till the land of the purchaser and let out on hire during the idle time to till the lands of others would not amount to commercial use. In the case of Laxmi Engineering Works v. P.S.G. Industrial Institute , Supreme Court held that the explanation to Section 2(1)(d) of the Consumer Protection Act, 1986 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. Yes, In the light of the above facts and circumstances, Ramesh will succeed in his own case. He is still a consumer within the definition of Section 2(1)(d) of the Consumer Protection Act, 1986.

Topics: Consumer Protection Act, 1986

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