Consumer Protection Act, 1986

Section 2(d) Consumer Definition of Exclusion of Persons buying goods for resale and commercial purpose-A person who buys goods and uses exclusively for earning his livelihood is not excluded from the definition of Consumer Commercial Purpose Determination depends on facts of each case-Universal Turning Central Machine Purchase for manufacture of machine parts Held on facts that purchase was not for earning livelihood by means of self employment Buyer Held not Consumer.

Explanation to S.2(d) (As inserted by Amendment Act 50 of 1993)- Held clarification in nature and applicable to all pending proceedings-Held Law is not changed by the Explanation.

Sections 3, 9, 13, 15, 17, 18, 19, 21, 23, 24 and 25.

Forums created under Nature of Held Quasi Judicial Tribunals and not Courts.

District Forums-State and National Consumer Commissions-Orders passed by Finality Issues decided by these forums cannot be adjudicated in Civil Courts-They can be questioned only in the manner provided by the Act.

The appellant-concern, a small scale industry established under the Employment Promotion Programme, purchased one PSG 450 CNC Universal Turning Central Machine from the respondent for carrying on business of manufacture of machine parts. It filed a complaint in the Maharashtra Consumer Disputes Redressal Commission against the respondent and claimed an amount of Rs. 4 lakhs alleging that it had suffered serious financial loss on account of defective functioning of the machine. Subsequent to the filing of the complaint an Explanation was I added to Section 2(d) of the Consumer Protection act, 1986 by Amendment Act 50 of 1993 which stated that "for the purposes of such-clause (i) 'commercial purpose' does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment". The respondent contested the case stating that the appellant purchased the machine for commercial use and it was not a consumer within the meaning of S.2(d) of the Act. However, the Commission allowed the claim in part i.e. for Rs. 2.48 lakhs. On respondent's appeal the National Consumer Commission held that the complainant purchased the machinery for commercial purpose and it was carrying on the business on a large scale for the purpose of earning profit, therefore it was excluded from the purview of the definition of Consumer.

In appeal to this Court it was contended that (i) the appellant purchased the machinery for the purpose of livelihood; therefore the purpose for which the machine was purchased cannot be called a 'commercial purpose'; (ii) the appellant cannot be said to be carrying on business of manufacture of machine parts on a large scale.