Onus of proving commercial purpose rests with service provider, not consumer: DCDRC

In a landmark order, the State Consumer Disputes Redressal Commission (DCDRC) has ruled that the onus of proving the ‘commercial purpose’ rests with the service provider and not the consumer.
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THIRUVANANTHAPURAM: Persons buying goods or services for commercial purposes are not covered under the Consumer Protection Act. In many cases, this provision helps service providers reject compensation claims raised by customers for deficiency in service.

In a landmark order, the State Consumer Disputes Redressal Commission (DCDRC) has ruled that the onus of proving the ‘commercial purpose’ rests with the service provider and not the consumer.

The order came on an appeal petition filed by Kozhikode-based Southern Diesels against an order by the Kasaragod District Consumer Disputes Redressal Commission (DCDRC).

The DCDRC had found deficiency in service on the part of Southern Diesels in the after-sale service of a generator it sold to a Kasaragod native.

The district commission asked the firm to refund the price of the generator after deducting 25% for depreciation, Rs 50,000 as compensation and Rs 5,000 as costs.

The Kasaragod native had purchased a Mahindra Power Generator for Rs 3.1 lakh. He said the firm did not provide proper service during the warranty period. The firm, however, contended that the complainant would not fall under the purview of ‘consumer’ as provided under Section 2(1)(d) of the Consumer Protection Act, 1986, as the generator set was purchased for the business purpose of the complainant. The commission bench comprising its president Justice B Sudheendra Kumar and member Radhakrishnan K R rejected this argument.

“Apart from contending that the generator set was purchased for commercial purpose, no material was produced by the opposite party to prove the said contention. A mere plea is not sufficient,” their order said.

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