pravin karande (lawyer) 13 December 2013
A partnership firm has purchased a fire policy from insurance company. Company has repudiated a claim on misrepresentation ground. Firm has filed a complaint against company for claim. Company in his say, that firm can not be a consumer under the definition stated in consumer protection act. Is this correct stand?
Divya Jyoti Jaipuriar (Advocate/ 09868002365) 13 December 2013
That's not correct. The definition of Consumer under Consumer Protection Act means a "person who buys any good... and/or avails services...". The Act does not define a person, but at the same time, the Act does not restrict its applicability to physical persons.The only restriction under this Act is that the person should not use the goods/ services for commercial purposes.
In absence of any specific definition of the term "person" under the Consumer Protection Act, one has to see its definition in General Clauses Act. General Clauses Act defines the term "person" to include any company or association or body of individuals, whether incorporated or not.
Secondly, there are a number of cases in NCDRC and other state forums, where Companies have successfully challenged the action of insurance companies and got favourable orders. To the best of my knowledge, NCDRC has never suggested that Companies are not consumers.
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