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anand (legal advisor)     12 February 2010

is buyer of a machine is consumer or not

if A buys a simple machine which is fully automatic and he lent advance all the amount to the supplier for the supply of machine and now the supplier is not giving him the said machinery. what all remedy he is having to recover his money.



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 8 Replies

Arvind Singh Chauhan (advocate)     12 February 2010

What the supplier has done purly a crime of cheating, buyer can regisyer FIR against him. But it is not clear whether buyer has receipt of payment or not?. Buyer have  remedy in consumer forum also.

Daksh (Student)     13 February 2010

Dear Anand,

A clear case of deficiency of service and unfair trade practice is made out. 

Best Regards

Daksh

subhash kumar (advocate)     13 February 2010

first you serve him with the demand notice , if he not comply than can file a case under consumer act for decicienty of services

V. VASUDEVAN (LEGAL COUNSEL)     13 February 2010

 If the machine is bought for commercial purpose, the consumer remedy is not available.

vasudevan

anand (legal advisor)     13 February 2010

hey everyone thanks for the response and but the real issue can a buyer of a machinery is consumer can anyone give me a link of any judgement in which buyer is consumer or not...plz if any

Sagar Bhatia (Lawyer)     13 February 2010

First of all u have to see the purpose for buying machine..means if buyer intended to purchase it for earning livelihood or intended to expand business i.e. for earning profits from business (commercial purpose). If it is for earning livelihood, thenm surely the buyer can file consumer complaint but in case it is for commercial purpose than as per Section 2(d)(ii) of Consumer Protection ACt, the buyer does not fall under the definition of Consumer. Then civil remedy is to file suit for recvoery.

Arvind Singh Chauhan (advocate)     13 February 2010

Please go through the para 22 to 26 of attached judgment-

 

SC held- "Buyers of goods of commodities for self consumption in economic activities in which they are engaged- Would be consumer as defined in the Act- Purchaser of truck by it’s buyer purchased for consideration and use exclusively for the purpose of earning his livelihood by means of self employment- Such purchaser would fall in the category of a consumer, under explanation to Sec 1 (d) of the Act- Even if such purchaser was to employ a driver for running the truck- Same would not changed the manner in any case- Even then he would have continued to earn his livelihood from it and of course, by means of self employment.


Attached File : 38 38 consumer.pdf downloaded: 107 times

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     13 February 2010

UNDER THE CPAct, the Seller is the "service provider"  AND  the buyer is a  "Consumer",  ALWAYS.

 

example :
1.  A sewing machine is purchased with a intent to making a living out of it.   NOW,  here the seller cannot be classified as anything else  but  a  "Service Provider"  and the conditions of the Contract Act are fulfilled, as soon as payment (consideration)  is made.  Other regulatory condtions under the I.Tax, S.T., S&E, Excise, Octroi, Service Tax etc....  are fulfilled automatically, by legal default.

 

2.  Buyer pays the payment (consideration) to the "service provider"  and by legal default automatically acquires the status of  "Consumer".

3.  It is immaterial to state that the buyer is not a Consumer and the onus to prove the same will be on the Seller and not the Buyer.  If the Seller wishes to prove that the buyer is not a Consumer  as defined under the CPAct,  then he will have to produce commercial usage pattern of the Buyer (consumer) for the said machine, which means  Income tax assessments, Sales Tax returns,  S&E licences,  P&T  returns and certificates,  service tax returns, electricity bills showing commercial usage rates and other business receipts of the Consumer.
HOWEVER this is all subject to the intial honouring of machine-product supply committment.  If the machine is not at all supplied by the seller, then the seller has no rights to dispute the buyers right as a Consumer.

3.  The seller is in violation of all the laws (as stated in point no. 01) and a private complaint in a criminal court should be filed for Fraud, Cheating & Criminal Intimidation.  A civil complaint may be filed in the Civil court for loss of projected income due to non-availability of machine.  Further the same issue can be filed before the Consumer Forum for deliberate negligence in honouring committment to a Consumer and for  deficiency in service in not honouring goods supply committment.  All above will require appropriate pre-notices, bills & receipts and other documentary evidences.

HOWEVER :
The above is applicable if proved that the Sewing machine is not bought in large numbers for industrial usage.  Please note that there is a huge difference in Commercial usage criteria and Industrial usage criteria.

Keep Smiling .... Hemant Agarwal

 


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