The Apex Court suggested Today (May 14th) a review of its 1996 ruling regarding the application of the Consumer Protection Act to medical professionals. Previously the court had determined that services provided by doctors fall under the Act if payment is involved. Court noted no legislative intention to include professionals within the Act’s scope. Hence, they proposed reconsidering the decision and referred the matter to the CJI.
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NEW DELHI: The Supreme Court today, expressed the view that its 1996 ruling on the applicability of the Consumer Protection Act (CPA) to medical professionals warrants re-evaluation. This stance emerged during the Court’s deliberations on whether services provided by advocates fall within the ambit of the Consumer Protection Act.
In the landmark case of Indian Medical Association v VP Shantha, the apex court had previously determined that services offered by doctors and medical practitioners are subject to the provisions of the Act if they are provided in exchange for payment.
However, a Bench comprising Justices Bela Trivedi and Pankaj Mithal deliberated on the legislative intent behind the Act, highlighting a divergence of opinion.
“There is nothing to suggest that the legislature intended to include professionals under the Act. The very purpose of the Act was to protect consumers from unfair trade practices,”
-remarked the Court, signaling a need for reassessment.
Consequently, the Court advocated for a reconsideration of its earlier decision and urged the Chief Justice of India (CJI) to refer the matter to a larger bench for comprehensive review.
In its assessment, the Court drew a distinction between the legal profession and business activities, emphasizing the specialized skills and rigorous training integral to legal practice.
Consequently, the Court ruled that legal professionals cannot be equated with businessmen under the purview of the CPA, thereby excluding legal services from its ambit.
This pronouncement not only addressed the specific issue of lawyers’ services but also prompted a reevaluation of the precedent set in Indian Medical Association v VP Shantha. The genesis of this reevaluation stemmed from a 2007 ruling by the National Consumer Disputes Redressal Commission (NCDRC), which asserted that legal services fell within the jurisdiction of the Consumer Protection Act, citing the bilateral monetary contracts between clients and lawyers.
The Supreme Court, in response to the NCDRC’s ruling, intervened by issuing a stay on April 13, 2009, temporarily suspending the application of the Act to legal services pending further judicial consideration.
This evolving legal discourse underscores the nuanced interpretation of consumer protection laws vis-à-vis professional services, reflecting the judiciary’s commitment to ensuring equitable and informed legal frameworks that balance consumer rights with professional obligations.
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