The Supreme Court observed Today (Sept 11) that it was an important issue and posted the matter for hearing on September 18. The Court was hearing a batch of appeals against several decisions of the National Consumer Disputes Redressal Commission (NCDRC), all of which raised a common question of law.
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NEW DELHI: The Supreme Court of India is set to delve into a significant legal question: whether a trust can be considered a ‘consumer‘ under Section 2(1)(d) of the Consumer Protection Act, 1986. This issue has broad implications, as it may affect numerous cases involving trusts across the country.
A three-judge Bench comprising Justices Abhay Oka, Ahsanuddin Amanullah, and Augustine George Masih has scheduled the matter for a hearing on September 18.
“This is an important issue. There are so many matters which will come up on this,”
-remarked Justice Oka during the hearing.
The case before the Supreme Court involves a series of appeals challenging various rulings of the National Consumer Disputes Redressal Commission (NCDRC), all of which raised the common legal question of whether trusts can be classified as ‘consumers‘ under the Consumer Protection Act.
The lead case concerns the Tara Bai Desai Charitable Trust, which filed a complaint under the Consumer Protection Act alleging a deficiency of service in the installation of an elevator in the trust’s hospital premises. In 2015, the District Consumer Disputes Redressal Forum ruled in favor of the trust, allowing the complaint.
However, the State Consumer Forum reversed this decision, holding that a trust is not a ‘consumer.’ The NCDRC later upheld the State Forum’s ruling, dismissing the trust’s complaint.
Displeased with these rulings, the Tara Bai Desai Charitable Trust approached the Supreme Court to challenge the NCDRC’s decision. The question of whether trusts fall under the definition of ‘consumer’ as outlined in Section 2(1)(d) has now come before the apex court for a final determination.
Several other cases involving public trusts have similarly been dismissed by the NCDRC on the same grounds. The NCDRC has consistently held that trusts are not ‘consumers’ based on the Supreme Court’s 2017 ruling in Pratibha Pratisthan v. Manager, Canara Bank.
In that landmark case, the court held that
“a trust is not a person and therefore not a consumer.”
Consequently, it was concluded that a trust cannot file a consumer complaint under the Consumer Protection Act.
This legal interpretation, which prevents trusts from seeking redress under consumer law, is now being questioned. The upcoming hearing on September 18 could lead to a pivotal ruling that may either affirm or overturn the current legal stance on this matter.
If the Supreme Court revises its position, it could open the doors for trusts to lodge consumer disputes in the future, altering the legal landscape for charitable and public trusts.
The matter has garnered attention due to its potential impact on numerous trusts across India, many of which engage with services and products like any other consumer but have been excluded from seeking remedies under the Consumer Protection Act.
All eyes will be on the Supreme Court as it addresses this important legal question in the upcoming hearing.
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