The Supreme Court of India is set to examine a significant legal issue regarding whether a trust can be categorized as a ‘consumer’ under the Consumer Protection Act, 1986, as per Section 2(1)(d).
This important case, titled Administrator Smt. Tara Bai Desai Charitable Ophthalmic Trust Hospital, Jodhpur v. M/s Supreme Elevators India Private Limited & Others, and several related matters, is scheduled for hearing on September 18, 2024.
A three-judge bench comprising Justices Abhay Oka, Ahsanuddin Amanullah, and Augustine George Masih will be presiding over the case, which could have far-reaching consequences for trusts across the country.
During today’s hearing, Justice Oka emphasized the importance of the matter, stating, “This is an important issue. Many similar cases will emerge based on this ruling.”
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Case Background
The dispute arose when the Tara Bai Desai Charitable Trust filed a complaint under the Consumer Protection Act, alleging a deficiency in service related to the installation of a lift at its hospital. In 2015, the district consumer forum ruled in favor of the trust.
However, this decision was overturned by the State Consumer Disputes Redressal Commission, which ruled that a trust does not qualify as a ‘consumer.’ The National Consumer Disputes Redressal Commission (NCDRC) upheld this decision.
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Supreme Court’s Involvement
The trust has now escalated the matter to the Supreme Court, contesting the earlier rulings.
This case is critical because the NCDRC, in its decision, relied on the Supreme Court’s previous judgment in Pratibha Pratisthan v. Manager, Canara Bank (2017), which held that a trust is not a ‘person’ and therefore cannot be a ‘consumer’ under the Act.
Several other similar cases, involving trusts whose complaints were dismissed by the NCDRC on the same grounds, will also be affected by this ruling.
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The Court will now deliberate on whether trusts can be considered ‘consumers’ and can, therefore, file complaints under the Consumer Protection Act.
The next hearing on the matter is scheduled for September 18, 2024.
Party and Bench Details:
- Case Title: Administrator Smt. Tara Bai Desai Charitable Ophthalmic Trust Hospital, Jodhpur v. M/s Supreme Elevators India Private Limited & Others
- Bench: Justice Abhay Oka, Justice Ahsanuddin Amanullah, and Justice Augustine George Masih