Law of Torts - II : Previous Year Questions (2015)

PART – A

Q1. Define consumer.

Ans. A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Q2. Define service.

Ans. According to Section 2(42) of the CPA, 2019, the term service means service of any description which is made available to potential users and include, but not limited to, the provision of facilities in connection with: -

1. Banking
2. Financing
3. Insurance
4. Transport
5. Processing
6. Supply of electrical or other energy
7. Telecom services
8. House construction
9. Entertainment

But does not include the rendering of any service free of charge or under a contract of personal service.

Q3. What is meant by restrictive trade practice?

Ans. Restrictive trade practices refer to any trade activities or business policies that hinder competition in the market or obstruct the free flow of capital or resources. Essentially, these are actions taken by companies to manipulate prices, control supply, or eliminate competitors to gain an unfair advantage. For E.g.: Price Fixing, Market Sharing, etc.

Q4. Who can establish state consumer protection council and how it can be established.

Ans. According to Section 6(1) of the CPA, 2019: Every State Government shall, by notification, establish with effect from such date as it may specify in such notification, a State Consumer Protection Council for such State to be known as the State Council.

Q5. What is maximum numbers of members in the central council?

Ans. The Central Consumer Protection Council consists of a maximum of 36 members. The Council is chaired by the Minister-in-charge of Consumer Affairs in the Central Government and includes:

1. Chairperson: The Minister-in-charge of the Department of Consumer Affairs in the Central Government.
2. Vice-Chairperson: The Minister of State in the Department of Consumer Affairs.
3. Members: 34 other members representing various interests (such as Central/State Government officials, consumer organizations, and industry representatives).

Q6. What is meant by falsification of trademark.

Ans. Falsely applying of a trademark is said: -

1. When a person deceptively applies the falsified trademark to goods/services or any packet which contains goods.
2. When a person uses that package which has a false trademark or deceptively similar trademark of the proprietor for the purpose of packaging or wrapping of goods other than the real goods of the trademark.

Q7. What is meant by Public Interest litigation?

Ans. Public Interest Litigation (PIL) refers to legal action initiated in a court of law for the enforcement of the public interest or general welfare, rather than the private interest of an individual. Unlike traditional litigation, where only the aggrieved party can file a case, a PIL allows any public-spirited individual or organization to seek justice for a marginalized group or a community that cannot access the legal system themselves (due to poverty, ignorance, or disability). It is a powerful tool used to address issues like environmental pollution, human rights violations, and government accountability.

Q8. Who is third party beneficiary?

Ans. When A hire services from B, may hire it for himself or for any other person. In such a case, the beneficiary (user) of these services is also a consumer. The person for whom the service is being availed, is known as the third party beneficiary. In short, a third-party beneficiary is a person who, while not the direct party who hired or paid for a service, is the intended recipient of that service.

Example – A takes his son ‘B’ to a doctor for B’s treatment. Here ‘A’ is hirer of services of the doctor and ‘B’ is beneficiary of these services. For the purpose of the act, both A and B are consumers. This is an exception to the rule of Privity of Contract.

Q9. Who is an involuntary consumer?

Ans. An involuntary consumer is an individual who is provided with a good or service without their prior consent or request, yet is subsequently pressured or legally obligated to pay for it.

Under the Consumer Protection Act (CPA), 2019, this concept is often linked to Unfair Trade Practices.

Example: If a credit card company activates a paid insurance plan on your account without your permission and begins charging you a monthly fee, you have become an involuntary consumer of that insurance service.

Q10. What is meant by consumer rights?

Ans. Rights are the legal shields provided to you by the state to protect you from exploitation, such as the right to safety, information, and redressal.

Section 2(9) of the Consumer Protection Act, 2019, defines "consumer rights," empowering consumers with six core protections:

1. Right to Safety
2. Right to be Informed
3. Right to Choose
4. Right to be Heard
5. Right to seek Redressal
6. Right to Consumer Education

PART – B

Q11. What is meant by complaint and complainant?

Ans. Complaint and Complainant, as under CPA, 2019:

1. Section 2(6): Complaint – the expression complaint means any allegations in writing made by a complainant that: -

1. An unfair contract or unfair trade practices or a restrictive trade practice has been adopted by any trader/service.
2. The goods bought by him or agreed to be bought by him, suffer from one or more defects.
3. The services hired or availed of or agreed to be hired or availed of by him, suffer from any deficiency.
4. A trader/service provider, as the case may be, has charged for the goods/services mentioned in the complaint, a price in excess of the price –

1. Fixed by or under any law for the time being in force.
2. Displayed on the goods or any package containing such goods.
3. Displayed on the price list exhibited by him or under any law for the time being in force.
4. Agreed between the parties.

5. The goods which are hazardous to life and safety when used, are being offered for sale to the public.
6. The services which are hazardous or likely to be hazardous to life or safety of the public when used, are being offered by a person who provides any service and who knows it is ingenious to life of public.
7. A claim for product liability action lies against the product manufacturer, seller, or service provider, as the case may be.

2. Section 2(5): Complainant – means a consumer and includes any voluntary consumer association registered under any law for the time being in force, or the central government or any state government or one or more consumers, where there are numerous consumers having the same interest or in case of death of a consumer, his legal heir or legal representative, or consumer being a minor, his parents or legal guardian in respect of commodities or services rendered to them.

Q12. Who can file a complaint to a district forum?

Ans. Under CPA 2019, the following can file complaints in a district commission (formerly forum):

1. Individual Consumers: Anyone buying goods or services for personal use, not resale or commercial purposes (Section 2(7)). Example: A shopper denied a refund for a defective phone.
2. Registered Consumer Associations: Groups like Consumer Voice can file on behalf of consumers, even non-members, for issues like mass e-commerce fraud.
3. Central or State Government: Can file to protect public interest, e.g., against unsafe products.
4. Legal Heirs/Representatives: If a consumer dies, heirs can file, like for a faulty medical device causing harm.
5. Central Consumer Protection Authority (CCPA): Can initiate class-action suits for widespread violations, e.g., misleading ads.
6. Multiple Consumers: Groups with shared issues, like defective housing projects, can file together.

Under the revised Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021, the District Commission has pecuniary jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed 50 lakh rupees.

Q13. Discuss Insurance Service under Consumer Protection Act, 1986. [CPA, 2019 in present context]

Ans. Insurance is an agreement between two parties, insurer, who indemnify (provides protection) the insured in case of any financial loss, according to the terms and conditions of the contract. If the insurance company defrauds or due to negligence of the company, the loss has been incurred by the insured, then the insurer can be sued.

CPA has the objective of providing cheap and expeditious redressal of grievance to the consumer affected by the non – performance on the part of the person providing services for a consideration.

• Case: The Divisional Manager, LIC v. Uma Devi (1991) - It was held that the nominee of insured is a consumer and entitled to maintain dispute under CPA.
• Case: Vellithody Ramkrishnan Vazhikkadavu v. Divisional Manager, M/S. New India Assurance Co. Ltd. (1992) - It has been held that the complainant getting his house insured against fire is a consumer.

Insurance Policy with Personal Accident Benefit

In Bhagchand Jain v. LIC of India and another, the insured complainant suffered injuries when travelling by bus, which got hit by a truck. The claim was rejected on the ground that disability was not of total and permanent nature.

The District Forum solely relied upon the opinion of the medical board of medical college hospital and allowed the claim. However, the State Commission set aside the order. In the instance case, the medical board specifically mentioned in its report that the petitioner sustained multiple fractures of lower extremities and had developed permanent disability in totality.

In revision petition, the National Commission held that the State Commission committed legal error by not taking into consideration the report of the medical board, and rejecting certificate issued by the doctor and the order passed by the District Forum.

Beneficiary of Insurance Policy Are Consumer, even if they are not Party to the Contract

Case: Canara Bank V. United India Insurance Co. Ltd. & Ors. (2020)

In this case, the farmers had kept their farm product (Byadgi chilly crops) in a cold storage facility (Sreedevi Cold Storage), financed by loans from Canara Bank. The cold storage, which was insured by United India Insurance, experienced a massive fire on January 13–14, 2014, destroying the produce.

The insurance company rejected the claims, arguing that the goods were not covered and that the farmers were not the insured parties. In response to the objection made by the farmers over the insurance company’s denial of claim, the State and the National Consumer Forum awarded redressal. The insurance company argued in its appeal that there was no privity of contract between the farmers and the insurance company. Because the cold storage company, not the farmers purchased the policy, they cannot be referred to as “consumers”.

The bench of Justice S. Abdul Nazeer and Justice Deepak Gupta made references to the definition of consumer under Section 2(d) (CPA, 1986) / 2(7) (CPA, 2019) of the act and noted that it was very broad and included not only the person who hires or avails the services for consideration, but also the beneficiary of those services is considered as a consumer.

In light of these facts, the bench decided that the beneficiaries who can profit from the insurance that the insured has purchased, are included in the concept of the consumer. According to CPA, a recipient of the services who is not the insured, is considered a consumer. The Supreme Court affirmed that farmers holding warehouse receipts are beneficiaries of the insurance service provided to the cold storage and have the right to claim insurance, making them "consumers" under the Consumer Protection Act. The insurance company was ordered to pay the claim amount, which would first be applied to satisfy the farmers' loan dues with Canara Bank.

Importance of Consumer Protection and Insurance Services

Anybody who purchases goods or services for their own consumption without planning to resell is considered a consumer. Together, these individuals make up the largest economic group and are impacted by practically every economic decision made by the public and private sectors. Listening to their needs and complaints is essential. Insurance can be thought of as a contract in which one party deposits a particular amount and the other agrees to pay the other back for specific types of losses, should they arise. Any nation's economy greatly benefits from a robust and growing insurance industry. The demand for consumer protection has grown as a result of the insurance industry's expansion and sophisticated marketing and sales techniques. The Indian Constitution's union list includes insurance.

Mostly these consumers are layman and lack understanding of important jargons and end up in problems. These customers frequently struggle to comprehend the insurance's terms and conditions and have trouble interacting with big businesses. Both public and private entities are involved in the insurance industry. A lack of standard operating standards could result in consumers spending the majority of the insurable amount in legal proceedings and engaging in protracted legal battles with large insurance companies. This is the point at which consumer protection becomes necessary. Consumers' interests are safeguarded and their right to consumer remedy is granted under the IRDAI Act and the Consumer Protection Act of 2019. It would give customers rights to shield them from unfair business practices and fraud when they purchase insurance.

Q14. Discuss consumer rights.

Ans. In the modern marketplace, the consumer is often called "King", but even kings need a legal framework to prevent them from being swindled. Under the Law of Torts and the Consumer Protection Act (CPA), 2019, this relationship is governed by a balance of power.

The CPA 2019 was enacted to replace the outdated 1986 version, modernizing the law to include e-commerce, direct selling, and stricter penalties for misleading advertisements. However, the law operates on a "two-way street" principle:

• Rights are the legal shields provided to you by the state to protect you from exploitation, such as the right to safety, information, and redressal.
• Duties are the responsibilities you must fulfill to be a "vigilant consumer." In legal terms, while the trend has shifted from Caveat Emptor (Let the buyer beware) to Caveat Venditor (Let the seller beware), a consumer who neglects their duties may find it difficult to seek a remedy in court.

To be truly protected, a consumer must not only know what they are entitled to receive but also what they are obligated to do. Below is an elaboration on those essential duties.

Rights of a Consumer

Section 2(9) of the Consumer Protection Act, 2019, defines "consumer rights," empowering consumers with six core protections:

1. Right to Safety – Right to safety against such goods and services which are hazardous to health and property of consumer. They should preferably purchase quality marked products, marked ISI, Agmark, etc.
2. Right to be Informed – The consumer has the right to be informed about the quality, quantity, potency, purity, standard, and police price of goods, so as to protect the consumer against unfair trade practices.
3. Right to Choose – The consumer has the right to be assure, wherever possible, access to variety of goods and services at competitive price. In case of monopoly, it means right to be assured of satisfactory quality and service at a fair price.
4. Right to be Heard – Consumers have the right to be heard. The consumers’ interest will receive due consideration at appropriate forum. There’s also right to be represented in various forums, formed to consider the consumers’ welfare.
5. Right to seek Redressal – Consumers have the right to seek redressal against unfair trade practices. It also includes right to fair settlement of the genuine grievances of the consumer. Many a times their complaint may be of small value, but its impact on the society as a whole may be very large. A consumer can claim compensation for damages caused by any product/service. He/she can file a case in consumer court against the shopkeeper/manufacturer.
6. Right to Consumer Education – The consumers have the right to acquire knowledge and skills to be an informed consumer throughout life. Ignorance of consumers, particularly of rural consumers, is responsible for their exploitation. They should know their rights and exercise them.

PART – C

Q15. How to determine negligence in medical service?

Ans. The apex court has pronounced the landmark judgement, “Indian Medical Association v. V.P. Shantha” with special reference to medical services under the CPA. Where medical services are covered under the definition of service, doctors and hospitals fall within the scope of summary jurisdiction of CPA for the grant of compensation and other relief provided by the act.

In this case, the apex court held that the person suffering any loss on account of any negligence or deficiency in such service includes rendering of consultation, diagnostics, and treatment, both medical and surgical. Professional men should possess certain degree of competence and they should exercise reasonable care in discharge of their duties. Medical practitioner doesn’t enjoy immunity and they can be sued in contract of tort on the ground that they have failed to exercise reasonable skill and care.

Components of Medical Negligence

There are 3 main components of medical negligence:

1. Existence of legal duty
2. Breach of legal duty
3. Damage caused by such breach of duty

1. Existence of legal duty – In any industry, professionals have a duty of care to uphold a certain level of care as determined by their specific field. Equally a healthcare professional is expected to meet a certain standard of care towards patients, where this standard will vary according to specific healthcare situation. Guidelines for the applicable standard of care in a given situation will take into account the medical professionals’ speciality, traditional medical practices and the skills and care that an average physician would provide in similar circumstances.
2. Breach of the legal duty – The next element of medical malpractice that needs to be proved in medical malpractice litigation is breach of legal duty. To prove that there was a doctors’ professional duty of care, we must establish that the doctor failed to exercise the standard of care or skill that would commonly be exhibited by a similar doctor in that situation. This takes into account what specialised knowledge a doctor in that situation would have. Typically, this requires expert testimony from another medical professional to establish that a standard of care was not met in your case.
3. Damage caused by such breach of duty – For a medical malpractice case to be successful, the personal injury will also have to prove that the victim was harmed by the medical negligence, leading to losses and expenses. For example: a doctor incorrectly diagnosing your condition could require you to seek additional medical treatment following the new issues caused by the mis-diagnosis, as well as any medical treatment for your original condition. If you have been negatively affected by the medical mal-practice, you are within your rights to fight to recover compensation in a medical mal-practice claim.

A medical professional or hospital shall be held liable for all actions against the patient where they have not taken proper standard of care and it has resulted in suffering on the part of the patient. The burden of proof shall lie on the complainant to prove the case of negligence. They have to first establish that there was a duty of care on part of the accused and that there was breach of such duty.

Remedies for Medical Negligence

Following are the remedies for Medical Negligence:

1. Medical council of India – An aggrieved party can file a complaint of negligence against their medical practitioner to the concerned state medical council, as they have the power to take action against the concerned doctor by cancelling or suspending their license. However, the Indian Medical Council Act does not give them the power to compensate the aggrieved party.

Note: - The Medical Council of India (MCI) has been replaced by the National Medical Commission (NMC) under the NMC Act, 2019.

2. A civil liability – An aggrieved party can approach the consumer court to file a case against the accused person or hospital. In Indian Medical Association v. V.P. Shantha, the honourable Supreme Court observed that the medical practitioners are covered under the CPA, and the medical services rendered by them should be treated as service under Section 2(42). Any matter in medical negligence on the part of the service provider will be considered as deficiency under Section 2(11).
3. Criminal liability – Under various provisions of IPC/BNS, any person who acts negligently that resulted in threat to human life or personal safety or result in death of a person, then the person shall be punished with imprisonment or fine, or both. However, the court observed that in a matter of negligence where a criminal case is being pursued, the element of men’s rea must be shown to exist.

Medical negligence causing death was previously under Section 304A of the IPC. Under the Bharatiya Nyaya Sanhita (BNS), it is now Section 106(1).

Section 106(1): Whoever causes death of any person by doing any rash or negligent act not amounting to culpable homicide, shall be punished with imprisonment of either description for a term which may extend to five years, and shall also be liable to fine; and if such act is done by a registered medical practitioner while performing medical procedure, he shall be punished with imprisonment of either description for a term which may extend to two years, and shall also be liable to fine.

Registered medical practitioner means a medical practitioner who possesses any medical qualification recognised under the National Medical Commission Act, 2019 and whose name has been entered in the National Medical Register or a State Medical Register under that Act.

Denial of Medical Services is a Violation of Human Rights

Parmanand Katara v. Union of India was one of the earliest and most landmark Supreme Court cases dealing specifically with medico-legal responsibilities and emergency medical treatment in India. In this case a public spirited person has filed a PIL under Article 32 of the Constitution. The honourable Supreme Court held that it is a right of citizen and also an obligation of the state to preserve life, and doctors at hospital are therefore required to provide medical assistance to save life. The judgement was the first initiative taken by the Supreme Court to protect the rights of the citizens as per Article 21.

In the case of “Consumer Education and Research Centre v. UOI”, the Supreme Court held that timely medical aid is an integral part of the right of life as per Article 21. Social Justice, which is a device to ensure life to be meaningful with human dignity, required for the state to provide to workmen, facilities and opportunities to reach a minimum standard of health, economic security, and civilised living.

The Supreme Court has held that denial of emergency medical care is a violation of Article 21. Hence, it is the fundamental right of the citizen to be provided with emergency services without any condition.

Q16. Explain the term unfair trade practices with appropriate case laws.

Ans. The term ‘Unfair Trade Practices’ is defined under Section 2(47) of the CPA, 2019.

It refers to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentation, false advertising, tied/tie-in selling, deceptive pricing and non-compliance with manufacturing standards. Such acts are considered unlawful by statute through the consumer protection laws.

Unfair Trade Practices may be categorised under:

1. False representation
2. Bargain price
3. Non-compliance of prescribed standard
4. Falsification of trademark
5. Unsafe and hazardous goods

1. False Representation:

The practice of making any written statement or representation which –

1. Falsely suggest that goods are of a particular standard, quality, quantity, grade, composition and model.
2. Falsely suggest any rebuilt, second-hand, renovated, re-conditioned, or old goods as new.
3. Represents that the goods or services have sponsorship, approval, or affiliation which such goods or services do not have.
4. Makes a false or misleading representation concerning the need for or usefulness of any goods or services.
5. Gives to the public any warranty or guarantee of the performance, efficiency, or length of time of a product that is not based on an adequate or proper test.

2. Bargain Price:

Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.

3. Non-compliance of prescribed standard:

Any sale/supply of goods used by the consumer, having reason to believe that goods do not comply with the standard prescribed by some competent authority in relation to their performance, composition, content, design, packaging, as are necessary to prevent the risk of injury to the person using such goods shall amount to an unfair trade practice.

4. Falsification of Trademark:

Falsely applying of a trademark is said: -

1. When a person deceptively applies the falsified trademark to goods/services or any packet which contains goods.
2. When a person uses that package which has a false trademark or deceptively similar trademark of the proprietor for the purpose of packaging or wrapping of goods other than the real goods of the trademark.

5. Unsafe and Hazardous Product:

The term hazardous goods have not been defined in the act. The dictionary meaning of the term is dangerous or risky. However, the term is used in context of goods only. A person can make a complaint of he is not informed about the hazardous nature of the goods, but the same is not true in case of hazardous services. The rationale behind the provision is to ensure physical safety of the consumer. The law seeks to ensure that those responsible for bringing goods to the market, in particular supplier, importer, or retailer and the same should ensure that while in care, these goods are not rendered unsafe through improper handling or care.

Relevant Case Laws:

1. Maruti Suzuki India Ltd. v. Rajiv Kumar Loomba (2009)

This is a landmark consumer protection case involving "unfair trade practices" under the Consumer Protection Act, 1986. It addresses whether a manufacturer can charge a consumer for equipment not provided under the guise of a "uniform pricing policy."

Facts of the Case:

The respondent (Loomba) purchased a Maruti car in Chandigarh. At the time, federal regulations required cars sold in the four major metros (Delhi, Mumbai, Kolkata, Chennai) to be fitted with catalytic converters to meet emission norms. This was not required in Chandigarh. The appellant (Maruti) charged the respondent the same price as metro customers, effectively charging an extra ₹7,000 for a catalytic converter that was not installed in his car. The District, State, and National Consumer Forums ruled in favour of the consumer, leading Maruti to appeal to the Supreme Court.

Ratio Decidendi (Reasoning of the Court):

The Court held that while forums usually don't interfere in price setting, they have full authority to intervene when a consumer is billed for a specific item not supplied. Charging for a feature not included in the vehicle is inherently deceptive and falls squarely under "unfair trade practices." Even if a uniform pricing policy existed, applying it in a way that forces a customer to pay for "nothing" is arbitrary and violates the principle of equity under Article 14.

Decision:

The Supreme Court dismissed the appeal. It upheld the lower consumer court's order directing Maruti Suzuki to refund the excess amount (₹7,000) to the consumer along with interest and costs. The Court clarified that manufacturers cannot use "policy" as a shield to justify charging for unrendered services or unsupplied goods.

2. Pepsi Co. Inc. v. Hindustan Coca Cola Ltd. (2003)

This case concerns the legality of comparative advertising and the thin line between "puffing" (extolling one’s own goods) and "disparagement" (denigrating a competitor's goods). It arose from a series of commercials released by Coca-Cola that allegedly mocked Pepsi’s brand.

Key Issues Involved: Trademark infringement (using "Pappi" for Pepsi), Copyright infringement (copying the Roller Coaster commercial/theme), and disparagement of Pepsi's product as inferior.

The court found that Coca-Cola’s commercial was a "literal imitation" of Pepsi’s original Roller Coaster commercial, including similar character dress and setting. The appeal was partly accepted. The court restrained Coca-Cola from airing the specific commercials that mimicked Pepsi’s theme and infringed on their copyright. The ruling established that comparative ads cannot be used to copy a competitor's original creative expression, upholding that "the entire theme of the advertisement and the sequence of events" cannot be stolen.

3. CCPA v. Rapido (Roppen Transportation Services Private Limited) (2025) [Misleading Advertisement]

Context: The Central Consumer Protection Authority (CCPA) investigated advertisements for "Guaranteed Auto" and "Auto in 5 min or get ₹50". The "₹50" was actually "Rapido Coins" (valid only for bike rides, expiring in 7 days), not cash, and the T&C disclaimer was in unreadable font.

Verdict: The CCPA imposed a ₹10 lakh penalty, finding that the company overstated its service capability while concealing qualifying conditions, which misled consumers into using the platform. The authority also directed the platform to ensure that any consumer who availed the offer of “auto in five minutes or get ₹50”, and did not receive the promised ₹50, shall get the amount in full without any further delay or condition.

4. Irshad Rashid Dand vs. Physics Wallah Private Limited & Anr. (2026) [Non-refund of Fees]

The complainant paid ₹35,000 for a NEET coaching course, but Physics Wallah failed to provide access to the classes. The commission deemed the retention of fees without providing services as an "unfair trade practice" and a "deficiency in service".

The court ordered a refund of the ₹35,000 fee, plus ₹50,000 as compensation for academic loss/mental agony and ₹10,000 for litigation costs (totaling ₹95,000). The ruling serves as a notable precedent in 2026 regarding the accountability of ed-tech platforms under consumer protection laws.

Q17. Discuss the jurisdiction of National commission under the Consumer Protection Act, 1986. [CPA, 2019 in present context]

Ans.

Establishment (Section 53):

The central government should by notification, establish a National Consumer Dispute Redressal Commission, to be known as the National Commission.

The National Commission shall ordinarily function at the National Capital Region and perform its functions at such other places as the central government may in consultation with the National Commission, at such places it deems fit.

Composition (Section 54):

The National Commission shall consist of: -

1. A president.
2. Members not less than 4 and not more than such number as may be prescribed.

Qualification and Appointment of the President of National Commission [Section 55(1)]:

A person shall be qualified for appointment as President of the National Commission, if he: -

1. Is, or has been a judge the Supreme Court; or
2. Is, or has been, Chief Justice of High Court.

The President of the National Commission shall be appointed by the Central Government on the recommendation of a search-cum-selection committee, consisting of the following:

1. Chief Justice of India / any judge of the Supreme Court nominated by him. (Chairperson).
2. The outgoing President of the National Commission. (Member).
3. Secretary to the Government of India, Minister of consumer affairs, food and public distribution. (Member).
4. Secretary to the Government of India, Ministry of Commerce (Department of Promotion of Industry and Internal Trade) – Member.

Qualification and Appointment of the Members:

A person shall not be qualified for appointment as a member, unless he: -

1. Is or has been a judge of High Court; or
2. Has, for a combined period of 10 years, been a DJ/ADJ; or
3. Is a person of ability, integrity, and standing and having special knowledge of, and professional experience of not less than 25 years, in economics, business, commerce, law, finance, accountancy, etc. which is useful to the National Commission.

Term of Office [Section 55(2)]:

President – for a term of 4 years or 70 years of age, whichever is earlier.

Members – 4 years or 65 years of age, whichever is earlier.

Jurisdiction [Section 58(1)]:

1. Territorial Jurisdiction – The territorial jurisdiction of the National Commission is of whole India.
2. Appellate Jurisdiction – The National Commission has jurisdiction to entertain appeals against the order of any State Commission. The appeal may be made within 30 days from the date of the order of the State Commission. However, the National Commission may entertain an appeal filed after the expiry of 30 days, if it is satisfied that there was sufficient cause for not filing an appeal within 30 days.
3. Pecuniary Jurisdiction –

According to,

CPA, 2019: above 10cr.

CPA, 1986: above 1cr.

Revised Rules, 2021 – above 2cr.

Appointing Authority:

The President is appointed by the Central Government after consultation with the Chief Justice of India.

The appointment of other members of the National Commission is made by the Central Government on the recommendation of the selection committee, consisting of the following: -

1. A person who is a judge of the Supreme Court, to be nominated by the CJI. (Chairman).
2. The secretary in department of legal affairs in the Government of India, (Member).
3. The secretary of department dealing with consumer office in the Government of India.

Q18. Discuss and explain with the help of decided cases that when a person is not a consumer.

Ans. The Consumer Protection Act (CPA), 2019, is a milestone in Indian legislation designed to protect the interests of consumers in an increasingly complex marketplace. At its core, the Act aims to provide a fast-track grievance redressal mechanism. However, to benefit from this "shield," one must first qualify as a "Consumer."

Section 2(7) of the Act defines a consumer, but just as important is understanding who the law excludes. By drawing a line in the sand, the Act ensures it remains a tool for individual protection rather than a forum for resolving complex commercial or industrial disputes.

Who is a consumer?

A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale.  Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.

Who is NOT a consumer?

Under the CPA 2019, the definition of a consumer is strictly tied to the concepts of consideration (payment) and purpose. A person is excluded from the definition of a "consumer" if they fall into any of the following categories:

1. Persons Obtaining Goods or Services Free of Charge

The bedrock of the consumer-provider relationship is Consideration. If you receive a product as a gift or avail of a service without any payment (current or promised), you are not a consumer.

Example: A patient treated for free in a charitable hospital where no one is charged cannot sue under the CPA (though they may have remedies under Law of Torts for negligence).

2. Persons Obtaining Goods for Resale or Commercial Purposes

The Act is designed to protect the "end-user." If a person buys goods to sell them again or to use them in a large-scale profit-making activity, they are considered a commercial entity, not a consumer.

Exception (Self-Employment): If a person buys a car to use it as a taxi which they drive themselves to earn a living, they are a consumer. If they buy a fleet of 50 taxis to start a company, they are not.

3. Persons Availing Services under a "Contract of Service"

There is a fine legal distinction between a contract for services and a contract of service:

• Contract for Services: (Consumer Category) You hire a professional (like a doctor or a plumber) to do a job.
• Contract of Service: (Excluded) This refers to a master-servant or employer-employee relationship. An employee cannot sue their employer under the CPA for issues related to their employment.

Relevant Case Laws

To understand the nuances, we must look at how the courts have interpreted these exclusions.

1. Franchise Holder is not a Consumer - In The General Manager, Madras Telephones v. R. Kannan, it was held that a franchise holder is an agent of the principal, not a consumer.
2. Purchase Made for Commercial Purpose, the Complainant was not a Consumer -  In Godrej Computers v. International Data Management Ltd., the purchase of a computer for commercial use disqualified the buyer from being a consumer. Similarly, photocopiers or electronic typewriters bought for business use fall outside the CPA’s protection.
3. Student is not a Consumer - In Chairman, Board of Examination, Madras v. Mohidin Abdul Quadin, the board performing a statutory duty (conducting exams) was not seen as "rendering a service" for a consumer.
4. Teachers Employed in Govt. Aided School/College are not Consumer - In Principal, RSM Inter College v. Smt. Rekha, teachers in govt-aided schools were not considered consumers in the context of their employment/service conditions.
5. Sale of Immovable Property can’t be Subject Matter of Complaint under the CPA - In Ravin Bharti Land Development and Finance Pvt. Ltd. v. Punjab National Bank, it was established that the sale of immovable property (land/buildings) does not typically fall under the CPA, as these are governed by specific property laws (and now RERA).
6. Vehicles Possessed under a Hirer Purchase Agreement, Hirer Complainant would not be a Consumer - In Tata Motors Ltd. v. Sant Bahadur Singh, a person possessing a vehicle under a hire-purchase agreement (where ownership hasn't transferred) was found not to be a consumer in that specific context.
7. Complaint by Wife of a Govt. Servant, she is not a Consumer - In Manoranjan Tiwari v. State Govt. of Rajasthan, it was held that the wife of a government servant (complaining about his service conditions/benefits) does not qualify as a consumer.

One thing is plain and clear from the decided cases that what is important to decide is - Whether a particular good is used for commercial purposes or not. If it is used for commercial purpose(s), the buyer/user is not a consumer, and if it is not - the buyer/user is a consumer.

Summary Table