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Corporate Law

Appeal Dismissed as Business-Automation Software Not Considered Consumer Use

Case Law Details

TaxGuru Citation
2025 taxguru.in 10991
Case Name
Poly Medicure Ltd. Vs Brillio Technologies Pvt. Ltd. (Supreme Court of India)
Date of Judgement/Order
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Poly Medicure Ltd. Vs Brillio Technologies Pvt. Ltd. (Supreme Court of India)

Corporate Buyer Not a Consumer: SC Holds Software Purchase for Business Automation Is a Commercial Purpose

The Supreme Court dismissed Poly Medicure Ltd.’s appeal &  upheld the findings of the State Commission & NCDRC that the company is not a “consumer” u/s 2(1)(d) of the Consumer Protection Act, 1986, as its purchase of the “Brillio Opti Suite” software was for a commercial purpose.

Poly Medicure had purchased the software to automate complex export–import documentation &  business processes such as export documentation sets, SAP document clubbing, LC management, duty drawback tracking, container tracking, &  forex cover management. The Court held that such software directly facilitates the company’s business operations &  is closely connected with profit generation &  business efficiency.

The appellant argued that it was an “end user,” that the software was for internal use, &  that self-use without resale should qualify it as a consumer. The Court rejected this, clarifying that self-employment protection applies only to individuals earning livelihood, not to incorporated commercial entities. A company automating its processes is doing so to reduce cost & maximise profits, which squarely falls under “commercial purpose.”

The Court distinguished precedents like Sunil Kohli &  Paramount Digital, which involved individuals purchasing goods for livelihood. It relied on Lilavati Kirtilal Mehta Medical Trust, Harsolia Motors, Virender Singh, &  other authorities to emphasise that the dominant purpose test governs consumer status.

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 6,911

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