SC Refers Trust Consumer Status Issue for Reconsideration Under Consumer Protection Act

Administrator Smt. Tara Bai Desai Charitable Opthalmic Trust Hospital Vs Managing Director Supreme Elevators India Pvt. Ltd & Ors (Supreme Court of India)

Summary: The Supreme Court considered whether a Charitable Trust could maintain an action under the Consumer Protection Act, 1986 and claim compensation under the Act. The District Consumer Disputes Redressal Forum, Jodhpur had accepted the claim of the Complainant-Trust and directed the respondents to pay Rs.5,90,000/- as compensation with interest at 9% per annum. The State Consumer Disputes Redressal Commission at Jaipur allowed the appeal on the ground that a Trust could not be a “consumer” under the Act, and that view was upheld by the National Consumer Disputes Redressal Commission. The Supreme Court noted that reliance had been placed on Pratibha Pratisthan & Others v. Manager, Canara Bank & Others, (2017) 3 SCC 712, where it had been held that a trust was not a “person” and consequently not a “consumer”. The Court also referred to Kalpavruksha Charitable Trust vs. Toshniwal Brothers (Bombay) Pvt. Ltd., (2000) 1 SCC 512, observing that the issue there concerned whether machinery had been installed for a commercial purpose and that the maintainability of an action by a Trust had not squarely arisen.