🧾 Legal Learning – Shri Ganpati Jurists
Supreme Court: Who Is a “Consumer”
Under the Consumer Protection Act?
Case: M/s Poly Medicure Ltd. v. M/s Brillio Technologies Pvt. Ltd. (SC)
🔹 Key Legal Principle
A company purchasing goods or services for business automation, operational efficiency, or profit generation is NOT a “consumer” under Section 2(1)(d), Consumer Protection Act, 1986.
🔹 1. Commercial Purpose – Companies Not Consumers
Corporate purchases aimed at improving business operations, automating processes, or increasing profitability are commercial transactions.
Such companies cannot file complaints under the Consumer Protection Act.
🔹 2. Self-Employed Individuals vs. Corporations
The Act protects individuals who purchase goods exclusively for earning their livelihood by self-employment.
This protection does not extend to incorporated companies.
Company purchases for business growth or profit maximization fall outside the definition of “consumer.”
🔹 3. Dominant Purpose Test
The Court examines the dominant intention behind the transaction.
If the purchase has a clear nexus with profit generation, business expansion, or commercial benefit:
➝ It is considered a commercial purpose.
➝ The purchaser is not a consumer under the Act.
📘 Conclusion
The Supreme Court reaffirmed that corporate/commercial transactions are excluded from consumer protection.
Only individuals buying goods for self-employment livelihood qualify as consumers.
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