Introduction:

In a groundbreaking ruling on consumer protection law, the Supreme Court has outlined the approach consumer forums must adopt when faced with technical pleas raised by service providers regarding the maintainability of consumer complaints. The case, involving Shriram Chits (India) Private Limited (formerly known as Shriram Chits (K) Pvt. Ltd) and Raghachand Associates, underscores the significance of addressing consumer grievances while navigating legal intricacies.

Arguments:

The petitioner, represented by a team of advocates led by Mr. Shailesh Madiyal, Senior Advocate, contended that the consumer complaint was not maintainable as the services availed by the respondent were for commercial purposes. Conversely, the respondent, represented by Mr. Gopal Sankaranarayanan, Senior Advocate, argued that unless the service provider proves that the goods/services were availed for commercial purposes, disputing the maintainability of the complaint is unwarranted.

Court’s Judgement:

Affirming the decision of the National Consumer Dispute Redressal Commission (NCDRC), the bench comprising Justices P.S. Narasimha and Aravind Kumar clarified the burden of proof in such cases. The court emphasized that the service provider must prove that the goods/services were availed for commercial purposes before disputing the maintainability of the complaint. Only if the service provider satisfies this burden does the onus shift to the complainant to prove that the services were exclusively for earning livelihood through self-employment. In the absence of evidence substantiating the service provider’s claim, the court dismissed the appeal and upheld the finding of deficiency of service on the part of the appellant.