Authorities Holding Public Auctions Must Disclose All Known Encumbrances and Related Litigation  ||  SC: Compensatory Allowances Must Be Included While Computing Overtime Wages U/S 59 of Factories Act  ||  SC: NGT Has No Jurisdiction to Decide Disputes Relating to Building Plan Violations  ||  SC: Evidence is Often Fabricated Using AI And False Allegations are Rampant in Matrimonial Cases  ||  SC: While Declining to Quash an FIR, A High Court Should Not Direct Police To Follow Section 41A CrPC  ||  Allahabad High Court: Recruitment Rules Cannot Override Compassionate Appointments  ||  Rajasthan HC: Single Blunt Blow Causing Grievous Injury is Not Attempt to Murder Without Intent  ||  Karnataka High Court Holds Mining Leases Granted in Violation of Rule 22-D are Void Ab Initio  ||  Supreme Court: Wait-Listed Candidates Have No Vested Right After List Expiry  ||  SC: Reserved Candidates Scoring Above General Cut-Off Must be Considered For Open Posts    

Crompton Greaves Limited and Ors. v. Daimler Chrysler India Private Limited and Ors. - (National Consumer Disputes Redressal Commission) (08 Jul 2016)

Vehicles purchased by company for officers’ personal use not excluded from consumer protection law

MANU/CF/0209/2016

Consumer

The National Consumer Disputes Redressal Commission held that vehicles purchased by a company for its directors for their personal use are not excluded from protections under the Consumer Protection Act 1986.

The NCDRC had received the query: “whether the purchase of a car or any other goods by a company for the use/personal use of its Director amounts to purchase for a commercial purpose, within the meaning of Section 2(1)(d) of the Consumer Protection Act”.

The Appellant, Crompton Greaves, had purchased two Daimler (Mercedes) cars for use by its directors, but defects were found and a complaint was registered before the Commission. Daimler claimed that since the cars were purchased for a commercial purpose, the Consumer Protection Act was inapplicable.

The Commission looked to the definition of ‘consumer’ under the Act and noted that emphasis was on the purpose for which goods were obtained and would be put to use for. It opined, “If a car or other goods are purchased or the services are hired or availed by a company for the personal use of its directors or employees, the purpose behind such acquisition is not to earn profits or to advance the business activities of the company.”

Occasional and incidental use of the cars by the directors or employees of the company for the purposes of company business would not lead to a conclusion that the same were purchased for a commercial purpose.

Relevant : Controls and Switchgear Company Ltd. v. Daimler Chrysler India Pvt. Ltd. and T and T Motors Ltd. MANU/CF/0188/2007 Laxmi Engineering Works v. P.S.G. Industrial Institute MANU/SC/0271/1995

Tags : CONSUMER PROTECTION   VEHICLES   COMERCIAL USE   DIRECTORS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved