Supreme Court Rebukes RBI for Remaining a Bystander as YES Bank Operated Clandestinely  ||  Supreme Court: Lower Fresh Bids Alone Cannot Justify Cancellation of an Auction  ||  Supreme Court Directs Delhi Police to Produce Section 163 BNSS Orders and Preserve CCTV Footage  ||  Supreme Court Affirms Menstrual Hygiene as a Fundamental Right, Warns States of Contempt  ||  Supreme Court Flags AI-Generated Fake Judgments Submitted in a Party’s Case Compilation  ||  Karnataka High Court: Vijay Mallya’s Flamboyant Lifestyle Hinders Settlement of Bank Claims  ||  Delhi High Court: Women can be Booked for Gang Rape without Physically Committing it  ||  Delhi High Court: Litigants Must Track Their Cases and Cannot Blame Lawyers for Their Own Inaction  ||  Allahabad High Court: Contract Workers Must Prove Work Parity With Regular Staff for Equal Pay  ||  Allahabad High Court Directs UP Trial Courts to Decide Maintenance Execution Cases Within Six Months    

Bunga Daniel babu v. Vasudeva Constructions and ors. - (Supreme Court) (22 Jul 2016)

Not precluded as ‘consumer’ even if outcome commercial

Consumer

Unless a party approaching the consumer disputes redressal forums is a partner or a co-adventurer in a business from which dispute arises, it remains a ‘consumer’ within the meaning of the Consumer Disputes Act 1986.

In the instant case, the appellant owned several plots in order to develop which it entered into a Memorandum of Understanding with the respondent; respondent would construct a multi-storied building, and proceeds from the sale of the apartments would be shared proportionally between the parties.

Subsequently, construction took three years longer than was envisaged in the MoU and appellant approached the consumer dispute redressal forum claiming additional compensation from the respondent. In its defence, respondent claimed that since the transaction entered between them was of a commercial nature, appellant was not a ‘consumer’ under the Consumer Protection Act 1986. The Supreme Court, in assessing whether the appellant could be considered a consumer, examined the joint venture agreement between the parties. It noted that the MoU was not in support of the respondent as the appellant had neither any say nor control over construction and did not participate in respondent’s business.

It was therefore a consumer for the purposes of the Act. The matter was remitted to the State Dispute Redressal Commission for re-adjudication.

Relevant : Punjab University v. Unit Trust of India MANU/SC/0599/2014 Additional Commissioner of Income Tax, Gujarat vs. Surat Art Silk Cloth Manufacturers Association MANU/SC/0296/1979 Section 2 of the Consumer Protection Act, 1986

Tags : CONSUMER   PROTECTION   COMMERCIAL   JOINT VENTURE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved