Trust not Disqualified in all circumstances From Filing Consumer Complaint.
The Union of India submitted before the Supreme Court on October 17,2024 trust does not all the time disqualify a legal entity from filing a consumer complaint if it meets other conditions of being a consumer.
Additional Solicitor General Aishwarya Bhati argued representing the Centre, stated that the trust status of an entity should not be the sole criterion for determining whether it qualifies as a “consumer.” The dominant purpose of the transaction has to be considered”
“Considering the objects of the Act a public trust which otherwise qualifies under definition of consumer has to be held as a person”
Justice Abhay Oka added-
“Whether it will be a consumer or not for that the test will have to be applied”
The issue had been referred to a larger bench by a division bench, which had observed that the definition of “person” under the Act is inclusive, potentially encompassing charitable trusts
Referring to a decided case of Lilavati Kirtilal Mehta Medical Trust v. M/S Unique Shanti Developers ,it was argued
“we are relying on Lilavati Kirtilal Mehta Medical Trust v. M/S Unique Shanti Developers in which the test has been laid down and it is the Union’s respectful submission that this is the yardstick to be adopted to see whether it will be a consumer complaint or not. The entity of the person, once it is a legal entity my lords that is sufficient. The purpose will have to be ascertained to see whether they are consumer. Trustee or not can neither be a qualification nor a disqualification, that is our respectful submission.”
It was further argued that
“simply being a trust should neither qualify nor disqualify an entity from being a consumer. Bhati further contended
“The Pratibha Pratishthan judgement, made an error in saying that since it is not a person and therefore it is not a consumer”
Matter yet listed for further hearing
DR PREM LATA
The Union of India submitted before the Supreme Court on October 17,2024 trust does not all the time disqualify a legal entity from filing a consumer complaint if it meets other conditions of being a consumer.
Additional Solicitor General Aishwarya Bhati argued representing the Centre, stated that the trust status of an entity should not be the sole criterion for determining whether it qualifies as a “consumer.” The dominant purpose of the transaction has to be considered”
“Considering the objects of the Act a public trust which otherwise qualifies under definition of consumer has to be held as a person”
Justice Abhay Oka added-
“Whether it will be a consumer or not for that the test will have to be applied”
The issue had been referred to a larger bench by a division bench, which had observed that the definition of “person” under the Act is inclusive, potentially encompassing charitable trusts
Referring to a decided case of Lilavati Kirtilal Mehta Medical Trust v. M/S Unique Shanti Developers ,it was argued
“we are relying on Lilavati Kirtilal Mehta Medical Trust v. M/S Unique Shanti Developers in which the test has been laid down and it is the Union’s respectful submission that this is the yardstick to be adopted to see whether it will be a consumer complaint or not. The entity of the person, once it is a legal entity my lords that is sufficient. The purpose will have to be ascertained to see whether they are consumer. Trustee or not can neither be a qualification nor a disqualification, that is our respectful submission.”
It was further argued that
“simply being a trust should neither qualify nor disqualify an entity from being a consumer. Bhati further contended
“The Pratibha Pratishthan judgement, made an error in saying that since it is not a person and therefore it is not a consumer”
Matter yet listed for further hearing
