Buyer Not A Consumer If Purchase Made For Profit: SC

In a significant verdict, the Supreme Court on Thursday held that if any purchase of goods or services is for profit generation, then the purchaser cannot be held to be a consumer and consequently cannot pursue cases under the Consumer Protection Act.

- Press Trust Of India

A bench of Justices JB Pardiwala and Manoj Misra, delivering the judgement in an appeal filed by M/s Poly Medicure Ltd, affirmed the findings of the State and National Consumer Disputes Redressal Commissions that the complaint filed by the company was not maintainable under the Act.

It held that a company purchasing software to automate its business processes cannot be regarded as a "consumer" under the Consumer Protection Act, 1986, as such a transaction is for a "commercial purpose”.