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SUPREME COURT ON WHETHER A
The Supreme Court today deliberated on whether a "Trust' can file a consumer complaint and avail redressal via the Consumer Protection Act,1986. Section 3 of Indian Trust Act 1882 “A Trust is an obligation annexed to the ownership of the property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner”. The case was put before a Bench consisting of Hon'ble Justices UU Lait and Annirudha Bose
CORE ISSUE
Whether a Charitable Trust could maintain an action under the provisions of the Consumer Protection Act,1986 and claim compensation under the Act?
CONFLICTING JUDGEMENTS
Pratibha Pratisthan & Others v. Manager, Canara Bank & Others, reported in (2017) 3 SCC 712, to hold that a “trust” would not be a “person” and consequently not a “consumer” within the meaning ofthe provisions of the Act. In Kalpavruksha Charitable Trust vs. Toshniwal Brothers (Bombay) Pvt. Ltd., the complainant was a registered Charitable Trust and the issue that arose was whetherthe machinery in question was installed for commercial purpose or not. The question whether the Trust could maintain an action did not squarely arise for consideration. The Court also looked into the various provisions of the Consumer Protection Act,1986 such as the expressions “complainant”, “consumer”, and “person” have respectively been defined in Sections 2(1)(b), 2(1)(d) and 2(1)(m).
RULING
The court held that, the legislative intent appears to have a wider coverage and therefore the concerned provision includes number of categories under the definition of “person” so much so that even an unregistered firm which otherwise has certain disabilities in law, is also entitled to maintain an action.In the circumstances, It found it difficult to accept that a "trust" would not come within the definition of a "consumer". In it'sview the issue needs to be revisited and the matter requires a larger reconsideration. The Bench, therefore, request ed the Hon’ble ChiefJustice of India to constitute a bench of such strength as the Hon’ble Chief Justice of India may consider proper.
