Deficiency in Service - The Legal Chamber

Supreme Court Clarifies: Buying Software for Business Is Not ‘Consumer’ Activity

3Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies: Buying Software for Business Is Not ‘Consumer’ Activity

The Supreme Court held that a company purchasing software to automate and streamline its core, profit-generating business operations does so for a "commercial purpose" under Section 2(1)(d) of the Consumer Protection Act, 1986. Consequently, it does not qualify as a "consumer" and cannot maintain a complaint before a consumer forum for alleged deficiency in such services. Facts Of The Case: M/s Poly Medicure Ltd., the appellant, is a company engaged in the import and export of medical devices. To implement an export/import documentation system at its plant, it purchased a product license for the "Brillio Opti Suite" software from M/s Brillio Technologies Pvt. Ltd., the respondent. After making the requisite payment, the appellant alleged the software was defective and non-functional. Cla...

Supreme Court Says Failure in Treatment Isn’t Always Negligence :A Landmark Ruling for Doctors

The Supreme Court held that consumer fora cannot travel beyond the pleadings to construct a new case for the complainant. It emphasized that medical negligence cannot be presumed merely because of an adverse treatment outcome. The Court ruled that the NCDRC overstepped its jurisdiction by basing its finding on antenatal care negligence, which was never pleaded by the complainant, and set aside the order. Facts Of The Case: A patient, Charanpreet Kaur, died from atonic Post-Partum Haemorrhage (PPH) hours after delivering a stillborn child at Deep Nursing Home, Chandigarh, under the care of Dr. Kanwarjit Kochhar. Her husband, Manmeet Singh Mattewal, filed a consumer complaint alleging medical negligence specifically in the post-delivery treatment. He contended the nursing home was il...

Supreme Court Rules: GMADA Not Liable for Homebuyers’ Loan Interest in Delayed Housing Project

The Supreme Court ruled that while consumer commissions can award compensation for deficiency in service, including mental harassment and litigation costs, they cannot award interest on a loan taken by the consumer in addition to the stipulated contractual interest (8% compounded annually) on the refunded amount. The Court emphasized that the awarded interest sufficiently compensates for the deprivation of investment, and awarding interest under multiple heads for the same default is unsustainable. Facts Of The Case: The Greater Mohali Area Development Authority (GMADA) launched a residential scheme called 'Purab Premium Apartments' in 2011. Anupam Garg and Rajiv Kumar (respondents) applied for flats, with Anupam Garg paying an earnest money of ₹5,50,000 for a 2-BHK + Servant Room apar...