SHRI RAM CHITS (INDIA) PRIVATE LIMITED, FORMERLY KNOWN AS SHRI RAM CHITS (K) PVT. LTD. v. RAGHACHAND ASSOCIATES CITATION: 2024 (SC) 368
Facts: The appellant, a registered chit fund company, was engaged in the chit business. The complainant subscribed to chits in group 53005/Ticket No.9, with a chit value of ₹1,00,000/- payable in monthly installments of ₹2,500/- over 40 months. The complainant alleged that the appellant ceased its chit business in 1996 and refused to refund the subscription amount, claiming that the complainant had outstanding dues. The complainant initially sought redress under the Chit Funds Act, 1982. The appellant filed WP No.22568/2012 challenging the Additional Registrar's order, while the complainant filed WP No.17045/2014 questioning the maintainability under the Chit Funds Act. On 16.11.2015, the High Court directed the complainant to approach the Consumer Forum, ruling that the cases were not maintainable under the Chit Funds Act.
Issue: Whether the complaint falls within the definition of "consumer" under the Consumer Protection Act, 1986, and who bears the onus of proof regarding the commercial purpose of the service.
Observation: The Supreme Court, affirming the NCDRC's decision, observed that the service provider bears the onus of proving that the services were availed for a commercial purpose. Under the Consumer Protection Act, 1986, complaints against service providers are barred if the services are for commercial purposes, unless the services are used exclusively for earning a livelihood by self-employment. The court emphasized that the onus of proving that the services were for a commercial purpose lies with the service provider.
