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Vinit Bahri & Anr. vs. MGF Developers Ltd. & Ors. (SC)

54.00 5.40

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Consumer Protection Act, 1986–Sec. 2(1)(d)–Whether the NCDRC was right in dismissing the complaint filed by the appellants on the premise that they do not fall under the difinitation of consumer for leasing out the subject property for commercial purposes ?–Held, the question of what constitutes “commercial purpose” is question of fact, to be decided in the circumstances of each case based on the purpose to which the goods/properties were purchased–The determinative question is whether the dominant purpose behind purchasing the flat was to facilitate profit generation through commercial activity, and whether there exists a close and direct nexus between the purchase and such profit generating activity–The respondents have not placed any cogent material on record to establish such nexus–The mere factum of leasing out the flat does not, by itself, demonstrate that the appellants purchased the property with the dominant purpose of engaging in commercial activity–Impugned judgment passed by the NCDRC set aside and complaint restored on original numbers.