CONSUMER IS KING !!

The Corruption is
becoming so
rampant, widespread
and deep that the
society, instead of
bothering,
complaining and
fighting, is accepting
it as a way of life !!
 Right to be protected
Right to be informed
Right to be assured
Right to be heard
Right to seek redressal
Right to consumer
education
Redress through courts-
Time consuming, costly affair
Effective redressal machinery,Inexpensive reliefs
 Who is a
CONSUMER ??
"consumer" means any person who:

i) buys any goods for a consideration which has been

paid or promised or partly paid and partly promised,
or under any system of deferred payment and includes
any user of such goods other than the person who
buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of
deferred payment when such use is made with the
approval of such person, but does not include a person
who obtains such goods for resale or for any
commercial purpose, OR
ii) [hires or avails of] any services for a consideration
which has been paid or promised or partly paid and
partly promised, or under any system of deferred
payment and includes any beneficiary of such services
other than the person who [hires or avails of] the
services for consideration paid or promised, or partly
paid and partly promised, or under any system of
deferred payments, when such services are availed of
with the approval of the first-mentioned person but
does not include a person who avails of such services
for any commercial purpose,
 Position after the 1993 Amendment

2[Explanation : For the purposes of sub-clause (i),

"commercial purpose" does not include use by a
consumer of goods bought and used by him
exclusively for the purpose of earning his livelihood, by
means of self-employment;]
1)Abhijeet bought a Television set
from an electronics shop for using it
at home. TV was defective. Is he a
consumer ?

2)Sumit on a holiday with his family

hired a taxi. Taxi was in a poor
condition and broke down several
times. Is sumit a consumer ?
3) Baman bought a pressure cooker for
use by his family. In the first use itself
while his wife Simi was using it, it busted
and hurt Simi. Is she consumer ?

4) Anand runs a laundry shop. He brought

a washing machine from an electronics
shop for using at his shop. The machine
was defective from time it was delivered.
Is Anand a consumer ?
5)Balu is a distributor of computer
accessories. He bought 100 pen
drives from manufacturer for
selling to other computer vendors.
Abhijeet bought a TV for using it at
home. He paid 30% of the amount.
The remaining 70% to be paid a week
later. Is he a consumer ?

What if, whole amount is to be paid

after one month ?

What if, amount is to be paid in six

equal monthly installments ?
At a conference, free pens are
being distributed by Vijay. The
pens are defective and start
leaking. It spoilt clothes of several
persons. Do they have right of
action against Vijay ??
 Western India State Motors v.
Sobhag Mal Meena (1989)
 The NCDRC had no hesitation in ruling that
the buying of a car for the purpose of running
it as a taxi was a commercial purpose and
thus could not be brought to a consumer
court..
Livelihood contention ??

Consumer: Quicker and Inexpensive relief

Non-consumer: for same remedy, needs to go
to ordinary court.
 Synco Textiles Pvt Ltd v. Greaves
Cotton (1991)
Synco Textiles Pvt Ltd purchased 3 generating
sets at a total cost of Rs 553000 from Greaves
Cotton & Co. Ltd for use it its factory. The
generating sets turned out to be defective
leading to loss of business. Synco Textiles was
claiming before the State Commission. The
State Commission dismissed the case as it
was for commercial purpose.
 The NC resorted to the dictionary meaning as
commercial purpose had not ben defined by
the act. It seems to us clear that the intention
of Parliament, is to deny the benefits to
persons purchasing goods either for the
purpose of resale, of for being used in profit
making activity on a large scale
 Laxmi Engineering Works versus
P.S.G. Industrial Institute
A large number of self-employed people
benefit from this ruling. The court has clearly
held here that a person who buys goods and
uses them himself, exclusively to earn his
livelihood, by means of self-employment, is
within the definition of the expression
'consumer as defined in CPA.
 M/s Laxmi Engineering Works filed a case in
the Maharashtra State Commission (MSC) at
Mumbai. The MSC awarded it Rs 2.48 lakh
holding that it was a 'consumer of the
machinery bought from M/s P.S.G. Industrial
Institute. The matter went to the National
Commission (NC) in appeal.
 A key contention raised by PSG was that
Laxmi Engineering Works was not a
Consumer within the provisions of Consumer
Protection Act.
 The NC set aside the MSCs order saying the
claimant company should move a civil suit for
relief and held it was not entitled to invoke
the CPA as it was in the business of
manufacturing machine parts on a large scale
for the purpose of 'earning profit and the
value of a single piece of machinery used by
this firm was Rs 21 lakh.
 Laxmi Engineering filed an appeal in the
Supreme Court which upheld the NCs view.
But the apex court, also held that a self-
employed person who buys and uses
commercial goods to earn a livelihood is a
consumer under the CPA.
 Judgment
It was held by the Supreme Court that whether the
purpose for which a person has brought goods is a
commercial purpose within the meaning of the
definition of the expression consumer in Section
2(d) of the Act is always a question of fact to be
decided in the facts and circumstances of each case
therefore having regard to the nature and character
of the machine and the material on record Supreme
Court held that said machine was not the goods
which the appellant Laxmi Eng. Works purchased
for use by himself exclusively for the purpose of
earning his livelihood by means of self employment.
The appeal was accordingly dismissed.
 It further said that if a person earned his
livelihood by working on a typewriter or
plying a taxi or driving a truck, then he could
benefit from the provisions of CPA. The
Supreme Court thus held that it was not the
value of the goods that mattered but the
purpose to which the goods bought were put
to.
 The several words..
Uses them by himself,
Exclusively for the purpose of earning his
livelihood, and
By means of self employment ..

Make the intention of Parliament very clear..

 A reading of the definition of consumer
makes it clear the Parliament wanted to
exclude from the scope of the definition the
persons who obtain goods for resale and also
those who purchase goods with a view to
using such goods for carrying on any activity
for earning. The immediate purpose as
distinct from the ultimate purpose of
purchase, sale in the same form or after
conversion and a direct nexus with profit or
loss would be the determinants of the
character of a transaction-whether it is of a
"commercial purpose" or not.
 In Laxmi Engineering Works V. PSG Industries,
AIR 1995 SC 1428 the Supreme Court laid
down the test as close and direct nexus with
the commercial activity. It is not the value of
goods but the purpose for which it was
purchased that matters
 In Bhuperndra Guna Vs Regional Manager
and others (II 1995 CPJ 139), the National
Commission held that a tractor purchased
primarily to till the land of the purchaser and
let or on hire during the idle time to till the
lands of others, would not amount to
commercial use.
 Super Engineering Corporation Vs Sanjay
Vinayak Pant Kores (India) Ltd Vs Samir
Purkayastha (1996) National Commission In a
given case a farmer had purchased seeds
from a party. The seeds did not germinate.
The other party took the plea that I was not a
consumer. Whether purchase of seeds for the
purpose of agriculture is purchase for
commercial purpose? Purchase made for
agriculture is not for commercial purpose.
 In a case, the appellant had purchased EPBAX
system for his hotel with warranty and
annual maintenance contract. There was
deficiency of service during warranty period
and AMC period. The National Commission
held that case falls under Section 2(1)(d) and
appellant entitled to compensation.
 Petitioner filed complaint, inter alia, alleging
that he along with his wife has been running
a maternity home at 10/60, Katar Madari
Khan, Agra. Petitioner placed an order on
22.2.1994 for supply of Ultrasound Scanner
Model 212 on the respondent opposite party.
Respondent supplied the machine on
31.3.1994. Warranty was of one year. It was
alleged that after installation, the machine
went out of order..
 Engineer deputed by the respondent on
checking found that the machine needed to
be replaced, it being defective. Respondent
had not replaced/repaired the machine
despite repeated requests including service
of legal notice. Purchase of Ultrasound
Scanner model 212 by the petitioner was not
denied. However, it was pleaded that
petitioner is not a consumer as defined in
Consumer Protection Act, 1986
 In yet another recent case the complainant a company had
purchased computer system along with related accessories
from the opposite party. The intellifax machine, which was
supplied with the computer, was not giving performance up
to the mark and the same was defective. When the dispute
went to the reddressal forum under the opposite party
contended that the complainant was not a consumer as the
computer and the machine were purchased by the company
for business purpose i.e. for commercial purpose. However
the defect in the machine was intimated to the opposite
party within the warranty period. The National Commission
held that the purchaser of the machinery would certainly be
a consumer in respect of defect in machine during period of
warranty.
 Vimal Mehra Vs Bhasin Infortech & Others

(Hand out discussed in class)

 Privity of Contract
Preist & Wife v Last (1903) -
P asked L for a hot water bottle. Having being
shown one by L he asked L if it would stand
boiling water. L replied no, but it would stand
hot water. P then bought for his wife. Fifth
night of use bottle bursts & injures Mrs. P
turned out that the bottle burst because pure
rubber formed a very small proportion of the
material.
 P claims price & damages for wifes pain &
suffering from L.

Issues
(a) Privity of contract: Mrs. P has no right?
(b) Rights of a buyer who relies on the skill &
judgment of the seller (as discussed in the
Sale of Goods Act)
CONSUMER PROTECTION RESDESSAL AGENCIES

Consumer Disputes Redressal Forum-

DISTRICT FORUM

Consumer Disputes Redressal Commission-

STATE COMMISSION

National Consumer Disputes Redressal

Commission- NATIONAL COMMISSION
 Pecuniary Jurisdiction

Forum Amount in dispute

District Forum Upto Rs 20 lakh

State Commission Above Rs20 Lakh and

below Rs 1 crore

National Commission Above Rs 1 crore

 Jurisdiction of District Forum
Pecuniary Jurisdiction 11(1)
To entertain complaints where value of goods or
services and the compensation, if any, claimed, does
not exceed Rs 20 Lakhs.

Territorial Jurisdiction 11 (2)

The opposite party or each of the opposite parties,
where there are more than one, at the time of
institution of complaint, actually and voluntarily
resides or carries on business, or has branch office,
or personally works for gain or the cause of action,
wholly or in part, arises.
 Jurisdiction of State Commission
Pecuniary Jurisdiction 11(1)
1) To entertain complaints where value of goods or
services and the compensation, if any, claimed, exceed
Rs 20 Lakhs but not Rs 1 crore.

2) entertain appeals against the orders of any District

Forum within the State,

3) To call for the records and pass appropriate orders in

any consumer dispute which is pending before or has
been decided by any District Forum within state when
it appears to state commission that District forum has
exercised jurisdiction not vested, or has failed to
exercise jurisdiction so vested, or has acted in exercise
illegally or with material irregularity.
Jurisdiction of National Commission sec 21
Pecuniary Jurisdiction 11(1)

1) To entertain complaints where value of goods or

services and the compensation, if any, claimed,
exceeds Rs 1 crore.

2) entertain appeals against the orders of any State

Commission,

3) To call for the records and pass appropriate orders in

any consumer dispute which is pending before or has
been decided by any State Commission when it
appears to National commission that state commission
has exercised jurisdiction not vested, or has failed to
exercise jurisdiction so vested, or has acted in exercise
illegally or with material irregularity.
 Findings of the District Forum Sec 14
A. To remove defect pointed by appropriate
laboratory from goods in question,
B. Replace goods with new goods of similar
description which shall be free from defect,
C. Return to complainant price, or charges paid
by complainant,
D. Pay such amount as may be awarded by it as
compensation for any loss or injury suffered
due to negligence of opposite party.
Appeals from District Forum to State Commission
Sec 15
Any person aggrieved by an order made by the
District Forum may prefer an appeal against such
order to the State commission within a period of 30
days from the date of order, in such form as may be
prescribed.

The State commission may entertain an appeal after

the expiry of the said period if it is satisfied that
there was sufficient cause for not filing it within that
period.
Appeals from State Commission to National
Commission Sec 19
Any person aggrieved by an order made by the state
commission may prefer an appeal against such order
to the National commission within a period of 30
days from the date of order, in such form as may be
prescribed.

The National commission may entertain an appeal

after the expiry of the said period if it is satisfied
that there was sufficient cause for not filing it within
that period.
Appeals from National Commission to Supreme Court
Sec 23

Any person aggrieved by an order made by the

National commission may prefer an appeal against
such order to Supreme Court within a period of 30
days from the date of order, in such form as may be
prescribed.

Supreme Court may entertain an appeal after the

expiry of the said period if it is satisfied that there
was sufficient cause for not filing it within that
period.
24A. LIMITATION PERIOD for filing a complaint
(1) The District Forum, the State Commission or the
National Commission shall not admit a complaint
unless it is filed within two years from the date on
which the cause of action has arisen.
(2) Notwithstanding anything contained in sub-
section (1), a complaint may be entertained after the
period specified in sub-section (1), if the complainant
satisfies the District Forum, the State Commission or
the National Commission, as the case may be, that he
had sufficient cause for not filing the complaint
within such period:
Provided that no such complaint shall be entertained
unless the National Commission, the State
Commission or the District Forum, as the case may be,
records its reasons for condoning such delay.
 SERVICE
"service" means service of any description which is
made available to potential (users and includes the
provision of facilities in connection with banking,
financing insurance, transport, processing, supply of
electrical or other energy, board or lodging or both,
2[housing construction] entertainment, amusement or
the purveying of news or other information, but does
not include the rendering of any service free of charge
or under a contract of personal service;
 Patient going to a government hospital and
had not been charged for the service.

Consumer groups very much aggrieved with

discriminatory treatment of law..
 Indian Medical Association Vs. V P Shantha

Tax as consideration !!

It is people who pay taxes, which run

government establishments..
 Government hospitals/health
center's/dispensaries render free of charge
services to all patients..

Essential Characteristics of Tax:

A) Compulsory payment without consent,
B) for public purpose,
C) common burden, quantum depends on
capacity to pay
 SC noted that there are 3 kinds of hospitals..
1) Services rendered free of charge to all
2) charges are required to be paid by all
3) charges are required to be paid by persons
availing services but certain categories of
persons who cannot afford to pay are
rendered free of charges
 The expenses incurred for providing free
service are met out of the income from the
service rendered to the paying patients
Thus, falls under 2(1)(o) of the act
 To hold otherwise would mean that the
protection would be available to only those
who can afford to pay and such protection
would be denied to those who cannot so
afford, though they are the people who need
it more !!
 Another consequence would be that the
standard and quality of service rendered at
an establishment would cease to be uniform.
It would be of a higher and of better quality
to those who can afford to pay it and inferior
to others.

Thus need to be taken on similar footing..

 The services rendered by doctors and
hospitals irrespective of the fact that part of
the service is rendered free of charge, would
nevertheless fall within the ambit of Service
under the act.. Also persons who are
rendered free service are the beneficiaries
and as such come within the definition of
Consumer under the act..
 INSURANCE

Life Insurance and Personal Accident Policy

Medical Insurance
Motor Vehicle Insurance
Property Insurance, etc.
Pre Existing Diseases..
Praveen Damani V Oriental Insurance Co Ltd
Praveen Damani took a medical claim
insurance policy cover of Rs 350000 for
himself for an annual premium of Rs 5174.
Before issuing policy, the companys doctor
had subjected him to a complete medical
check up. After some time , he developed
chest pain and approached Manipal Heart
Foundation where an angiography was
carried out.
 After two years he underwent a bypass
surgery. The insurance company rejected the
first claim on the ground of pre existing
disease. Also they rejected the second claim
on the ground of deliberate suppression of
information.
 He complained to District forum which
dismissed his complaint and State
Commission too did the same. The National
commission noted that he had no symptoms
of heart disease till he suffered chest pain.
 Had he known the condition, he would have
rushed to get the necessary treatment
immediately and would not have waited for
two years to undergo a bypass surgery by
putting his life at risk.

No one does it !!
 Exclusion Clause:
It is not relevant whether the insured person
had knowledge of the existence of disease or
not. If symptoms of the disease existed
before the effective date of insurance and
even if the insured was not aware of these
symptoms, the insurance company is not
liable to pay any claims??
 Mrs. Ramanathan V National Insurance
Company
Padma Ramanathan filed this complaint for
deficiency in service against the National
Insurance Company repudiating valid claim
arising out of the accidental death of her
husband, Ramanathan. He was a partner of a
firm of Chartered Accountants. The firm has
obtained personal accident policy of Rs 25
lakh.
 Ramanathan, his wife and children went for
swimming at the Madras Gymkhana Club at
6.15pm. At about 7.25pm, he asked his wife
to take the children out from the pool. When
she returned in 5-7 minutes, she found
someone at the bottom of the pool. The body
was taken out by couple of co-swimmers and
only then she realized the drowned person
was her husband.
 He was declared dead at 2.15am by Apollo
Hospital. The insurance company repudiated
the claim stating:
We wish to inform you that it has not been
established that the death of Mr
Ramanathan is caused due to bodily injury
solely and directly caused by external, violent
and visible means, and therefore the claim
does not comes within the purview of policy,
hence No Liability
 It was actually argued by the insurance
company that death was cardio-respiratory
failure, and not drowning.

Prolonged swimming causes exhaustion,

exhaustion causes Anoxia, Anoxia leads to
Myocardinal Anoxia, leads to acute cardiac
failure resulting in silent drowning
 LIC V Smt. Tejalben Patel
At the time of taking policy, the insured did
not mention in the Proposal Form the fact
that he was hospitalized for fever and pain in
throat which he suffered for 8 months.
However, he was never hospitalized for heart
problem nor he was undergoing any
treatment. He dies of a massive heart attack
while driving. The Commission rejected LIC,s
petition that there was suppression of
material fact.
 Lost Policy.
Bahadur Singh died on 30.8.2002, and was
insured for Rs 500000/- His son Satvinder
Singh was his legal nominee. He was not
aware of the existence of the policy. Three
years after the death of his father, he found
the insurance policy while looking for some
old articles !!
(Oriental Insurance Co Vs Satvinder Singh)
 Timely Payment of premium..
LIC Vs Jaya Chandel
Karan Singh Chandel had taken a LIC policy
for a sum of 150000/- on 28.3.1994. The
annual premium which was to be paid on or
before 28.3.1995 was not paid. As per the
terms of the policy, it became inoperative
after a month. The insured died on 1.7.1995.
A cheque for the premium amount was
issued on 27.6.1995 by somebody else.
 BANKING..
Serving you round the clock

Where every individual is committed

Service with traditional personal touch

Hum Hain na
 Hefty Simple and compound interest

Exorbitant Penal Interest

Mighty bankers with huge resource..

Litigations are costly and troublesome for

small consumers..
 A woman bought a washing machine using
credit card for Rs. 18000/- in November,
2014. Rs 1400/- was to be paid every month.
The outstanding balance later was Rs 48000/-
The total amount payable for washing
machine came to Rs. 86,740 !!
 A person has been paying off Rs 50000/- debt
for 3 years. The principal, is till Rs 25000/-
What she did not realize was that bank was
charging a monthly interest working out a
huge 24 % a year. The latest is that banks are
offering an EMI on credit card payment.
Spend Rs 50000 in a month and you can pay
off in 3 EMI, interest just 5%. This 5 % is
actually a whopping 60% a year !!
 Recovering loan from defaulting clients

CLN Murthys case, a scientist with IICT,

Hyderabad was tortured by recovery agents
of ICICI bank for default of his loan.. The
recovery agents sometimes earn almost 30%
of loan amount for recovery as fees..
 Mr A S Arunachalam V Chief Manager, SBI
He hired a safe deposit locker no E-31 at SBI
in 1996 and was paying rent regularly. He
went to bank for operation of locker on
6.6.2001, made an entry in locker access
register, and along with bank official went
towards the locker, where there was a sticker
pasted..
E-31 Deceased !!
 Uma Shankar Bhatt V
Punjab & Sind Bank
Bhatt was a 71 year old senior citizen and
suffering from various ailments. His lifes
savings were deposited with the bank which
was unauthorized transferred from his
current account to one strange M/S. Bajrang
General Traders, whom he did not had any
relationship with. When he went to
withdraw, he found that Rs 1500000
deposited by him were transferred from his
account.. Suffered heart attack, was
 Anand Raj. V M/S. Metro Shoes Ltd.

Anand Raj had purchased a pair of shoes

from M/S. Metro Shoes Ltd for Rs 2190. After
one days use he was shocked to find that the
shoes were defective as one of them was
longer than the other. He rushed to the shop
for the exchange. That was denied to him,
but they offered to rectify the same, but he
found it uncomfortable even after repairs.
Exchange within 15 days for unused pair
with price tag intact
 MISLEADING ADVERTISEMENTS
Advertisements and consumer culture have
become a part and parcel of our lives today.
In the present globalised era, advertising
plays an important role in developing a
strong brand name of the corporation or
products. In general, advertising is used to
inform, persuade, and remind consumers
about the products or services. Advertising is
believed to enhance buyers responses to
products or services offered by a firm, thus
enabling possibilities of increased
 The influence of advertisements on
consumer choice is undeniable. And its this
fact that makes it imperative that
advertisements be fair and truthful.
Misleading and false advertisements are not
just unethical; they distort competition and
of course, consumer choice. False and
misleading advertisements in fact violate
several basic rights of consumers: the right to
information, the right to choice, the right to
be protected against unsafe goods and
services as well as unfair trade practices.
When an ad becomes misleading ?
When an edible oil advertisement gives you
the impression that you are free of heart
problems so long as you are using that
particular oil, then it is misrepresenting facts.
 When an advertisement of a water purifier
that filters only bacteria (and not viruses)
claims that it gives 100 percent safe water,
then it is a false statement.
 When a cell phone service provider promises
STD calls for 40 paise per minute, but omits
to say that this rate is applicable only when
calls are made to numbers serviced by the
same provider, then it constitutes
misrepresentation
 When a manufacturer claims that the
refrigerator marketed by him is the best or
that it keeps the food inside germ-free, that
claim should be backed by adequate data to
substantiate the claim. Or else, it becomes a
false statement.
 When an advertisement for a detergent says
that it can remove grease in just one wash- it
should be able to do just that and the
manufacturer should be able to prove this. Or
else, it is an incorrect statement or a false
advertisement.
 When an advertisement promises to give you
a free gift every time you buy the
advertised product, the free gift should really
be so. If the manufacturer is recovering
either fully or even partly, the cost of the so-
called free gift, then the advertisement
becomes false and misleading.
 If a retailer claims that he is offering a special
discount on his goods as part of a festival
celebration, while he is actually using the
festival as an excuse to get rid of old and
outdated goods, then he is deceiving
consumers.
 When a toothpaste advertisement says that
it prevents cavities, one expects the
manufacturer to have the data to prove this.
If he fails to do that, then he is making an
unsubstantiated claim or a false statement.
 If an advertisement for a face cream claims
that it removes dark spots on the face and
even prevents them from coming back, the
manufacturer should be able to prove this. Or
else, it is a deceptive advertisement.
 Even reducing crucial information about the
product to minute letters at the bottom of
the advertisement could be termed as an
unfair trade practice, particularly if such
information is not intelligible to the
consumer.???
 M.R. Ramesh VS M/S Prakash Moped
House
Hero Honda CD-100 that Mr. M.R. Ramesh bought
in Bangalore in February 1993. His contention was
that at the time of purchase, he was assured that
the bike would run 80 km on a litre of petrol.
However, the bike gave 22 km less than promised.
He filed before the National Consumer Disputes
Redressal Commission, New Delhi, an
advertisement published in October 1993, wherein
the manufacturer had made such a claim about the
mileage of the motorcycle.
 The manufacturer, on the other hand,
brought on record advertisements issued
during the period which carried an asterisk
on the numerical figure of 80 and at the foot
of the advertisement in small print, said at
40 kmph/130 kg , thereby qualifying the
claim.
 The Commission said: Such an
advertisement as put out by the respondents
is misleading. It amounts to unfair trade
practice. When the respondents claimed that
motor cycle can give mileage of 80 km per
litre, they cannot just be absolved of their
responsibility not to clearly indicate that this
would be so when the motor cycle is driven
at a speed of 40 kms per hour and the load
would be 130kg.
 Simply by putting an asterisk and then
indicating such condition in small print at the
bottom of the advertisement is certainly
deceptive. Moreover, when it is stated that
this mileage can be obtained at a particular
speed and load under standard conditions,
then those standard conditions must be
indicated so that the consumer is duly
informed of the bargain he is in it. Rather in
our view any such advertisement should take
into account the conditions of the roads in
the cities.
 In another such case

The manufacturer in this case argued that the

mileage claim is always based on Ideal
conditions. The foremost condition is that of
a Single Rider. There were, however, other
conditions as well such as ideal speeds,
recommended tyre pressure, lubricants,
constant running, the number of starts and
stops to the vehicle, the road condition, the
driving habits of the driver, etc. and 30
percent variation, was possible.
 The advertisement proclaims that if its your
dream to Secure 87 km/pl on an average then
buy Boxer CT Motorcycle. There are other
advertisements where it is written 87 km/pl,
0 percent interest, last two days, scheme
closes, hurry up, etc.
 The advertisement issued by the Buddhist Mission Dental
College and Hospital, in 1993, inviting applications for
admission to the Degree Course of Bachelor of Dental
Surgery. This is what the advertisement said: The Buddhist
Mission Dental college and Hospital (under Magadh
University, Bodh Gaya, and Dental Council of India, New
Delhi, Siddharth Nagar, New Bailey Road, Patna-801305).

A premier Dental College of Bihar established and managed

by Vishwa Buddha Parishad under Article 30(1) of the
Constitution of India, fulfilling all the criterion and
conditions of Dental Council of India. Clearly, the
impression created by advertisement was that it was
affiliated to Magadh University and was recognized by the
Dental Council of India. Both were however false.
 M/s Cox & Kings Pvt. Ltd v/s Mr Joseph A Fernandes
R.P no. 366 of 2005.

Facts: An advertisement on cruise travelling from

Bangalore to Malaysia and Singapore and back
contained a statement Two nights /three days
cruise. The Star cruises confirmation voucher given
to the couple however mentioned the embarkation
and disembarkation timing as Leave Singapore at
23.59 hrs on 17.4.2002 and arrive at Singapore on
19.4.2002. A couple who opted for the tour lodged
a complaint with the District Forum alleging that
the tour was for only two nights and 1 and half
days.
 Cox and Kings knew fully well that the cruise
actually lasts only for one and a half days but
they had falsely advertised that it was for 3
days. Counting one minute short of midnight
as a day was nothing short of outright
cheating by the company
 The claim of the company that issuance of
such advertisement is a universal practice
compelled the commission to condemn the
practice in even stronger terms
Unfair trade practice
25000/- compensation ordered and not to
publish such advertisement
 Club 7 Holidays Pvt Ltd V Rajesh
Gupta
Rajesh Gupta and Pradeep gupta went on
international tour organized by Club 7
Holidays Pvt Ltd and also paid the entire
amount demanded by tour operator. Howver,
once they were in foreign country various
problems arose, like non-availability of
promised vegetarian food and proper hotel
accommodation. They were further left to
pay for various costs which doubled the cost
of tour..