Can hotelier be a consumer? State, national panels differ

A hotel owner moved a district consumer forum in Delhi seeking Rs 15 lakh compensation against a water-proofing company alleging deficient services that resulted in huge seepage in rooms and resultant damage to the wood work.

The district forum rejected the petition saying the hotelier was running the premises for commercial purposes, hence, as per the National Consumer Disputes Redressal Commission — the apex consumer body — he would not qualify as a ‘consumer’ under the Consumer Protection Act.

The state commission, entertaining the appeal by Gesture Hotels and Food Pvt Ltd, rapped the District Forum and said unless the services were availed or goods were purchased for further sale for earning profit, it would fall within the ambit of service under the consumer law. Appearing for Noida Water Proofing Company, which water-proofed certain rooms in the hotel, counsel Soumyajit Pani pointed out to the State Commission that holding a hotelier as a consumer would be contrary to the ruling given by the National Commission, whose verdicts were binding on all consumer fora.

Disregarding the argument, the State Commission said it was not bound by the National Commission’s views and that it was supposed to follow the rulings laid down only by the Supreme Court and the high courts.

“Even if any contrary view has been taken by the National Commission, by no stretch of imagination the same is binding on this (state) commission as these are the views and not the law laid down by the law laying authorities,” it said.

The Times of India 15th April 2008 Delhi P15
With thanks from The Time of India
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