Consumer law covers executive’s car

According to the Consumer Protection Act, a company which buys goods for 'commercial purpose' is not a consumer and cannot move a consumer forum. But if a company buys goods or vehicle for the personal use of its directors or staff, it is not the commercial purpose and a consumer forum can be approached for an appropriate remedy. However, this question arises very often in consumer courts. In the latest case, Shree Krishna Motors vs BMW India Ltd, a partnership firm bought a car for use of its directors. When a consumer issue arose between the firm and the manufacturer, the firm moved the Chhattisgarh consumer commission, which rejected the complaint maintaining that the car was bought for the commercial purpose. On appeal, the National Consumer Commission reversed the ruling as the firm argued that the vehicle was bought for use by the partners. The judgment recalled its earlier full bench decision in Crompton Greaves Ltd vs Diamler Chrysler India, in which it was asserted that if a car or any other goods are obtained or any services hired by a company for the personal use of its directors or employees, such a transaction is not for commercial purpose. It does not matter whether the goods or services are used solely for the personal purposes of the directors or employees or they are used primarily for the use of the directors or employees of the company and incidentally for the purposes of the company.