{"id":250418,"date":"1999-10-12T00:00:00","date_gmt":"1999-10-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/kalpavruksha-charitable-trust-vs-toshniwal-brothers-bombay-on-12-october-1999"},"modified":"2015-06-13T18:28:41","modified_gmt":"2015-06-13T12:58:41","slug":"kalpavruksha-charitable-trust-vs-toshniwal-brothers-bombay-on-12-october-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/kalpavruksha-charitable-trust-vs-toshniwal-brothers-bombay-on-12-october-1999","title":{"rendered":"Kalpavruksha Charitable Trust vs Toshniwal Brothers (Bombay) on 12 October, 1999"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Kalpavruksha Charitable Trust vs Toshniwal Brothers (Bombay) on 12 October, 1999<\/div>\n
Author: S S Ahmad<\/div>\n
Bench: S.Saghir Ahmad, R.P.Sethi<\/div>\n
           PETITIONER:\nKALPAVRUKSHA CHARITABLE TRUST\n\n\tVs.\n\nRESPONDENT:\nTOSHNIWAL BROTHERS (BOMBAY)\n\nDATE OF JUDGMENT:\t12\/10\/1999\n\nBENCH:\nS.Saghir Ahmad, R.P.Sethi\n\n\n\n\nJUDGMENT:\n<\/pre>\n
      S.  SAGHIR AHMAD, J.\n<\/p>\n
      This  appeal  was\t disposed of by us by  our  judgment
\ndated 12th August, 1999.\n<\/p>\n
      Mr.   R.N.   Keswani,  appearing\ton  behalf  of\t the
\nappellant, has filed the instant Application stating that he
\nwas the only counsel appearing on behalf of the appellant on
\n12.8.1999,  but\t since he was busy in some other Court\twhen
\nthe  matter was taken up by us, he could not come and  argue
\nthe appeal.  He also stated that the counsel who was deputed
\nto  make a mention that he (Mr.\t R.N.  Keswani) was busy  in
\nsome other Court was not entitled to argue the appeal.\n<\/p>\n
      The  appeal  was heard by us in detail  and  elaborate
\narguments  were\t made on behalf of the appellant  also,\t but
\nhaving\tregard\tto the fact that Mr.  Keswani was  the\tonly
\ncounsel\t in  the  appeal and he has stated  that  the  other
\ncounsel\t was not entitled to argue the appeal, we have heard
\nMr.  Keswani as also Mr.  S.P.Mithal.\n<\/p>\n
      The  main reliance on behalf of the appellant has been
\nplaced\ton  the decision of this Court in Laxmi\t Engineering
\nWorks  vs.  P.S.G.  Industrial Institute<\/a> (1995) 3 SCC 583 in
\nsupport\t of  the  contention  that   the  appellant  was   a
\n“consumer”  within the meaning of the definition set out  in
\nthe  Consumer  Protection  Act<\/a>, 1986.\tThe  definition\t was
\nconsidered by us and it was held that since the machinery in
\nquestion  was  installed  by the  appellant  for  commercial
\npurpose, it would not be a “consumer”.\n<\/p>\n
      It  is contended by the counsel for the appellant that
\nthe  term  “commercial purpose” has been considered by\tthis
\nCourt in the case of Laxmi Engineering Works (supra) and the
\nobservation of National Commission that “commercial purpose”
\nwould  mean  “profit-making activity on a large\t scale”\t was
\napproved  and,\ttherefore,  the\t  activity  of\tthe  present
\nappellant   would  not\tbe  a  commercial  activity  as\t  no
\n“profit-making\ton  a large scale” is involved.\t We  do\t not
\nagree.\tThis Court in that decision had further held in para
\n21 as under :\n<\/p>\n
      “21.  We must, therefore, hold that :\n<\/p>\n
      (i)  The explanation added by the Consumer  Protection
\n(Amendment)  Act<\/a> 50 of 1993 (replacing Ordinance 24 of 1993)
\nwith  effect  from 18.6.1993 is clarificatory in nature\t and
\napplies to all pending proceedings.\n<\/p>\n
      (ii) Whether the purpose for which a person has bought
\ngoods  is  a “commercial purpose” within the meaning of\t the
\ndefinition  of expression ‘consumer’ in Section 2(d)<\/a> of\t the
\nAct  is always a question of fact to be decided in the facts
\nand circumstances of each case.\n<\/p>\n
      (iii)  A person who buys goods and uses them  himself,
\nexclusively  for  the purpose of earning his livelihood,  by
\nmeans  of  self-employment is within the definition  of\t the
\nexpression ‘consumer’.”\n<\/p>\n
      Applying\tthose tests, the Court in the case of  Laxmi
\nEngineering  Works (supra) held that the appellant was not a
\n`consumer’  as the machinery in that case were not purchased
\nfor  self-employment,  but  were purchased  for\t “commercial
\npurposes.”\n<\/p>\n
      It  is,  therefore,  clear  that\t in  spite  of\t the
\ncommercial  activity, whether a person would fall within the
\ndefinition  of “consumer” or not would be a question of fact
\nin  every case.\t The National Commission had already held on
\nthe  basis of the evidence on record that the appellant\t was
\nnot  a\t“consumer”  as\tthe   machinery\t was  installed\t for
\n“commercial  purpose”.\t We  have  been\t again\treferred  to
\nvarious\t  documents,  including\t  the  “Project\t  document”,
\nsubmitted  by the appellant itself to the Bank for a loan to
\nenable\tit  to\tpurchase the machinery in question,  but  we
\ncould not persuade ourselves to take a different view.\n<\/p>\n
      Learned counsel for the appellant then referred to the
\ncase  of  Addl.\t  Commissioner of Income  Tax,\tGujarat\t vs.
\nSurat  Art  Silk Cloth Manufacturers Association<\/a> (1980)\t 121
\nITR  1\twherein\t the activity of a  charitable\tinstitution,
\nthough\tcommercial  in nature, was held to be a part of\t the
\ncharitable  activity.\tThis  decision\tdoes  not  help\t the
\nappellant as it was a decision rendered under the Income Tax
\nAct<\/a>  and the question which we are considering here had\t not
\narisen in that case.\n<\/p>\n
      Learned counsel for the appellant then referred to the
\ndecision  of  this Court in Commissioner of Income Tax,\t New
\nDelhi  vs.   Federation\t of Indian Chambers  of\t Commerce  &
\nIndustries,  New Delhi<\/a>, 1981 (3) SCR 489, and contended that
\nif  the\t dominant  object  of the trust\t or  institution  is
\ncharitable,  the  activity  carried on by it  would  not  be
\ntreated\t as an activity for profit.  It is contended on\t the
\nbasis  of the above decision that the activities carried  on
\nby the appellant were not profit- oriented nor was there any
\nintention  or  object to carry on those activities  to\tearn
\nprofit.\t  This\tagain  was the decision rendered  under\t the
\nIncome\tTax  Act<\/a>  and is not on the point  involved  in\t the
\npresent\t case whether the appellant was a “consumer”  within
\nthe meaning of the Consumer Protection Act<\/a>, 1986.\n<\/p>\n
      In  the  instant\tcase, what is to  be  considered  is
\nwhether the appellant was a “consumer” within the meaning of
\nthe  Consumer Protection Act<\/a>, 1986, and whether the goods in
\nquestion  were\tobtained  by him for “re-sale”\tor  for\t any
\n“commercial  purpose”.\tIt is the case of the appellant that
\nevery  patient\twho is referred to the Diagnostic Centre  of
\nthe  appellant\tand who takes advantage of the CT Scan\tetc.
\nhas  to pay for it and the service rendered by the appellant
\nis not free.  It is also the case of the appellant that only
\nten  per  cent\tof the patients are provided  free  service.
\nThat  being so, the “goods” (machinery) which were  obtained
\nby the appellant were being used for “commercial purpose”.\n<\/p>\n
      No  other point was pressed before us.  We, therefore,
\nmaintain  our  judgment dated 12th August, 1999\t even  after
\nhaving heard Mr.  Keswani who insisted for a hearing through
\nthis  Application.   The  Application shall  be\t treated  as
\ndisposed of.<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Kalpavruksha Charitable Trust vs Toshniwal Brothers (Bombay) on 12 October, 1999 Author: S S Ahmad Bench: S.Saghir Ahmad, R.P.Sethi PETITIONER: KALPAVRUKSHA CHARITABLE TRUST Vs. RESPONDENT: TOSHNIWAL BROTHERS (BOMBAY) DATE OF JUDGMENT: 12\/10\/1999 BENCH: S.Saghir Ahmad, R.P.Sethi JUDGMENT: S. SAGHIR AHMAD, J. This appeal was disposed of by us by our judgment […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-250418","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nKalpavruksha Charitable Trust vs Toshniwal Brothers (Bombay) on 12 October, 1999 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/kalpavruksha-charitable-trust-vs-toshniwal-brothers-bombay-on-12-october-1999\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kalpavruksha Charitable Trust vs Toshniwal Brothers (Bombay) on 12 October, 1999 - 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