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Supreme Court of India 2019-12-09 partly_allowed

CHAIRMAN-CUM-MANAGING DIRECTOR ONGC LTD. vs CONSUMER EDUCATION RESEARCH SOCIETY

Bench: 2 — Deepak Gupta, S. Abdul Nazeer

In Brief

ONGC employees who participated in a voluntary post-retirement benefits scheme administered by a Trust claimed they were consumers entitled to relief under the Consumer Protection Act for alleged delays in processing their claims. The Supreme Court held that no consumer-service provider relationship existed between the employees and ONGC because: the Trust, not ONGC, managed the scheme; ONGC contributed only nominally (Rs. 100 annually) while employees bore the cost; and the scheme lacked contractual privity essential for consumer relationships. The Court partly allowed the appeals, setting aside the findings of a consumer relationship but directing ONGC to pay the awarded amounts (excluding costs) anyway, given the retirees' age and small sums involved.

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