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Supreme Court of India 2019-11-14 allowed

LILAVATI KIRTILAL MEHTA MEDICAL TRUST vs M/S UNIQUE SHANTI DEVELOPERS

Bench: 2 — Mohan M. Shantanagoudar, Ajay Rastogi

In Brief

A hospital trust purchased 29 flats to provide hostel accommodation to its nurses without charging rent. The developer alleged defects and the trust filed a consumer complaint. The National Commission dismissed it, holding the trust was not a 'consumer' because providing employee housing was for a commercial purpose. The Supreme Court allowed the appeal, clarifying that 'commercial purpose' requires a close nexus between the purchase and profit-making. Since providing employee accommodation is an employer's welfare duty, not directly tied to profit generation, the trust qualifies as a consumer. The case was remanded for merit hearing.

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Consumer Protection Definition of Consumer Commercial Purpose Housing Services Employer Welfare

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