In Brief
A charitable girls' hostel operated by a registered society for underprivileged tribal students sought compensation for defective tiles supplied by a tile manufacturer that developed black and white spots after installation. The District Forum and State Commission both found the society to be a 'consumer' entitled to protection and awarded ₹2 lakhs in damages plus interest. The National Commission reversed this on appeal, holding the society was a commercial establishment. The Supreme Court allowed the appeal, holding that a non-profit charitable institution providing social services qualifies as a consumer, and that the National Commission exceeded its jurisdiction by overturning concurrent factual findings without legal basis. The judgment was restored with costs awarded to the society.
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