In Brief
The Supreme Court examined whether a company borrowing a project loan for film post-production qualifies as a "consumer" under the Consumer Protection Act, 1986. A bank had been held liable by the consumer commission for wrongfully reporting the company as a defaulter. The Supreme Court held that a borrower availing a loan facility with the dominant purpose of generating profit through commercial activity falls outside the definition of "consumer" and thus cannot seek relief in consumer forums. The Court set aside the consumer commission's order for want of jurisdiction, directing the company to pursue remedies in other appropriate forums like civil courts or Debts Recovery Tribunals.
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