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November 2009

Deficiency in service — person — includes company : Consumer Protection Act S. 2(1)(m).

By Dr. K. Shivaram, Ajay R. Singh, Advocates
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7. Deficiency in service — person — includes company : Consumer Protection Act S. 2(1)(m).

[ Karnataka Power Transmission Corporation Ltd. & Anr. v. Ashok Iron Works P. Ltd. with Ors., AIR 2009 SC 1905]

The definition of term person was never intended to exclude a juristic person like company. The definition u/s.2(1)(m) is inclusive and not exhaustive.

The Court held that non supply of electricity to consumer by transmission company within time agreed upon even if the consumer is a manufacturing unit, amounts to deficiency in service as per the definition of consumer as it stood before 2002 Amendment. Therefore the complaint against transmission company is maintainable before Consumer Forum.

The Court further observed that u/s.2(1)(o) ‘service’ means service of any description which is made available to potential users and includes the provision of facilities in connection with supply of electrical or other energy. ‘Deficiency’ u/s.2(1)(g) means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service. As indicated in the definition of ‘service’, the provision of facilities in connection with supply of electrical energy is a service. Supply of electricity by the Board or for that matter KPTC to a consumer would be covered u/s.2(1)(o) being ‘service’ and if the supply of electrical energy to a consumer is not provided in time as is agreed upon, then u/s.2(1)(g), there may be a case for deficiency in service.

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