Recognition of Consumer Status Despite Non-Payment and Guidelines on Pecuniary Jurisdiction: NCDRC in Aashna Roy v. Yogesh Deveshwar & Another

Recognition of Consumer Status Despite Non-Payment and Guidelines on Pecuniary Jurisdiction: NCDRC in Aashna Roy v. Yogesh Deveshwar & Another

Introduction

The case of Aashna Roy vs. Yogesh Deveshwar And Another Opp. Party(S) is a landmark judgment delivered by the National Consumer Disputes Redressal Commission (NCDRC) on September 21, 2021. The dispute arose from allegations of deficient service and medical negligence in hair treatment provided by ITC Company Ltd. and its affiliate, ITC Hotels Ltd., at the Salon of Hotel ITC Maurya, New Delhi. Ms. Aashna Roy, the complainant, sought compensation for the alleged misconduct and the subsequent physical and mental trauma suffered.

Summary of the Judgment

Ms. Aashna Roy approached the NCDRC alleging that during her visits to the Salon of Hotel ITC Maurya, she received substandard hair cutting and treatment services. She claimed that a salon staff member, despite her specific instructions, severely cut her hair without her consent and later subjected her to a harmful hair treatment that damaged her scalp. She further alleged negligence and unprofessional behavior by the salon staff, leading to significant personal and professional losses.

The Opposite Parties, ITC Company Ltd. and ITC Hotels Ltd., contested the complaint on grounds including mis-joinder of parties and the allegation that Ms. Roy was not a 'consumer' as per the Consumer Protection Act, 1986. They also challenged the pecuniary value of the claimed compensation.

Upon thorough examination, the NCDRC found merit in the complainant's assertions, recognizing her as a consumer despite the initial non-payment for services. The commission awarded her a compensation of ₹2 Crores for the harassment, humiliation, and mental trauma endured.

Analysis

Precedents Cited

The judgment extensively references several precedents to substantiate its conclusions:

  • Tristar Consultants Vs. V Customer Services India Pvt. Ltd. - Discusses mis-joinder of parties.
  • Amarjit Singh Vs. Gagandeep Singh & Ors. - Clarifies the scope of service providers within consumer disputes.
  • V. C. Sindhwani Vs. The PNB Employee Co-operative Thrift and Credit Society & Anr. - Pertains to the categorization of service providers.
  • Hrushukesh Panda Vs. Indramani Swain & Anr. - Deals with director liability.
  • Paschim Gujarat Vij Company Ltd. v. Manibhadra Ispat Ltd. - Relates to the responsibilities of service providers.
  • Charan Singh v. Healing Touch Hospital & Ors. - Offers guidance on compensation determination.

These precedents collectively informed the commission's stance on the definition of a consumer, mis-joinder of parties, and the extent of liability and compensation.

Legal Reasoning

The core legal reasoning in this judgment revolves around two pivotal aspects:

  • Definition of a Consumer: The commission deliberated on whether Ms. Roy qualifies as a consumer under Section 2(1)(d) of the Consumer Protection Act, 1986. Despite the initial failure of her payment transaction, the issuance of an invoice and the provision of services positioned her within the consumer category.
  • Pecuniary Jurisdiction: Assessing the appropriateness of the claimed compensation, the commission referred to the Ambrish Kumar Shukla & Ors. vs. Ferrous Infrastructure Pvt. Ltd. judgment, emphasizing that both the value of services availed and the compensation sought determine the jurisdiction.

Additionally, the commission addressed the mis-joinder of Opposite Party No.1, Yogesh Deveshwar, concluding that his non-executive role detached him from the actual service provision, thereby rendering his inclusion unnecessary.

Impact

This judgment has significant implications for consumer protection jurisprudence:

  • Consumer Definition Expansion: It broadens the interpretation of a 'consumer' to include individuals who encounter service deficiencies even when initial payment fails but services are rendered.
  • Pecuniary Range Clarification: It provides clearer guidelines on assessing pecuniary jurisdiction by considering both service value and compensation claims.
  • Party Joinder Protocol: It underscores the necessity for precise party inclusion in complaints, ensuring that only those directly accountable are named.
  • Compensation Framework: Sets a precedent on awarding substantial compensation based on the gravity of personal and professional harm suffered due to service negligence.

Complex Concepts Simplified

1. Consumer Definition under the Act

Under Section 2(1)(d) of the Consumer Protection Act, 1986, a 'consumer' is someone who buys any goods or avails of any services for consideration. In this case, even though Ms. Roy's payment was initially declined, the issuance of an invoice indicated an intention to engage in a transactional relationship, thereby classifying her as a consumer.

2. Pecuniary Jurisdiction

Pecuniary jurisdiction refers to the authority of a court or commission to hear a case based on the monetary value involved. For consumer forums, this involves both the cost of the goods/services availed and the compensation sought. The NCDRC determined that the claimed ₹3 Crores fell within its jurisdiction after assessing the service value and the nature of the compensation.

3. Mis-joinder of Parties

Mis-joinder occurs when an unrelated party is included in a lawsuit. In this judgment, Yogesh Deveshwar was deemed improperly joined as he held a non-executive position and had no direct involvement in the service provision, leading to his exclusion from the proceedings.

Conclusion

The NCDRC's judgment in Aashna Roy v. Yogesh Deveshwar & Another Opp. Party(S) reinforces the protective scope of the Consumer Protection Act, 1986 by affirming a broader interpretation of 'consumer'. It also delineates clear guidelines on pecuniary jurisdiction and the importance of accurate party inclusion in legal complaints. The substantial compensation awarded underscores the judiciary's commitment to addressing service deficiencies and the resultant personal and professional hardships faced by consumers. This case serves as a crucial reference for future consumer disputes, emphasizing meticulous adherence to legal definitions and procedural proprieties.

Case Details

Year: 2021
Court: National Consumer Disputes Redressal Commission

Judge(s)

R.K. Agrawal, PresidentS.M. Kantikar, Member

Advocates

In person for the Complainant;Mr. Parag P. Tripathi, Sr. Advocate and Mr. L.K. Bhushan, Ms. Aditi Awasthy and Mr. Srinivasan Ramaswamy, Advocates with him. for the Opp. Party.

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