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KARNATAKA POWER TRANSMISSION CORPN. & ANR. versus ASHOK IRON WORKS PVT. LTD.

Citation: [2009] 1 S.C.R. 1109 · Decided: 09-02-2009 · Supreme Court of India · Bench: MARKANDEY KATJU · Disposal: Disposed off

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Judgment (excerpt)

[2009] 1 S.C.R.1109 
-
i 
KARNATAKA POWER TRANSMISSION CORPN. & ANR. 
A 
v. 
ASHOK IRON WORKS PVT. LTD. 
(Civil Appeal No 1879 of 2003) 
FEBRUARY 9, 2009 
B 
[MARKANDEY KAT JU AND R.M. LODHA, JJ.] 
,. 
CONSUMER PROTECTION ACT, 1986: 
ss. 2(1) (d), 2(1)(m), 2(1)(o) and 2(1)(g) - 'consumer', c 
'person', 'service' 'deficiency' - Complaint by a manufacturing 
unit claiming damages from Kamataka Power Transmission 
Corporation for delay in supply of electricity relating to the 
period prior to amendment of s.2(1)(d)(ii) by Act 62 of 2002 -
Held: Definition of 'person' in s.2(1)(m) is inclusive and not D 
..... 
~ 
exhaustive - Company is a person within the meaning of 
s.2(1)(d) r/w s.2(1)(m) - Supply of electricity to a consumer 
by KPTC is not sale of electricity, but would be covered u/s 
2(1)(o) being service and, if the supply is not provided within 
the time stipulated, there may be a case of deficiency of E 
service as provided uls 2(1 )(g)-Therefore, the complaint is 
maintainable - Interpretation of Statutes. 
WORDS AND PHRASES : 
• 
Expression 'includes' as occurring in s. 2(1 )(m) of F 
Consumer Protection Act, 1986 - Connotation of. 
The respondent in C.A. No. 1879 of 2003, a Private 
Limited Company engaged in manufacture of iron 
products, filed a complaint under the Consumer G 
Protection Act, 1986 before the District Consumer 
Disputes Redressal Forum claiming damages from the 
-t 
appellant-Karnataka Power Transmission Corporation for 
<" • 
delay in supply of electricity. It was stated that the money 
demanded was deposited on 1.2.1991 whereas the 
1109 
H 
1110 
SUPREME COURT REPORTS 
[2009] 1 S.C.R. 
A supply of power commenced in the month of November, 
1992. The appellant-Corporation raised a preliminary 
objection as to maintainability of the complaint 
contending that the complainant was engaged in 
commercial activity and electricity being 'goods', sale 
B thereof to a commercial consumer for commercial 
purpose was outside the purview of the Act. The District 
Forum rejected the complaint as not maintainable. The 
State Commission and the National Commission having 
held the complaint maintainable, the Corporation filed the 
c appeal. 
The appellant in Civil Appeal No.17784 of 2002, a sole 
proprietor of a battery charging unit, filed a complaint 
before the District Forum challenging the demand raised 
by the Karnataka Power Transmission Corporation. The 
D District Forum held in favour of the appellant. But the 
State Commission and the National Commission having 
held that the complainant was not a 'consumer' within the 
meaning of s. 2 (1) (d) of the Act, he filed the appeal. 
E 
The questions for consideration before the Court 
were: (i) "Is a private limited company a 'person' as 
contemplated under Section 2 (1) (d) of the Consumer 
Protection Act, 1986? (ii) "Whether the supply of 
electricity by KPTC to a consumer is sale and purchase 
F of goods within the meaning of Section 2 (1) (d) (i) of the 
Act, 1986?" and (iii) whether the supply of electricity by 
KPTC would come within the ambit of s. 2 (1) (o) of the 
1986 Act so as to be covered within the purview of sub-
clause (ii) of Clause (d) of s. 2 (1) of the Act? 
G 
Dismissing Civil Appeal No. 1879 of 2003 and 
allowing Civil Appeal No. 7784 of 2002, the Court 
HELD:1. Section 2(1 )(m) of the Consumer Protection 
Act, 1986. While defining 'person' cannot be held to be 
H restrictive or confined to the four categories enumerated 
. -
KARNATAKA POWER TRANSMISSION CORPN. & ANR. 
1111 
v. ASHOK IRON WORKS PVT. LTD. 
-
"f 
therein, namely, (i) a firm whether registered or not; (ii) a 
A 
Hindu undivided family; (iii) a co-operative society; and 
(iv) every other association of persons whether registered 
under the Societies Registration Act, 1860 or not. It is not 
said in terms that 'person' shall mean one or other of the 
four things enumated, but that it s~all include them. The 
B 
definition of 'person' in s.2(1 )(m) is inclusive and not 
exhaustive. There is no doubt that company is a person . 
within the meaning of s.2(1)(d) read with s.2(1)(m). [para 
15 and 18] [1119-E; 1120-B-D] 
The South Gujarat Roofing Tiles manufacturers c 
Association and Anr. v. The State of Gujarat and Anr. (1976) 
4 SCC 601 and Reserve Bank of India v.Peer/ess General 
Finance and Investment Co. Ltd. and Ors. (1987) 1 SCC 424, 
referred to 
D 
_, .. 
Lord Watson in Dilworth v. Commissioner of Stamps 
(1899) AC 99, referred to 
2.1. Supply of electricity 

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