[Opinion] Advocates, Doctors, Consultants, and Other Professionals No Longer Covered Under the Consumer Protection Act?

V S Datey – [2024] 162 taxmann.com 662 (Article)

In a recent judgment, in Bar of Indian Lawyers v. D. K. Gandhi PS National Institute of Communicate Diseases [2024] 162 taxmann.com 461 (SC), it has been held that the Consumer Protection Act does not cover Professions or services rendered by professionals, including Advocates. The reason given was that the very purpose and object of the Consumer Protection Act was to protect consumers from unfair trade practices and unethical business practices. The Legislature never intended to include the Professions or the services rendered by the Professionals within the purview of the Consumer Protection Act. The legal profession is sui generis (of its own kind, unique), which is unique in nature and cannot be compared with any other profession. A service hired or availed of an Advocate is a service under “a contract of personal service” and, therefore, would fall within the exclusionary part of the definition of “Service” contained in Section 2(42) of the Consumer Protection Act.

Judgment applicable to all professionals and has wide implications – This judgment has wide implications, as it would cover not only Advocates but other professionals like doctors, auditors, accountants, teachers, consultants, software professionals, architects, investment advisors and whatnot.

Judgment needs review – It is felt that the judgment needs review for the reasons discussed below.

Relevant provisions of the Consumer Protection Act

Provisions relevant to present discussions are summarised below.

Wide Scope of Consumer Protection Act – The Consumer Protection Act shall apply to all goods and services – section 1(4) of the Consumer Protection Act, 2019.

The purpose is an easy and speedy remedy – As per the preamble to the Act, the purpose of the Act is to protect consumers’ interests. In Laxmi Engineering Works v. P.S.G. Industrial Institute [1995] 3 SSC 583, it was observed that the object of the Act is to protect the consumer from exploitative and unfair trade practices and provide inexpensive, easily accessible and speedy remedies.

Who is consumer – “Consumer” means any person who – (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid – and includes any beneficiary of such service – but does not include a person who avails of such service for any commercial purpose – Section 2(7) of Consumer Protection Act, 2019.

Service – “Service” means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service – Section 2(42) of Consumer Protection Act, 2019.

Provisions in CPA are in addition to and not in derogation of any other law. Section 100 of the Consumer Protection Act, 2019 [earlier section 3 of 1986 Act] states that provisions of the Act are in addition to and not in derogation of any other law. In Trans Mediterranean Airways v. Universal Exports [2011] 10 SCC 316, it was held that Consumer Forum has jurisdiction even where remedy available under other statutes (Carriage by Air Act, 1972 in this case) – the same view in National Seeds Corporation Ltd. v. M Madhusudhan Reddy [2012] 2 SCC 506.

Click Here To Read The Full Article