Defective Goods

and the
Consumer Protection Act
 What is Goods?
• Section 2 (7) of the Sale of Goods Act, 1930
“Goods” to mean every kind of movable
property
• other than actionable claims and money; and
• includes stock and shares, growing crops,
grass, and things attached to or forming part
of the land which are agreed to be severed
before sale or under the contract of sale

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 Meaning of Defective Goods
• Defect in goods means any fault, imperfection
or shortcoming in the quality, quantity,
potency, purity or standard which is required
to be maintained by or under any law for the
time being in force or under any contract,
express, or implied, or as is claimed by the
trader in any manner whatsoever in relation
to any goods. [Section 2 (1)(f)]
• Quality – say, conforms to (ISI) BIS standards/
AGMARK ‘A’ Grade; pressure cooker burst - T.T. (P.)
Ltd. v. Akhil Bhartiya Grahak Panchayat (1996) CPJ
239, NC; rapeseed oil adulterated with toxic
substances; gas-cylinders with excessive gas.
• Quantity – Short weighing (Nestle’s case); Dettol’s
case 135 gms pack of soap cake found to contain 128
gms
• Potency – Drugs (25 mg.)
• Purity – Honey (Guaranteed Pure)
• Standard – Under any law/contract/ claimed by
the trader
 Who is a Consumer?
• Buyer for consideration (except for re-sale or
commercial purpose) and any other user with
the consent of the buyer.
• Person buying goods for self-employment is a
consumer- When goods are bought for
commercial purpose and such purchase
satisfies the following criteria :

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• the goods are used by the buyer himself;
• exclusively for the purpose of earning his
livelihood;
• by means of self-employment,
then such use would not be termed as use for
commercial purpose under the Act, and the
user is recognised as a consumer.

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Examples :
1. A buys a truck for plying it as a public carrier
by himself, A is a consumer.
2. A buys a truck and hires a driver to ply it, A is
not a consumer.
3. A has one cloth shop. He starts another
business of a photocopier and buys a photocopy
machine therefor. He hasn’t bought this machine
exclusively for the purpose of earning livelihood.
He is not a consumer under the Act.
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 Relief available to Consumers

Besides other remedies:

– To remove the defect pointed out by the
appropriate laboratory
– To replace the goods with new defect free goods
of similar description
– To return price
– To pay compensation for any loss or injury
suffered
 Where to File Complaint?

• District Forum
If the value of goods/Services including
Compensation Claimed is upto Rs. 20 Lakhs.
• State Commission: Exceeds Rs 20 Lakhs but does not
exceed Rs. 1 Crore + Appeals against the orders of
District Forum
• National Commission: Above Rs. 1 Crore + Appeals
against the orders of State Commission
Relief will depend upon whether breach has been of
Condition or Warranty

• We have already learnt about conditions and

Warranties and the reliefs available.