No Privity Of Contract, No Consumer Status Under Consumer Protection Act

Introduction

The Supreme Court of India in the matter of M/s. Citicorp Finance (India) Limited vs. Snehasis Nanda¹ recently delivered a judgment clarifying the scope of the term "consumer" under the Consumer Protection Act, 2019. The Court overruled the final judgement and order of the National Consumer Dispute Redressal Commission (NCDRC) and held that a complainant must have a direct contractual relationship with the opposite party to be considered a "consumer" as defined in the Act. This decision has far-reaching implications for consumer law and the interpretation of contractual relationships in consumer disputes.

Background of the Case

The case involved a dispute between the flat seller, Snehasis Nanda (Respondent), and Citicorp Finance (India) Limited (Appellant). The Respondent had already mortgaged the flat with ICICI Bank to obtain home loan facility for the said flat in the year 2006. Later, the Respondent sold the flat to Mr. Mubarak Vahid Patel