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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Consumer RightsSupreme Court of India

Today Merchandise Pvt. Ltd. v. Anil Kumar Luthra

Civil Appeal · 2020 INSC 20Decided 8 Jan 2020
Civil Appeal No. 80 of 2020
Dr. Justice D.Y. Chandrachud · Justice Hrishikesh Roy

Background

The appellant company ran a holiday voucher scheme advertising "free gifts" (such as a laptop, mobile phone and television) to subscribers who made a specified number of referrals of friends and associates. The respondent purchased three vouchers for Rs 17,994 but made no referrals. He nonetheless claimed before the District Consumer Forum that he was entitled to the free gifts, asserting a company employee had separately assured him he would receive them regardless. The District Forum, State Commission and National Commission (NCDRC) all ruled in his favour and awarded him the gifts plus compensation.

Decision Breakdown

The Supreme Court examined the scheme's own terms and a contemporaneous email to the respondent, both of which made clear that the "free gifts" were conditional on the subscriber making referrals, something the respondent admittedly never did. The Court found that ordering the company to hand over gifts worth far more than the amount the respondent had paid, without him meeting the referral condition, would produce a "manifestly absurd" result contrary to the agreement's own terms. It held that all three consumer fora had erred in confirming the District Forum's order, allowed the appeal, set aside the NCDRC's judgment, and dismissed the original complaint.

Lesson Learnt

A promotional "free gift" offer is a conditional contract, not an unconditional entitlement: if the advertised conditions (like referrals) are never satisfied, a consumer cannot compel the business to honour the reward regardless of a separate, unproven verbal assurance.

Today Merchandise Pvt. Ltd. v. Anil Kumar Luthra – Legal Case Shots | LegalAware