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The Joint Labour Commissioner and Registering Officer and Anr. v. Kesar Lal

Civil Appeal · 2020 INSC 304Decided 17 Mar 2020
Civil Appeal No. 2014 of 2020
Dr. Justice D.Y. Chandrachud · Justice Ajay Rastogi

Background

A registered construction worker under the Building and Other Construction Workers' Act, 1996 applied for a statutory marriage-assistance grant for his daughter's wedding. The application was rejected nine months later, along with 326 others, on technical grounds. The worker filed a consumer complaint, and both the State and National Consumer Disputes Redressal Commissions ruled in his favour, prompting the Labour Department to appeal to the Supreme Court on the question of whether a welfare-scheme beneficiary who contributes only a token/nominal sum counts as a "consumer."

Decision Breakdown

The Supreme Court, with an amicus curiae assisting given the issue's wide significance, held that a registered construction worker who contributes to the statutory welfare fund (even a modest, prescribed amount) is a "beneficiary of services" under Section 2(d) of the Consumer Protection Act, 1986, and therefore a "consumer." The Court reasoned that the welfare board's functions are not sovereign functions, the services are not rendered free of charge, and the adequacy of the contribution relative to the scheme's cost is irrelevant to this classification. The appeal was dismissed, upholding the consumer forums' award (as modified on interest rate by the National Commission).

Lesson Learnt

A citizen who registers under a government welfare scheme and pays even a small statutory contribution can hold the implementing authority accountable through consumer courts if the promised benefit is wrongly denied.

Official source (sci.gov.in)View Judgment (PDF)

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