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Sunday, June 14, 2009

Lawyers not liable under Consumer Protection Act, 1986: SC

The State Commission, Delhi, held that services rendered by a Lawyer would not come within the ambit of s. 2(1)(o) of the Consumer Protection Act, 1986, as the client executes the power of attorney authorizing the Counsel to do certain acts on his behalf and there is no term of contract as to the liability of the lawyer in case he fails to do any such act. The State Commission held that it is a unilateral contract executed by the client giving authority to the lawyer to appear and represent the matter on his behalf without any specific assurance or undertaking. This verdict was reversed by the National Consumer Disputes Redressal Commission on the ground that lawyers are rendering a service. They are charging fees. It is not a contract of personal service and that there was no reason to hold that they are not covered by the provisions of the Consumer Protection Act, 1986. It was held that though a Lawyer may not be responsible for the favourable outcome of a case as the result/out come does not depend upon only on lawyers' work, but, if there was deficiency in rendering services promised, for which consideration in the form of fee is received by him, then the lawyers can be proceeded against under the Consumer Protection Act. The said judgement of the NCDRC has now been stayed by the Supreme Court.

 

1 comments:

Rishabh Sancheti said...

Hello !

The blog posts are really informative. However, since the information may be used/relied upon by non-lawyers, it is crucial to be cautious with the information. The title of post " Lawyers not liable under Consumer Protection Act, 1986: SC" (Sunday, June 14, 2009) conclusively establishes that vide the case in issue, the Supreme Court of India has decided that lawyers are not liable under the Consumer Protection Act. However, the content of the same post, does not support such stance since the SC has only granted an interim order at this stage.

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Rishabh Sancheti
Advocate

European Master in Law and Economics.
Erasmus Mundus Scholar.
LL.M., Universität Hamburg.
Diploma di Master Universitario di I livello in Law and Economics, Universita Degli Studi Di Bologna.
LL.M., Universität Wien.
B.B.A.-LL.B. (Honors) (Cum Laude), National Law University, India.

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