Borrowers Taking Loans for Profit Are Not 'Consumers' Under Consumer Protection Act : Supreme Court
- Case Name: The Chief Manager Central Bank of India v. Ad Bureau Advertising Pvt Limited
- Judge(s): Justice Sudhanshu and Justice Prashant Kuma
The Supreme Court ruled that a borrower is not considered a "consumer" under the Consumer Protection Act, 1986, if the loan is for a profit-generating purpose.
In this case, the Central Bank of India had provided a loan for post-production of a film, and the Ad Bureau claimed that the bank wrongly reported it as a defaulter to CIBIL.
The NCDRC had ordered the bank to pay compensation, but the Supreme Court overturned the decision, stating that the loan was a commercial transaction and not covered under the Consumer Protection Act.
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