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Commercial Law

Notes Manufacturer. The expression ‘Manufacturer’ for the purpose of this Act, means any of
the following persons: (i) A person who makes or manufactures any goods or part thereof.
(ii) A person who does not make or manufacture any goods but assembles parts thereof made
or manufactured by others. But, where a manufacturer dispatches any goods or parts thereof to

any branch office maintained by him, such branch office shall not be deemed to be manufacturer

even though the parts so dispatched to it are assembled at such branch office and are sold or

distributed from such branch office. (iii) A person who puts or causes to be put his own mark on
any goods made or manufactured by any other manufacturer.
National Commission: ‘National Commission’ means the National Consumer Disputes Redressal
Commission established under clause (c) of Sec.9. This section provides that there shall be
established for the purposes of this Act a National Consumer Disputes Redressal Commission

established by the Central Government by notification. The Government vide powers conferred
upon it under the said clause established a National Commission in 1987.

Example: A dealer in precious stones and gems had sent four parcels of gems by
registered post duly insured to a consignee in U.S.A., but the parcels did not reach the destination.
The investigation revealed that the parcels were either lost in transit or were stolen. The postal
authorities admitted their liability and made payment of postal charges in respect of each parcel.
The insured agreed to settle the claim. However, he insisted that the payment of the insured
amount should be made in U.S. dollars. The insurer denied their liability to pay in dollars to the
dealer. The dealer made a complaint to the National Commission.
The dealer would not succeed as he continues to be the owner of the goods and the title in the
goods has not passed to the consignee. It is the dealer who has the insurable interest in the
goods.

Service

‘Service’ means service of any description which is made available to potential users and includes

the provision of facilities in connection with banking, financing, insurance, transport, processing,
supply of electrical or other energy, boarding or lodging or both, housing construction,
entertainment, amusement or the purveying of news or other information, but does not include
the rendering of any service free of charge or under a contract of personal service.

Example: Maina Devi’s husband took a life insurance policy for ` 50,000. Before the second
premium fell due, he died due to sudden illness. The claim made by her was not entertained for
as long as 14 years. It was only when she got her miseries published in newspapers and certain
MPs took up the matter in Parliament that she was sent a cheque for ` 50,39.

She made a complaint to the National Commission for deficiency of service by Life Insurance
Corporation of India. The National Commission held that the Corporation had been highly
negligent in the performance of its services. Maina Devi, the complainant, had suffered hardship
and loss on account of deficiency in service. She was held entitled to interest @12% p.a. from the

date of expiry of 3 months from the date of death of the assured till the amount was paid to her.
The Commission also awarded her compensation of ` 15,000 for mental torture and harassment.

Restrictive Trade Practice

This definition was introduced in the Act vide Amendment Act, 1993. It has now been amended

by the Amendment Act, 2002. It provides that a “restrictive trade practice” means a trade practice
which tends to bring about manipulation of price or its conditions of delivery or to affect fl ow

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