In a pivotal Supreme Court judgment, the Court dismissed Shriram Chit’s appeal, reiterating the onus of proof in consumer disputes. The case centered on whether consumers availed services under a chit fund scheme for commercial purposes. The Supreme Court ruled that the service provider must prove the services were for commercial purposes. The provider must adhere to the standard of “preponderance of probabilities.”
The judgment clarified that the complainant does not need to prove the service was for self-employment unless the service provider meets its initial burden. Shriram Chits, however, failed to provide adequate evidence and relied on assertions. This decision upheld the findings of the District Forum, State Forum, and the National Consumer Disputes Redressal Commission. This underscores the necessity for service providers to present substantial proof when claiming a commercial purpose in consumer disputes. This ruling strengthens consumer protection by ensuring that service providers cannot evade liability through unsubstantiated claims.
Title: Shriram Chits (India) (P) Ltd. v. Raghachand Associates, 2024 SCC OnLine SC 851