Why Supreme Court ruled that a lawyer cannot be sued for providing faulty ‘service’

Sub: Polity

Sec: Legislation in news

Tag: Consumer Protection Act 2019

Context:

A lawyer’s services must be treated differently from any other business or trade, the Supreme Court ruled on Tuesday.

About the recent case:

Justices Bela M Trivedi and Pankaj Mithal held that the success of “professionals” often depends on factors outside their control and clients cannot take legal action against their lawyers by claiming they did not provide proper “service” as per the Consumer Protection Act.
The judgment stems from an appeal against the 2007 National Consumer Disputes Redressal Commission’s (NCDRC) decision.
It was held that lawyers’ services fall under the definition provided for the term under Section 2(o) of the Consumer Protection Act, 1986 (CPA).
If there is any deficiency in service, the NCDRC held that a complaint could be filed under the CPA.

What arguments were made by lawyer groups against being liable under CPA?

The majority of their arguments hinged on the idea that the legal profession must be differentiated from other businesses or trades and that even among other professions, lawyers occupy a unique space.
The petitioners argued that, unlike other professionals, lawyers cannot act as a “mouthpiece” for their client even after payment of fees as lawyers have duties to the court and their opponent as per the Bar Council of India Rules, 1961.
The petitioners also argued that there are existing remedies for professional misconduct in the Advocates Act, 1961, and the Bar Councils (both at the state and national level) are given disciplinary powers by the Advocates Act in such cases.
Regarding the conduct of advocates, the petitioners argued that the Advocates Act would be applied as opposed to the CPA.

Supreme Court views:

The court drew the distinction between the terms ‘business’ or ‘trade’ and profession.
‘Business’ or ‘trade’ have a commercial aspect and cannot be used interchangeably with the term ‘profession’ which normally would involve some branch of learning or science.
Success in the latter field would depend on “factors beyond a man’s control” and cannot be treated equally with a businessman or a service provider who falls under the CPA.
The court also stated that the SC’s decision in Indian Medical Association v V.P. Shantha (1995) — where the court held that services by medical practitioners would fall under the CPA — should be revisited by a larger SC bench.
The Bench considered whether advocates enter a “contract of personal service” with their clients, exempting them from falling under the CPA.
The term ‘service’ is defined very broadly under the CPA but excludes free services and contracts of personal service.

How can lawyers be sued in India?

Lawyers cannot be dragged to consumer courts over alleged deficiencies in service.
They can still be sued in ordinary courts for negligence and other malpractice.

About Consumer Protection Act 2019:

The Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms.
It defined 6 rights of the consumers which include:
- Right to be protected against the marketing of goods, products or services which can be hazardous to life and property
- Right to be informed about the quality, quantity, potency, purity, standard and price of goods, products and services
- Right to be assured of access to goods, products and services at competitive prices.
- Right to be heard at appropriate forums
- Right to seek redressal against unfair trade practices that are involved in exploitation of customers
- Right to consumer awareness
It proposes to set up the Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers.

About Bar Council of India:

Bar Council of India is a statutory body established under section 4 of the Advocates Act 1961.
It regulates the legal practice and legal education in India.
Its members are elected from amongst the lawyers in India and represent the Indian bar.

About Advocates Act 1961:

The act was enacted to amend and consolidate the law relating to legal practitioners and consolidate the law relating to legal practitioners and to provide for the constitution of Bar Council and All India Bar.