Created byFuzzy Cloud

Supreme Court of India

BAR OF INDIAN LAWYERS THROUGH ITS PRESIDENT JASBIR SINGH MALIKversusD. K. GANDHI PS NATIONAL INSTITUTE OF COMMUNICABLE DISEASES AND ANR.

Citation
2024 INSC 410
Decided
14 May 2024
Disposal
Directions issued

Holding

Services hired or availed of an advocate constitute a contract of personal service and are excluded from the definition of "service" under the Consumer Protection Act, 2019, rendering the complaint non‑maintainable.

Summary

The Bar of Indian Lawyers filed a civil appeal challenging a National Consumer Disputes Redressal Commission (NCDRC) order that allowed a consumer complaint alleging deficiency in service against an advocate. The appellant argued that legal services are a "contract of personal service" and therefore fall within the exclusionary clause of the definition of "service" under the Consumer Protection Act, 1986 (re‑enacted in 2019). The Court examined the legislative intent of the CP Acts, the sui generis nature of the legal profession, and the control exercised by clients over advocates. It held that the legislature never intended to bring professional services, especially those of lawyers, within the ambit of consumer protection law. Consequently, the services of an advocate are excluded from the definition of "service" and a complaint under the CP Act is not maintainable. The NCDRC judgment was set aside and the appeals were allowed.

Issues considered

  • Whether a complaint alleging deficiency in service against an advocate is maintainable under the Consumer Protection Act, 1986/2019.
  • Whether the services of an advocate fall within the definition of "service" under s.2(1)(o) of the 1986 Act and s.2(42) of the 2019 Act.
  • Whether the legislature intended to include professional services, particularly legal services, within the scope of the Consumer Protection Acts.
  • Whether the legal profession is sui generis and thus exempt from consumer protection law.
  • Whether the relationship between advocate and client constitutes a "contract of personal service" excluded by the Act.

Legislation cited

Subjects

Consumer Protection ActDeficiency in serviceLegal professionSui generisContract of personal serviceAdvocates ActProfessional services exclusionConsumer lawLegislative intentBar Council of India

Judgment

                  [2024] 6 S.C.R. 484 : 2024 INSC 410

           Bar of Indian Lawyers Through its President
                        Jasbir Singh Malik
                                v.
               D. K. Gandhi PS National Institute of
                Communicable Diseases and Anr.
                       (Civil Appeal No. 2646 of 2009)
                                  14 May 2024
              [Bela M. Trivedi* and Pankaj Mithal,* JJ.]

                            Issue for Consideration
       Matter pertains to whether a complaint alleging “deficiency in
       service” against advocates practising legal profession, would be
       maintainable under the Consumer Protection Act, 1986 as re-
       enacted in 2019; whether “Service” hired or availed of an advocate
       would fall within the definition of “Service” contained in the C.P.
       Act, 1986/2019; whether the legislature ever intended to include
       the professions or services rendered by the professionals within
       the purview of the CP Act 1986 as re-enacted in 2019; whether the
       legal profession is sui generis; and whether service hired or availed
       of an advocate could be said to be the service under “contract of
       personal service” so as to exclude it from the definition of “Service”
       contained in s. 2(42) of the CP Act 2019.

                                   Headnotes†
       Consumer Protection Act, 1986 – Consumer Protection Act,
       2019 – Complaint alleging “deficiency in service” against
       Advocates practising Legal Profession – Maintainability –
       District Forum held that it had the jurisdiction to adjudicate
       upon the dispute between the parties and decided the
       complaint in favour of the complainant – However, the State
       Commission held that the services of lawyers/advocates did
       not fall within the ambit of “service” defined u/s. 2(1)(o) of
       the 1986 Act – In Revision, the National Commission held
       inter alia that if there was any deficiency in service rendered
       by the Advocates/Lawyers, a complaint under the 1986 Act
       would be maintainable – Correctness:
       Held: Services hired or availed of an Advocate would be that of
       a contract ‘of personal service’ and would thus, stand excluded
       from the definition of “service” contained in the s. 2(42) of the CP
* Author
[2024] 6 S.C.R.                                                                485

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     Act, 2019 – In view thereof, the complaint alleging “deficiency in
     service” against Advocates practising legal profession would not
     be maintainable under the CP Act, 2019 – Thus, the impugned
     judgment passed by the National Commission set aside [Paras
     42, 43] – Held: Per Pankaj Mithal, J. (Concurring) In the era of
     globalization, a law has to be applied in context with the prevailing
     situation of the country, nonetheless, on the basis of the common
     resolution of the UNO, laws must have a uniform application in
     all nations – It is, thus, essential that the consumer protection
     laws in all countries may somewhat have universal application
     and be confined to ‘consumers’ only i.e. to the persons who buys
     any goods for consideration or hires or avails of any service
     for consideration, impliedly excluding the professional services
     especially that of a lawyer – In doing so, in India also the services of
     professionals more particularly that of lawyers have to be excluded
     from consumer protection law in accordance with the intention
     expressed in enacting the same – Legislature in India as in some
     other countries, had not intended to include the services rendered
     by the professionals especially the lawyers to their client within
     the purview of CP Act, 1986 and re-enacted in 2019 – Thus, the
     view taken by the National Commission that complaint would be
     maintainable in CP Act, 1986, in respect of deficiency in service
     rendered by the lawyers, is incorrect and is set aside. [Paras 24-28]
     Consumer Protection Act, 1986 – Consumer Protection Act,
     2019 – Legislature, if intended to include the Professions or
     services rendered by the Professionals within the purview
     of the CP Act 1986/2019:
     Held: The very purpose and object of the CP Act 1986 as re-
     enacted in 2019 was to provide protection to the consumers from
     unfair trade practices and unethical business practices – Legislature
     never intended to include either the Professions or the services
     rendered by the Professionals within the purview of the said Acts
     – Other object of the Act was to provide to the consumers timely
     and effective administration and settlement of their disputes arising
     out of the unfair trade and unethical business practices – If the
     services provided by all the Professionals are also brought within
     the purview of the Act, there would be flood-gate of litigations
     in the commissions/forums established under the Act, and the
     very object of Act would be frustrated – Legislative draftsmen
     are presumed to know the law and there is no reason to assume
     that the legislature intended to include the Professions or the
486                                                               [2024] 6 S.C.R.

                        Digital Supreme Court Reports


       Professionals or the services provided by them within the ambit
       of the CP Act – Any interpretation of the Preamble or the scheme
       of the Act for construing ‘Profession’ as ‘Business’ or ‘Trade’; or
       ‘Professional’ as ‘service provider’ would be extending the scope
       of the Act which was not intended, rather would have a counter
       productive effect. [Paras 42, 19, 20, 18]
       Legal Profession – Legal Profession is sui generis or is
       different from the other Profession:
       Held: Having regard to the role, status and duties of the Advocates
       as the professionals, the legal profession is sui generis i.e unique in
       nature and cannot be compared with any other profession – Legal
       profession is different from the other professions for the reason that
       what the Advocates do, affects not only an individual but the entire
       administration of justice, which is the foundation of the civilized
       society – Legal profession is a solemn and serious profession,
       and has always been held in very high esteem – Their services
       in making the judicial system efficient, effective and credible, and
       in creating a strong and impartial Judiciary, which could not be
       compared with the services rendered by other professionals [Paras
       42, 30] – Held: Per Pankaj Mithal, J. (Concurring) Profession of
       law, as such, is regarded as sui generis i.e. which is unique – It is
       distinct from all other professions and is one of its own kind. [Para 3]
       Consumer Protection Act, 2019 – s. 2(42) – Service hired or
       availed of an Advocate, if could be said to be the service
       under a “contract of personal service” so as to exclude it
       from the definition of “Service” contained in s. 2(42):
       Held: Service hired or availed of an Advocate is a service under
       “a contract of personal service,” and thus, would fall within the
       exclusionary part of the definition of “Service” contained in s.
       2(42) – Greater the amount of direct control exercised over the
       person rendering the services by the person contracting for them,
       the stronger would be the grounds for holding it to be a “contract
       of service” – Considerable amount of direct control is exercised
       by the Client over the manner in which an Advocate renders his
       services during the course of his employment. [Paras 42, 39, 41]
       Reference to larger Bench – Three-Judge Bench decision in
       *Indian Medical Association vs. V.P. Shantha & Others holding
       inter alia that the wide amplitude of the definition of ‘service’ in
       the main part of s. 2(1)(o) of the Consumer Protection Act, 1986
[2024] 6 S.C.R.                                                           487

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     would cover the services rendered by Medical Practitioners
     within the said s. 2(1)(o) of the Act – Correctness:
     Held: Having regard to the history, object, purpose and the
     scheme of the CP Act and that neither the “Profession” could
     be treated as “business” or “trade” nor the services provided
     by the “Professionals” could be treated at par with the services
     provided by the Businessmen or the Traders, so as to bring them
     within the purview of the CP Act, the decision in *Indian Medical
     Association vs. V.P Shantha’s case to be revisited and considered
     by a larger bench – Thus, matter referred to Hon’ble the Chief
     Justice of India for consideration – Supreme Court Rules – Order
     VI r 2. [Paras 21, 24]
     Consumer Protection Act, 1986 – Consumer Protection Act,
     2019 – Scope and object of – Intention of the legislature:
     Held: The said Act was enacted to provide for the better protection
     of the interests of the consumers against their exploitation by the
     traders and manufacturers of the consumer goods, and to help
     consumers in getting justice and fair treatment in the matter of
     goods and services purchased and availed by them in a market
     dominated by large trading and manufacturing bodies – Reasons
     for re-enacting the CP Act, 2019 by the Legislature, were certain
     shortcomings found in the CP Act 1986 while administering the
     said Act, and due to the emergence of global supply chains, rise in
     international trade and rapid development of ecommerce leading to
     new systems for goods and services, new options and opportunities
     had become available to the consumers – New forms of unfair
     trade and unethical business practices also came to be developed,
     which made the consumers more vulnerable – Furthermore, there
     was not a whisper in the statement of objects and reasons either
     of the CP Act, 1986 or 2019 to include the Professions or the
     Services provided by the Professionals like Advocates, Doctors
     etc. within the purview of the Act – Professionals could not be
     called Businessmen or Traders, nor Clients or Patients be called
     Consumers. [Paras 12, 14, 15]
     Words and phrases – Definition of term “Profession” –
     Meaning and explanation of:
     Held: “Profession” would require advanced education and training
     in some branch of learning or science – Nature of work is also
     skilled and specialised one, substantial part of which would be
488                                                            [2024] 6 S.C.R.

                       Digital Supreme Court Reports


       mental rather than manual – Thus, having regard to the nature
       of work of a professional, which requires high level of education,
       training and proficiency and which involves skilled and specialized
       kind of mental work, operating in the specialized spheres, where
       achieving success would depend upon many other factors beyond
       a man’s control, a Professional cannot be treated equally or at
       par with a Businessman or a Trader or a Service provider of
       products or goods as contemplated in the Consumer Protection
       Act – Similarly, services rendered by Businessman or Trader
       to consumers with regard to his goods or products cannot be
       equated with the Services provided by Professional to his clients
       with regard to his specialized branch of profession. [Paras 15, 18]
       Legal profession – Justice Delivery System and the evolving
       jurisprudence – Role of Advocates:
       Held: Legal profession cannot be equated with any other traditional
       professions – It is not commercial in nature but is essentially
       a service oriented, noble profession – Role of Advocates is
       indispensable in the Justice Delivery System – Evolution of
       jurisprudence to keep the Constitution vibrant is possible only
       with the positive contribution of the Advocates – Advocates are
       expected to be fearless and independent for protecting the rights
       of citizens, for upholding the Rule of law and also for protecting
       the Independence of Judiciary – People repose immense faith in
       the Judiciary, and the Bar being an integral part of the Judicial
       System has been assigned a very crucial role for preserving the
       independence of the Judiciary, and in turn the very democratic set
       up of the Nation – Advocates are perceived to be the intellectuals
       amongst the elites and social activists amongst the downtrodden,
       thus are expected to act with utmost good faith, integrity, fairness
       and loyalty while handling the legal proceedings of his client –
       Being a responsible officer of the court and an important adjunct
       of the administration of justice, an Advocate owes his duty not only
       to his client but also to the court as well as to the opposite side
       [Para 29] – Held: Per Pankaj Mithal, J. (Concurring) Profession
       of law is a noble profession having an element of duty towards
       the court – Lawyers perform multi-faceted duties – They not
       only have a duty towards the client or their opponents but they
       have a paramount duty to assist the court as well – In a way,
       they are officers as well as ambassadors of the court – Thus, in
       rendering such kind of a duty to enable the courts to come to a
[2024] 6 S.C.R.                                                                   489

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     just conclusion, it may be possible that at times, the lawyers may
     earn displeasure of the client while assisting the court. [Para 2]
     Advocates Act, 1961 – Advocate – Legal Practitioner –
     Definition of, and explanation:
     Held: Advocate is included in the definition of “Legal Practitioner”
     but legal practitioner is not included in the definition of Advocate
     – Advocate is one who has been entered in any roll under the
     provisions of the Advocates Act – Law relating to legal practitioners
     and to provide for the constitution of Bar Councils and an All-India
     Bar is covered under the Advocates Act, 1961 – As per s. 29, there
     is only one class of persons entitled to practice the profession of law,
     namely Advocates, and as per s. 30, every advocate whose name is
     entered in the State roll is entitled as of right to practice in all Courts
     including the Supreme Court and before any Tribunal or any other
     authority or person before whom such advocate is by or under any
     law for the time being in force entitled to practice – Comprehensive
     provisions are contained in the Advocates Act, 1961 and the Bar
     Council of India Rules to take care of the professional misconduct of
     the Advocates, and prescribing the punishments if they are found guilty
     of professional or other misconduct by the Disciplinary Committees
     of the State Bar Council or the Bar Council of India. [Para 34]
     Consumer Protection Act, 1986 – s. 2(1)(o) – Consumer
     Protection Act, 2019 – s. 2(42) – Definition of “Service”
     contained in s. 2(1)(o) of the CP Act 1986 and in s. 2(42) of
     the CP Act 2019 – Elucidation:
     Held: Definition of “Service” contained in s. 2(1)(o) of the CP Act
     1986 and in s. 2(42) of the CP Act 2019 is the same – Definition
     of ‘service’ is divided into three parts-first part is explanatory in
     nature and defines service to mean service of any description
     which is made available to the potential users; the second part
     is inclusionary part, which expressly includes the provision of
     facilities in connection with the specific services; and the third part
     is exclusionary part which excludes rendering of any service free
     of charge or under a contract of personal service. [Paras 35, 37]
     Consumer Protection Act, 1986 – s. 2(1)(g) – Consumer
     Protection Act, 2019 – s. 2(11) – Definition of ‘Deficiency’ in
     s. 2(1)(g) of 1986 Act and s. 2(11) of 2019 Act:
     Held: There is slight difference in the definition of ‘Deficiency’ in
     s. 2(1)(g) of 1986 Act and s. 2(11) of 2019 Act. [Para 36]
490                                                              [2024] 6 S.C.R.

                        Digital Supreme Court Reports


       Advocates – Relationship between an Advocate and his
       Client – Nature of control – Unique attributes:
       Held : Advocates are generally perceived to be their client’s agents
       and owe fiduciary duties to their clients – Advocates are fastened
       with all the traditional duties that agents owe to their principals –
       Advocates have to respect the client’s autonomy to make decisions
       at a minimum, as to the objectives of the representation – Advocates
       are not entitled to make concessions or give any undertaking to the
       Court without express instructions from the Client – It is the solemn
       duty of an Advocate not to transgress the authority conferred on him
       by his Client – Advocate is bound to seek appropriate instructions
       from the Client or his authorized agent before taking any action
       or making any statement or concession which may, directly or
       remotely, affect the legal rights of the Client – Advocate represents
       the client before the Court and conducts proceedings on behalf of
       the client – He is the only link between the court and the client –
       Thus, his responsibility is onerous – He is expected to follow the
       instructions of his client rather than substitute his judgment – Thus,
       a considerable amount of direct control is exercised by the Client
       over the manner in which an Advocate renders his services during
       the course of his employment. [Para 41]
       Consumer Protection Laws – Exclusion of lawyers from
       Consumer Protection Laws – International practice/norms –
       Discussed. [Paras 6-9, 13-15, 17, 24] Per Pankaj Mithal, J.
       (Concurring)

                                Case Law Cited


            In the judgment of Bela M. Trivedi, J.
            Indian Medical Association v. V.P. Shantha & Others
            [1995] Supp. 5 SCR 110 : (1995) 6 SCC 651 – To be
            revisited.
            State of Karnataka v. Vishwabharathi House Building
            Coop. Society and Others [2003] 1 SCR 397 : (2003)
            2 SCC 412; Common Cause, A Registered Society v.
            Union of India and Others [1993] 1 SCR 10 : (1997) 10
            SCC 729; Lucknow Development Authority v. M.K. Gupta
            [1993] Supp. 3 SCR 615 : (1994) 1 SCC 243; Laxmi
            Engineering Works v. P.S.G. Industrial Institute [1995]
            3 SCR 174 : (1995) 3 SCC 583; State of West Bengal
[2024] 6 S.C.R.                                                            491

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

           v. Subodh Gopal Bose & Others [1954] 1 SCR 587 :
           AIR 1954 SC 92; Triveniben v. State of Gujarat [1989] 1
           SCR 509 : (1989) 1 SCC 678; Byram Pestonji Gariwala
           v. Union Bank of India and Others [1991] Supp. 1 SCR
           187 : (1992) 1 SCC 31; R. Muthukrishnan v. Registrar
           General, High Court of Judicature at Madras [2019] 1
           SCR 589 : (2019) 16 SCC 407; State of U.P and Others
           v. U.P. State Law Officers Association and Others [1994]
           1 SCR 348 : (1994) 2 SCC 204; Dharangadhra Chemical
           Works Ltd. v. State of Saurashtra and Others [1957] 1
           SCR 152 : AIR 1957 SC 264; Himalayan Cooperative
           Group Housing Society v. Balwan Singh and Others
           [2015] 4 SCR 616 : (2015) 7 SCC 373 – referred to.
           Simmons v. Heath Laundry Company (1924) 1 KB
           762 – referred to.


           In the judgment of Pankaj Mithal, J.
           Om Prakash v. Assistant Engineer, Haryana Agro
           Industries Corporation Ltd. and Anr. [1994] 3 SCR
           463: (1994) 3 SCC 504; Laureate Buildwell (P) Ltd. v.
           Charanjeet Singh [2021] 6 SCR 673 : (2021) 20 SCC
           401 – referred to.
           D’Orta-Ekenaike v. Victoria Legal Aid (2005) 223 CLR 1.

                       Books and Periodicals Cited
           In the judgment of Bela M Trivedi, J.
           Black’s Law Dictionary, 11th Edition; “Jackson and
           Powell on Professional Liability” 2nd supplement to the
           7th edition – referred to.

                                List of Acts
     Consumer Protection Act, 1986; Consumer Protection Act, 2019;
     Legal Practitioners Act, 1879; Bombay Pleaders Act, 1920; Indian
     Bar Councils Act, 1926; Advocates Act, 1961; Supreme Court Rules.

                             List of Keywords
     Deficiency in service; Service hired or availed of an Advocate;
     Definition of Service; Professions or services rendered by the
     Professionals; Legal Profession, sui generis; Service under contract
492                                                              [2024] 6 S.C.R.

                        Digital Supreme Court Reports


       of personal service; Unfair trade practices and unethical business
       practices; Timely and effective settlement of consumers’ disputes;
       ‘Profession’ as ‘Business’ or ‘Trade’; ‘Professional’ as ‘service
       provider’; Exclusionary part of the definition of “Service”; Reference
       to larger Bench; Decision to be revisited; Justice Delivery System;
       Role of Advocates; Independence of Judiciary; Relationship
       between an Advocate and his Client; International practices; Duty
       of advocates/lawyers towards the court.

                               Case Arising From
       CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2646 of 2009
       From the Judgment and Order dated 06.08.2007 of the National
       Consumers Disputes Redressal Commission, New Delhi in RP
       No.1392 of 2006
       With
       Civil Appeal Nos. 2647, 2648 and 2649 of 2009, Civil Appeal No. 6959
       of 2011 and Civil Appeal No. 8214 of 2017
                           Appearances for Parties
       Guru Krishna Kumar, Narender Hooda, Manoj Swarup, Rakesh
       Tikku, V. Giri, Jaideep Gupta, Shekhar Naphade, Dr. Adish C.
       Aggarwala, Sukumar Pattjoshi, Arijit Prasad, Jayant Bhushan,
       Dinesh Kumar Goswami, S. Wasim Ahmed Quadri, Vikas Singh,
       Ramkrishna Viraragvan, Vivek Subba Reddy, V.K. Singh, Sr. Advs.,
       Ashok Kumar Singh, Shantwanu Singh, Ms. Pragya Singh, Akshay
       Singh, Rahul Dubey, Daya Krishan Sharma, D K Sharma, Rohit
       Vats, Yashdeep, Akshay Amritanshu, Samyak Jain, Ayush Raj, Ankit
       Swarup, Neelmani Pant, Ms. Apoorva Singh, Rishi Bhargava, Ms.
       Yashvi Aswani, Jasbir Singh Malik, Ms. Chandni Sharma, Shaurya
       Lamba, Varun Punia, K. Maruthi Rao, Mrs. Anjani Aiyagari, Gaurav
       Yadava, Mohinder Jit Singh, Hardik Rupal, Satyam Aneja, Ms.
       Suveni Bhagat, Ms. Vishwaja Rao, Rahul Narang, Harshed Sundar,
       Nihar Dharmahikari, Shubham Rana, Piyush Goel, Mrs. Sunita
       Sharma, Ms. N. Annapoorani, Devvrat, Manoj K. Mishra, Snehashish
       Mukherjee, Ms. Rashmi Malhotra, Puneet Singh Bindra, Sachin
       Sharma, Ms. Harshita Sharma, Ms. Sachita Chawla, Ms. Swati
       Setia, Devesh Kumar Agnihotri, Rohit Pandey, Meenesh Kumar
       Dubey, Ms. Yugandhara Pawar Jha, Amrendra Kumar Singh, Vibhu
       Shanker Mishra, Kumar Gaurav, Shashank Shekhar, Vikas Gupta,
[2024] 6 S.C.R.                                                         493

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     Pratap Venugopal, Chanchal Kumar Ganguli, Manish Goswami,
     Upendra Mishra, Ratnesh Kumar, Meghraj Singh, Pradeep Kumar
     Yadav, Pankaj Kumar, Pankaj Singh, Munawwar Naseem, Siddharth,
     Mukes Kumar, Subhendu Adikari, Siddharth Batra, Rhythm Katyal,
     Ms. Archna Yadav, Chinmay Dubey, Ms. Shivani Chawla, Pratyush
     Arora, Ashutosh Chugh, Rajesh Srivastava, Gaurav Verma, M/S.
     Krishna & Nishani Law Chambers, Anil C Nishani, H. M. Harish,
     Krishna M Singh, Nikhil Jain, Rajiv Kumar, K Krishna Kumar, Vishwesh
     R Murnal, P. Prasanna Kumar, Ajit Achappa, Kiran Kumar, Hitesh
     Kumar Sharma, S.K. Rajora, Akhileshwar Jha, Amit Kumar Chawla,
     Sandeep Singh Dhingra, Ms. Niharika Dewivedi, Ms. Priya Singh,
     Sanjay Singh, Ms. Kavita Singh, Advs. for the appearing parties.
     Petitioner-in-person
     Respondent-in-person
                Judgment / Order of the Supreme Court
                                Judgment
     Bela M. Trivedi, J.
1.   An important question of law pertaining to the Legal Profession as a
     whole that has fallen for consideration before this Court is – whether a
     complaint alleging “deficiency in service” against Advocates practising
     Legal Profession, would be maintainable under the Consumer
     Protection Act, 1986 as re-enacted in 2019? In other words, whether
     a “Service” hired or availed of an Advocate would fall within the
     definition of “Service” contained in the C.P. Act, 1986/2019, so as
     to bring him within the purview of the said Act?
2.   The present set of Appeals emanate from the impugned order dated
     06.08.2007 passed by the National Consumer Disputes Redressal
     Commission (NCDRC), New Delhi in Revision Petition No.1392/2006,
     in which the NCDRC has held inter alia that if there was any deficiency
     in service rendered by the Advocates/Lawyers, a complaint under
     the Consumer Protection Act, 1986 (for short “CP Act, 1986”) would
     be maintainable.
     FACTUAL MATRIX
3.   The short facts in C.A. No.2649/2009, arising out of the impugned
     order passed by the NCDRC are that: -
494                                                           [2024] 6 S.C.R.

                        Digital Supreme Court Reports


       (i)    The appellant is an Advocate by profession. The respondent
              Mr. D.K. Gandhi had hired the services of the appellant as an
              advocate for filing a Complaint in the Court of Metropolitan
              Magistrate, Tis Hazari Court, Delhi, against one Kamal Sharma
              under Section 138 of the Negotiable Instruments Act, as the
              cheque for Rs.20,000/- issued by the said Kamal Sharma in
              favour of the respondent D.K. Gandhi was dishonoured.
       (ii)   During the course of the said complaint case, the accused
              Mr. Sharma agreed to pay the sum of Rs.20,000/- for the
              dishonoured cheque besides Rs.5,000/- as the expenses
              incurred by the complainant. It was alleged by the respondent
              (complainant) that though the appellant had received from the
              accused Mr. Sharma the DD/pay order for Rs.20,000/- and
              the crossed cheque of Rs.5,000/- on behalf of the respondent,
              the appellant did not deliver the same to the respondent and
              instead demanded Rs.5,000/- in cash from the respondent.
              The appellant also filed a suit for recovery of Rs.5,000/- in the
              court of Small Causes, Delhi raising a plea that the sum was
              due to him as his fees. Subsequently, the appellant gave the
              DD/pay order for Rs.20,000/- and cheque for Rs.5,000/- to the
              respondent, however, the payment of cheque for Rs.5,000/-
              was stopped by the accused Mr. Sharma at the instance of the
              appellant. The respondent therefore filed a complaint before the
              District Consumer Disputes Redressal Forum, Delhi seeking
              compensation of Rs. 15,000/- in addition to the amount of
              cheque of Rs.5,000/-, as also Rs.10,000/- for the mental agony
              and harassment along with the cost. The appellant resisted
              the said complaint by filing a reply on 03.03.1998 raising a
              preliminary objection to the effect that the District Consumer
              Forum had no jurisdiction to adjudicate the dispute raised in
              the complaint as the Advocates were not covered under the
              provisions contained in the CP Act.
       (iii) The District Forum, however, rejected the said preliminary
             objection, holding that it had the jurisdiction to adjudicate
             upon the dispute between the parties and further decided the
             complaint in favour of the respondent. The appellant being
             aggrieved by the said order had filed an appeal before the State
             Commission, which by the order dated 10.03.2006 allowed the
[2024] 6 S.C.R.                                                            495

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

            same holding that the services of lawyers/advocates did not
            fall within the ambit of “service” defined under section 2(1)(o)
            of the CP Act, 1986. The NCDRC, however in the Revision
            Application preferred by the respondent passed the impugned
            order as stated hereinabove.
     (iv) Being aggrieved by the said impugned order passed by the
          NCDRC, the present set of appeals has been filed by the Bar of
          Indian Lawyers, Delhi High Court Bar Association, Bar Council
          of India, and by the appellant M. Mathias.
     SUBMISSIONS
4.   Since the issues involved in this batch of Appeals pertain to the
     Advocates practising in the various courts/tribunals and other legal
     forums of the country, a wide range of arguments were advanced
     before us. Having regard to the significance and sensitivity of the
     issues involved, we had appointed the learned Senior Advocate, Mr.
     V. Giri as an Amicus Curiae to assist the Court.
5.   The broad submissions made by the learned Senior Counsels Mr.
     Narender Hooda, Mr. Guru Krishna Kumar, Mr. Manoj Swarup, Mr.
     Manan Mishra, Mr. Jaideep Gupta, Mr. Shekhar Naphade, Mr. Vikas
     Singh and learned counsel, Mr. D.K. Sharma may be summarized
     as under: -
     (i)    The Advocates Act, 1961 is a law dealing exclusively with the
            legal profession which provides a robust mechanism laying
            down professional standards for compliance and for determining
            professional misconduct.
     (ii)   The legal profession is a noble profession and not a business
            or trade. It is an extension of system of justice, and the success
            of judicial process depends on the independence of the Bar.
            Hence, its autonomy is needed to preserve the democracy and
            to keep judiciary strong.
     (iii) A unique feature which distinguishes an Advocate from other
           professional is that an Advocate has a duty to the court and
           his peers, in addition to his duty to the client. He is not mere
           a mouthpiece but he has to exercise his own judgment for
           upholding the interest of his client by all fair, legal and reasonable
           means, and by being respectful to the court.
496                                                           [2024] 6 S.C.R.

                       Digital Supreme Court Reports


       (iv) The Bar Council of India and State Bar Councils are invested
            with the disciplinary powers. An error of judgment or mere
            negligence may not be a professional misconduct. In any
            case, the professional misconduct which subsumes cases of
            negligence, which is covered by the special law i.e., Advocates
            Act, 1961.
       (v)   The Advocates Act being special law would prevail over the CP
             Act so far as the conduct of Advocates are concerned.
       (vi) The law of negligence recognizes that a professional would
            be held liable in a civil action for negligence and includes
            professionals of varied fields who possess special skill in that
            profession generally.
       (vii) The legal professionals in United Kingdom can be sued for
             negligence by a way of regular civil action, however they would
             not be liable under the law dealing with consumer rights for
             trade/commercial activities.
       (viii) Allowing consumer protection law to apply to the Advocates
              would open floodgates of unnecessary litigations and it would
              not be in the larger public interest to do so. It would also lead
              to multiple proceedings before multiple forums, reagitation of
              issues decided by a judicial body including the Supreme Court
              with potentially conflicting decisions.
       (ix) The summary nature of proceeding under the consumer
            protection law with its accent on inexpensive and speedy
            remedy (though enacted with laudable objects for protection
            of consumers against trade and commercial activities), can
            become an easy tool for disgruntled litigants to knock at the
            doors of the consumer forums against the advocates. It would
            lead to speculative/vexatious claims, rather than seeking
            relief in respect of bona fide grievances against professional
            misconduct.
       (x)   The legal profession is recognized as sui generis and stands
             out among other profession due to its distinctive nature, where
             the lawyers often find themselves operating in an environment
             where control is elusive. Unlike many other professions where
             practitioners may have a higher degree of control over their
[2024] 6 S.C.R.                                                        497

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

           surroundings, the lawyers frequently navigate through complex
           legal landscapes shaped by diverse factors.
     (xi) One of the primary distinctions of legal profession is the in-
          herent complexity of legal issues. Lawyers must grapple with
          intricate statutes, case laws and regulatory frameworks, which
          often lack definitive answers. Legal disputes frequently involve
          multiple parties with conflicting interests, further complicating
          the matters. Unlike some other professions where problems
          may have more straightforward solutions, the lawyers often
          face ambiguity and uncertainty in their work, making control
          over outcomes elusive.
     (xii) The adversarial dynamics have an element of unpredictability, as
           outcomes depend not only on the lawyer’s skill and knowledge
           but also on the strategies employed by opposing counsel and
           the decisions of judges.
     (xiii) Lawyers are bound by ethical and professional obligations that
            constrain their autonomy and control over their work. Adherence
            to the codes of conduct, client confidentiality, and obligations
            to the court limit the freedom of lawyers to act solely in their
            own interest or according to their preferences.
     (xiv) Unlike any other profession, where professionals are in
           control of their surrounding fully, legal profession is the sole
           profession, where advocates have no control over their en-
           vironment. The environment they work in is controlled by the
           presiding Judge.
     (xv) The Bar Council of India Rules prescribe at least four sets of
          duty that a lawyer has to oblige, viz., Duty to the Court, Duty
          to the Client, Duty to Opponent and Duty to Colleagues, in
          no particular order. These duties are sometimes conflicting in
          nature, however whenever a conflict arises, the duty to court
          is considered to be paramount.
     (xvi) Unlike the medical profession, where scientific standards exist
           to decide the standard of care, there is no universal standard
           of care or objective test that exists or can be prescribed as the
           threshold in the case of legal profession to adjudicate upon the
           question of abdication of duty to care.
498                                                          [2024] 6 S.C.R.

                            Digital Supreme Court Reports


       (xvii) Distinguishing the decision of this Court in Indian Medical
              Association vs. V.P. Shantha & Others1, it was sought to
              be submitted that there is a fundamental difference between
              the practice of law and the practice of medicine, as also the
              difference in the nature of professional-client relationship.
              The complexity of legal issues, and the diversity of legal
              contexts also would take the legal services rendered by
              the Advocates outside the purview of the services defined
              under the CP Act.
6.     The learned Senior Advocate Mr. V. Giri - Amicus Curiae, submitted
       that the Advocates can be broadly classified into two categories
       based on the terms of their engagement and the nature of work
       being done by them for their clients – (1) Advocates engaged by
       clients to conduct their cases and then represent them before any
       court, tribunal or other forum, on the strength of a vakalatnama
       and (2) Advocates engaged by clients to provide their professional
       expertise for providing legal opinions, issuing legal notices, drafting
       agreements, etc. He submitted that the first category of advocates
       would not come within the purview of a service provider under the
       CP Act, as in that case the advocate acts as a representative or
       agent of the client. He further submitted that it is open to a party to
       plead and appear in person in the court, however when he executes
       a vakalatnama, he chooses to engage an Advocate as his agent,
       and the acts and statements of the advocate, in the course of his
       duties in the matter, are like the acts and statements of the principal
       i.e., the client himself. Such relationship cannot be equated to that
       of a “service provider” and a “consumer” as contemplated in the
       CP Act. However, the Amicus Curiae Mr. Giri fairly submitted that
       in the second category of Advocates i.e., the Advocates who are
       engaged by the clients outside the precincts of the court and outside
       the litigation process i.e., who are not engaged on the strength of a
       vakalatnama but engaged to provide legal services outside the court
       process, would come within the purview of a service provider, and
       any deficiency or shortcoming in the professional services rendered
       by such Advocates, completely outside the confines of the litigation
       process, would be covered under the CP Act.


1    [1995] Supp. 5 SCR 110 : (1995) 6 SCC 651
[2024] 6 S.C.R.                                                         499

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

      ANALYSIS
7.    Though the question posed before us is, whether a complaint
      alleging “deficiency in service” against Advocates practising Legal
      Profession, would be maintainable under the Consumer Protection
      Act, having regard to the entire spectrum and scheme of the said
      Act, following further questions stem from the said question, which
      deserve consideration.
      (i)    Whether the Legislature ever intended to include the Professions
             or services rendered by the Professionals within the purview
             of the CP Act 1986 as re-enacted in 2019?
      (ii)   Whether the Legal Profession is sui generis?
      (iii) Whether a Service hired or availed of an Advocate could be
            said to be the service under “a contract of personal service”
            so as to exclude it from the definition of “Service” contained in
            Section 2 (42) of the CP Act 2019?
8.    For adverting to the first question, whether the Legislature ever
      intended to include the Professions or the services rendered by the
      Professionals within the purview of the CP Act 1986 as re-enacted
      in 2019, it would be germane to ascertain the legislative intention
      and to look back to the history, object and purpose of enacting the
      CP Act 1986. A three-Judge Bench in case of State of Karnataka
      vs. Vishwabharathi House Building Coop. Society and Others2,
      while dealing with the issue raised about the constitutional validity
      of the CP Act 1986, had elaborately considered the history, objects
      and purpose of enacting the said Act.
             “5. Before adverting to the question as regard the
             competence of Parliament to enact the said Act, we may
             notice the history of legislation leading to enactment of
             the said Act.
             6. The Secretary General, United Nations submitted draft
             guidelines for consumer protection to the Economic and
             Social Council (UNESCO) in 1983. The General Assembly
             of the United Nations upon extensive discussions and


2    [2003] 1 SCR 397 : (2003) 2 SCC 412
500                                                     [2024] 6 S.C.R.

                  Digital Supreme Court Reports


       negotiations among governments on this scope and content
       thereof adopted the guidelines which inter alia provide for
       the following:
       “Taking into account the interests and needs of consumers
       in all countries, particularly those in developing countries,
       recognizing that consumers often face imbalances in
       economic terms, educational level, and bargaining power,
       and bearing in mind that consumer should have the right
       of access to non-hazardous products, as well as the
       importance of promoting just, equitable and sustainable
       economic and social development, these guidelines for
       consumer protection have the following objectives:
       (a)   To assist countries in achieving or maintaining
             adequate protection for their population as consumers.
       (b)   To facilitate production and distribution patterns
             responsive to the needs and desires of consumers.
       (c)   To encourage high levels of ethical conduct for those
             engaged in the production and distribution of goods
             and services to consumers.
       (d)   To assist countries in curbing abusive business
             practices by all enterprises at the national
             and international levels which adversely affect
             consumers.
       (e)   To facilitate the development of independent
             consumer groups.
       (f)   To further international cooperation in the field of
             consumer protection.
       (g)   To encourage the development of market conditions
             which provide consumers with greater choice at
             lower prices.”
       7. The framework for the Consumer Act was provided by a
       resolution dated 9-4-1985 of the General Assembly of the
       United Nations Organisation. This is known as “Consumer
       Protection Resolution No. 39/248”. India is a signatory to
       the said Resolution.
[2024] 6 S.C.R.                                                                 501

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

             8. The said Act was enacted having regard to the
             aforementioned Resolution.
             9. It seeks to provide for better protection of the interests
             of consumers and for the said purpose, to make provision
             for the establishment of Consumer Councils and other
             authorities for the settlement of consumer disputes and
             for matters connected therewith, as would appear from the
             Statement of Objects and Reasons of the Act.
             10. It further seeks inter alia to promote and protect the
             rights of consumers such as—
             "(a) The right to be protected against marketing of goods
                  which are hazardous to life and property;
             (b)     the right to be informed about the quality, quantity,
                     potency, purity, standard and price of goods to protect
                     the consumer against unfair trade practices;
             (c)     the right to be assured, wherever possible, access
                     to variety of goods at competitive prices;
             (d)     the right to be heard and to be assured that
                     consumers’ interests will receive due consideration
                     at appropriate forums;
             (e)     the right to seek redressal against unfair trade practice
                     or unscrupulous exploitation of consumers; and
             (f)     right to consumer education.””
9.    The scope and object of the said legislation had also come up for
      consideration before this Court in Common Cause, A Registered
      Society vs. Union of India and Others3 in which it was observed: -
             “2. The object of the legislation, as the Preamble of the
             Act proclaims, is “for better protection of the interests
             of consumers”. During the last few years preceding the
             enactment there was in this country a marked awareness
             among the consumers of goods that they were not getting
             their money’s worth and were being exploited by both


3    [1993] 1 SCR 10 : (1997) 10 SCC 729
502                                                         [2024] 6 S.C.R.

                           Digital Supreme Court Reports


            traders and manufacturers of consumer goods. The need
            for consumer redressal fora was, therefore, increasingly
            felt. Understandably, therefore, legislation was introduced
            and enacted with considerable enthusiasm and fanfare
            as a path-breaking benevolent legislation intended to
            protect the consumer from exploitation by unscrupulous
            manufacturers and traders of consumer goods. A three-tier
            fora comprising the District Forum, the State Commission
            and the National Commission came to be envisaged under
            the Act for redressal of grievances of consumers….”
10. In Lucknow Development Authority vs. M.K. Gupta 4, it was
    observed in paragraph 2 as under: -
            “2. ……To begin with the preamble of the Act, which
            can afford useful assistance to ascertain the legislative
            intention, it was enacted, ‘to provide for the protection of
            the interest of consumers. Use of the word ‘protection’
            furnishes key to the minds of makers of the Act. Various
            definitions and provisions which elaborately attempt to
            achieve this objective have to be construed in this light
            without departing from the settled view that a preamble
            cannot control otherwise plain meaning of a provision. In
            fact the law meets long felt necessity of protecting the
            common man from such wrongs for which the remedy
            under ordinary law for various reasons has become illusory.
            Various legislations and regulations permitting the State
            to intervene and protect interest of the consumers have
            become a haven for unscrupulous ones as the enforcement
            machinery either does not move or it moves ineffectively,
            inefficiently and for reasons which are not necessary to be
            stated. The importance of the Act lies in promoting welfare
            of the society by enabling the consumer to participate
            directly in the market economy. It attempts to remove
            the helplessness of a consumer which he faces against
            powerful business, described as, ‘a network of rackets’
            or a society in which, ‘producers have secured power’
            to ‘rob the rest’ and the might of public bodies which are


4   [1993] Supp. 3 SCR 615 : (1994) 1 SCC 243
[2024] 6 S.C.R.                                                            503

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

            degenerating into storehouses of inaction where papers
            do not move from one desk to another as a matter of duty
            and responsibility but for extraneous consideration leaving
            the common man helpless, bewildered and shocked.…..”
11. Yet in Laxmi Engineering Works vs. P.S.G. Industrial Institute5,
    it was held in paragraph 10 as under: -
            “10. A review of the provisions of the Act discloses that the
            quasi-judicial bodies/authorities/agencies created by the
            Act known as District Forums, State Commissions and the
            National Commission are not courts though invested with
            some of the powers of a civil court. They are quasi-judicial
            tribunals brought into existence to render inexpensive and
            speedy remedies to consumers. It is equally clear that
            these forums/commissions were not supposed to supplant
            but supplement the existing judicial system. The idea was
            to provide an additional forum providing inexpensive and
            speedy resolution of disputes arising between consumers
            and suppliers of goods and services. The forum so
            created is uninhibited by the requirement of court fee
            or the formal procedures of a court. Any consumer can
            go and file a complaint. Complaint need not necessarily
            be filed by the complainant himself; any recognized
            consumers’ association can espouse his cause. Where
            a large number of consumers have a similar complaint,
            one or more can file a complaint on behalf of all. Even
            the Central Government and State Governments can act
            on his/their behalf. The idea was to help the consumers
            get justice and fair treatment in the matter of goods and
            services purchased and availed by them in a market
            dominated by large trading and manufacturing bodies.
            Indeed, the entire Act revolves round the consumer and
            is designed to protect his interest. The Act provides for
            “business-to-consumer” disputes and not for “business-to-
            business” disputes. This scheme of the Act, in our opinion,
            is relevant to and helps in interpreting the words that fall
            for consideration in this appeal.”


5   [1995] 3 SCR 174 : (1995) 3 SCC 583
504                                                       [2024] 6 S.C.R.

                    Digital Supreme Court Reports


12. Thus, considering the intention of the Legislature, the objects and
    reasons of the Act of 1986 it was repeatedly held that the said Act
    was enacted to provide for the better protection of the interests
    of the consumers against their exploitation by the traders and
    manufacturers of the consumer goods, and to help consumers in
    getting justice and fair treatment in the matter of goods and services
    purchased and availed by them in a market dominated by large
    trading and manufacturing bodies.
13. After several years of passing of the CP Act 1986, still many
    shortcomings in the said Act were noticed while administering various
    provisions of the said Act. Hence, the CP Act 1986 was repealed and
    the CP Act, 2019 came to be re-enacted. The statement of objects
    and reasons for re-enacting the said Act of 2019 reads as under:-
          “1. The Consumer Protection Act, 1986 (68 of 1986) was
          enacted to provide for better protection of the interests of
          consumers and for the purpose of making provision for
          establishment of consumer protection councils and other
          authorities for the settlement of consumer disputes, etc.
          Although, the working of the consumer dispute redressal
          agencies has served the purpose to a considerable extent
          under the said Act, the disposal of cases has not been
          fast due to various constraints. Several shortcomings have
          been noticed while administering the various provisions
          of the said Act.
          2. Consumer markets for goods and services have
          undergone drastic transformation since the enactment of
          the Consumer Protection Act in 1986. The modern market
          place contains a plethora of products and services. The
          emergence of global supply chains, rise in international
          trade and the rapid development of e-commerce have led
          to new delivery systems for goods and services and have
          provided new options and opportunities for consumers.
          Equally, this has rendered the consumer vulnerable
          to new forms of unfair trade and unethical business
          practices. Misleading advertisements, tele- marketing,
          multi-level marketing, direct selling and e-commerce pose
          new challenges to consumer protection and will require
[2024] 6 S.C.R.                                                           505

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

             appropriate and swift executive interventions to prevent
             consumer detriment. Therefore, it has become inevitable
             to amend the Act to address the myriad and constantly
             emerging vulnerabilities of the consumers. In view of this,
             it is proposed to repeal and re-enact the Act.”
14. It is trite to say that a reference to statement of objects and reasons
    is permissible for understanding the background, the antecedent
    state of affairs, the surrounding circumstances in relation to the
    statute, and the evil which the statute had sought to remedy.* As
    discernible from the statement of objects and reasons for re-enacting
    the CP Act, 2019, there were certain shortcomings found in the CP
    Act 1986 while administering the said Act, and at the same time,
    due to the emergence of global supply chains, rise in international
    trade and rapid development of e-commerce leading to new systems
    for goods and services, new options and opportunities had become
    available to the consumers. However, new forms of unfair trade
    and unethical business practices also came to be developed, which
    made the consumers more vulnerable. Misleading advertisements,
    telemarketing, multi-level marketing, e-commerce posed new
    challenges, which necessitated the Legislature to re-enact the Act.
15. There was not a whisper in the statement of objects and reasons
    either of the CP Act, 1986 or 2019 to include the Professions or the
    Services provided by the Professionals like Advocates, Doctors etc.
    within the purview of the Act. It is very well accepted proposition
    of the fact that Professionals could not be called Businessmen
    or Traders, nor Clients or Patients be called Consumers. It is
    also required to be borne in mind that the terms ‘business’ or
    ‘trade’ having a commercial aspect involved, could not be used
    interchangeably with the term ‘Profession’ which normally would
    involve some branch of learning or science. Profession as such
    would require knowledge of an advanced type in a given field of
    learning or science, or learning gained by a prolonged course
    of specialized study. As per Black’s Law Dictionary, 11th Edition,
    “Profession” means “a vocation requiring advanced education and
    training; especially one of the three traditional Professions- Law,
    Medicine and the Ministry.” “Professional” means “someone who

* State of West Bengal vs. Subodh Gopal Bose & Others, AIR 1954 SC 92
506                                                                            [2024] 6 S.C.R.

                            Digital Supreme Court Reports


       belongs to a learned profession or whose occupation requires a
       high level of training and proficiency.”
16. According to Rupert M. Jackson and John L. Powell,* the Occupations
    which are regarded as Professions have four characteristics, viz.,
       (i)    the nature of the work which is skilled and specialized and a
              substantial part is mental rather than manual;
       (ii)   commitment to moral principles which go beyond the general
              duty of honesty and a wider duty to community which may
              transcend the duty to a particular client or patient;
       (iii) professional association which regulates admission and seeks
             to uphold the standards of the profession through professional
             codes on matters of conduct and ethics; and
       (iv) high status in the community.
17. As observed in Indian Medical Association (supra) :-
              “22. In the matter of professional liability professions differ
              from other occupations for the reason that professions
              operate in spheres where success cannot be achieved
              in every case and very often success or failure depends
              upon factors beyond the professional man’s control. In
              devising a rational approach to professional liability which
              must provide proper protection to the consumer while
              allowing for the factors mentioned above, the approach
              of the courts is to require that professional men should
              possess a certain minimum degree of competence and
              that they should exercise reasonable care in the discharge
              of their duties. In general, a professional man owes to
              his client a duty in tort as well as in contract to exercise
              reasonable care in giving advice or performing services.”
18. In view of the above, a “Profession” would require advanced education
    and training in some branch of learning or science. The nature of
    work is also skilled and specialised one, substantial part of which
    would be mental rather than manual. Therefore, having regard to
    the nature of work of a professional, which requires high level of
    education, training and proficiency and which involves skilled and
* “Jackson and Powell on Professional Liability” 2nd supplement to the 7th edition
[2024] 6 S.C.R.                                                        507

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     specialized kind of mental work, operating in the specialized spheres,
     where achieving success would depend upon many other factors
     beyond a man’s control, a Professional cannot be treated equally
     or at par with a Businessman or a Trader or a Service provider of
     products or goods as contemplated in the CP Act. Similarly, the
     services rendered by a Businessman or a Trader to the consumers
     with regard to his goods or products cannot be equated with the
     Services provided by a Professional to his clients with regard to
     his specialized branch of profession. The legislative draftsmen are
     presumed to know the law and there is no good reason to assume
     that the legislature intended to include the Professions or the
     Professionals or the services provided by the professionals within
     the ambit of the CP Act. Any interpretation of the Preamble or the
     scheme of the Act for construing ‘Profession’ as ‘Business’ or ‘Trade’;
     or ‘Professional’ as ‘service provider’ would be extending the scope
     of the Act which was not intended, rather would have a counter
     productive effect. We are therefore of the considered opinion that the
     very purpose and object of the CP Act 1986 as re-enacted in 2019
     was to provide protection to the consumers from the unfair trade
     practices and unethical business practices only. There is nothing
     on record to suggest that the Legislature ever intended to include
     the Professions or the Professionals within the purview of the Act.
19. One should also not lose sight of the fact that the other object of the
    Act was to provide to the consumers timely and effective administration
    and settlement of their disputes. If the services provided by all
    the Professionals are also brought within the purview of the Act,
    there would be flood-gate of litigations in the commissions/forums
    established under the Act, particularly because the remedy provided
    under the Act is inexpensive and summary in nature. Consequently,
    the very object of providing timely and effective settlement of
    consumers’ disputes arising out of the unfair trade and unethical
    business practices would be frustrated.
20. We may clarify at this juncture that we do not propose to say that
    the professionals could not be sued or held liable for their alleged
    misconduct or tortious or criminal acts. In the process of overall
    depletion and erosion of ethical values and degradation of the
    professional ethics, the instances of professional misconduct are
    also on the rise. Undoubtedly, no professional either legal, medical
508                                                           [2024] 6 S.C.R.

                           Digital Supreme Court Reports


       or any other professional enjoys any immunity from being sued or
       from being held liable for his professional or otherwise misconduct
       or other misdeeds causing legal, monetary or other injuries to his
       clients or the persons hiring or availing his services. The fact that
       professionals are governed by their respective Councils like Bar
       Councils or Medical Councils also would not absolve them from their
       civil or criminal liability arising out of their professional misconduct
       or negligence. Nonetheless, as discussed hereinabove, we are of
       the opinion that neither the Professions nor the Professionals were
       ever intended to be brought within the purview of the CP Act either
       of 1986 or 2019.
21. Of course, we are conscious of the decision in Indian Medical
    Association vs. V.P. Shantha & Others (supra), in which a three-
    Judge Bench of this Court has held inter alia that the wide amplitude
    of the definition of ‘service’ in the main part of Section 2(1)(o) would
    cover the services rendered by Medical Practitioners within the said
    Section 2(1)(o). However, in our humble opinion, the said decision
    deserves to be revisited having regard to the history, object, purpose
    and the scheme of the CP Act and in view of the opinion expressed
    by us hereinabove to the effect that neither the “Profession” could
    be treated as “business” or “trade” nor the services provided by the
    “Professionals” could be treated at par with the services provided
    by the Businessmen or the Traders, so as to bring them within the
    purview of the CP Act .
22. At this juncture, we may rely upon Order VI Rule 2 of the Supreme
    Court Rules which reads as under: -
            “ORDER VI, Rule 2.-
            Where in the course of the hearing of any cause, appeal
            or other proceeding, the Bench considers that the matter
            should be dealt with by a larger Bench, it shall refer the
            matter to the Chief Justice, who shall thereupon constitute
            such a Bench for the hearing of it.”
23. The said Rule has been interpreted in Triveniben vs. State of
    Gujarat6, in which it has been observed that: -


6   [1989] 1 SCR 509 : (1989) 1 SCC 678
[2024] 6 S.C.R.                                                          509

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

            “35. This is undoubtedly a salutary rule, but it appears to
            have only a limited operation. It apparently governs the
            procedure of a smaller Bench when it disagrees with the
            decision of a larger Bench. If the Bench in the course of
            hearing of any matter considers that the matter should be
            dealt with by a larger Bench, it shall refer the matter to
            the Chief Justice. The Chief Justice shall then constitute
            a larger Bench for disposal of the matter. This exercise
            seems to be unnecessary when a larger Bench considers
            that a decision of a smaller Bench is incorrect unless a
            constitutional question arises”.
24. In view of the above, we are of the opinion that the decision of the
    three-judge bench, in case of Indian Medical Association vs. V.P.
    Shantha (supra) deserves to be revisited and considered by a larger
    bench. We, therefore refer the matter to Hon’ble the Chief Justice
    of India for His Lordship’s consideration.
25. This takes us to the next question. Even if, it is held that the CP Act
    applies to the “Professions” and the “Professionals,” the next question
    that falls for our consideration is whether the Legal Profession is sui
    generis or is different from the other Profession, particularly from the
    Medical Profession because the NCDRC in the impugned order has
    relied upon the decision in case of Indian Medical Association vs.
    V.P. Shantha (supra) for bringing the Advocates within the purview
    of the CP Act.
26. As observed in Byram Pestonji Gariwala vs. Union Bank of India
    and Others7, the Indian legal system is the product of history. It is
    rooted in our soil; nurtured and nourished by our culture, languages
    and traditions; fostered and sharpened by our genius and quest for
    social justice; reinforced by history and heritage. After the attainment
    of independence and the adoption of the Constitution of India,
    judicial administration and the constitution of the law courts remained
    fundamentally unchanged. The concept, structure and organisation of
    courts, the substantive and procedural laws, the adversarial system
    of trial and other proceedings and the function of judges and lawyers
    remained basically unaltered and rooted in the common law traditions


7   [1991] Supp. 1 SCR 187 : (1992) 1 SCC 31
510                                                            [2024] 6 S.C.R.

                          Digital Supreme Court Reports


       in contradistinction to those prevailing in the civil law or other systems
       of law. Resultantly, the role, status and capacity of an advocate to
       represent his client has also remained by and large unaltered.
27. This Court in R. Muthukrishnan vs. Registrar General, High
    Court of Judicature at Madras8, delineating the unique nature of
    the legal profession and of the services rendered by the lawyers,
    observed thus:
            “16. The legal profession cannot be equated with any
            other traditional professions. It is not commercial in nature
            and is a noble one considering the nature of duties to be
            performed and its impact on the society. The independence
            of the Bar and autonomy of the Bar Council has been
            ensured statutorily in order to preserve the very democracy
            itself and to ensure that judiciary remains strong. Where
            the Bar has not performed the duty independently and
            has become a sycophant that ultimately results in the
            denigrating of the judicial system and judiciary itself. There
            cannot be existence of a strong judicial system without
            an independent Bar.
            17. It cannot be gainsaid that lawyers have contributed in
            the struggle for independence of the nation. They have
            helped in the framing of the Constitution of India and
            have helped the courts in evolving jurisprudence by doing
            hard labour and research work. The nobility of the legal
            system is to be ensured at all costs so that the Constitution
            remains vibrant and to expand its interpretation so as to
            meet new challenges.
            18. It is basically the lawyers who bring the cause to the
            Court are supposed to protect the rights of individuals of
            equality and freedom as constitutionally envisaged and
            to ensure the country is governed by the rule of law.
            Considering the significance of the Bar in maintaining the
            rule of law, right to be treated equally and enforcement of
            various other fundamental rights, and to ensure that various



8   [2019] 1 SCR 589 : (2019) 16 SCC 407
[2024] 6 S.C.R.                                                             511

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

           institutions work within their parameters, its independence
           becomes imperative and cannot be compromised. The
           lawyers are supposed to be fearless and independent
           in the protection of rights of litigants. What lawyers are
           supposed to protect, is the legal system and procedure
           of law of deciding the cases.
           19. Role of the Bar in the legal system is significant. The
           Bar is supposed to be the spokesperson for the judiciary
           as Judges do not speak. People listen to the great
           lawyers and people are inspired by their thoughts. They
           are remembered and quoted with reverence. It is the duty
           of the Bar to protect honest Judges and not to ruin their
           reputation and at the same time to ensure that corrupt
           Judges are not spared. However, lawyers cannot go to
           the streets or go on strike except when democracy itself
           is in danger and the entire judicial system is at stake. In
           order to improve the system, they have to take recourse
           to the legally available methods by lodging complaint
           against corrupt Judges to the appropriate administrative
           authorities and not to level such allegation in the public.
           Corruption is intolerable in the judiciary.
           20. The Bar is an integral part of the judicial administration.
           In order to ensure that judiciary remains an effective tool,
           it is absolutely necessary that the Bar and the Bench
           maintain dignity and decorum of each other. The mutual
           reverence is absolutely necessary. The Judges are to be
           respected by the Bar, they have in turn equally to respect
           the Bar, observance of mutual dignity, decorum of both
           is necessary and above all they have to maintain self-
           respect too.
           21. It is the joint responsibility of the Bar and the Bench
           to ensure that equal justice is imparted to all and that
           nobody is deprived of justice due to economic reasons or
           social backwardness. The judgment rendered by a Judge
           is based upon the dint of hard work and quality of the
           arguments that are advanced before him by the lawyers.
           There is no room for arrogance either for a lawyer or for
           a Judge.
512                                                           [2024] 6 S.C.R.

                           Digital Supreme Court Reports


            22. There is a fine balance between the Bar and the
            Bench that has to be maintained as the independence of
            the Judges and judiciary is supreme. The independence
            of the Bar is on equal footing, it cannot be ignored and
            compromised and if lawyers have the fear of the judiciary or
            from elsewhere, that is not conducive to the effectiveness
            of the judiciary itself, that would be self-destructive.”
28. In State of U.P and Others vs. U.P. State Law Officers Association
    and Others9, it was observed thus: -
            “14. Legal profession is essentially a service-oriented
            profession. The ancestor of today›s lawyer was no more
            than a spokesman who rendered his services to the needy
            members of the society by articulating their case before
            the authorities that be. The services were rendered without
            regard to the remuneration received or to be received.
            With the growth of litigation, lawyering became a full-time
            occupation and most of the lawyers came to depend upon
            it as the sole source of livelihood. The nature of the service
            rendered by the lawyers was private till the Government
            and the public bodies started engaging them to conduct
            cases on their behalf.”
29. It is thus well recognized in catena of decisions that the legal
    profession cannot be equated with any other traditional professions.
    It is not commercial in nature but is essentially a service oriented,
    noble profession. It cannot be gainsaid that the role of Advocates
    is indispensable in the Justice Delivery System. An evolution of
    jurisprudence to keep our Constitution vibrant is possible only with the
    positive contribution of the Advocates. The Advocates are expected
    to be fearless and independent for protecting the rights of citizens, for
    upholding the Rule of law and also for protecting the Independence
    of Judiciary. People repose immense faith in the Judiciary, and the
    Bar being an integral part of the Judicial System has been assigned
    a very crucial role for preserving the independence of the Judiciary,
    and in turn the very democratic set up of the Nation. The Advocates



9   [1994] 1 SCR 348 : (1994) 2 SCC 204
[2024] 6 S.C.R.                                                        513

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     are perceived to be the intellectuals amongst the elites and social
     activists amongst the downtrodden. That is the reason they are
     expected to act according to the principles of uberrima fides i.e.,
     the utmost good faith, integrity, fairness and loyalty while handling
     the legal proceedings of his client. Being a responsible officer of the
     court and an important adjunct of the administration of justice, an
     Advocate owes his duty not only to his client but also to the court
     as well as to the opposite side.
30. The legal profession is different from the other professions also for
    the reason that what the Advocates do, affects not only an individual
    but the entire administration of justice, which is the foundation of the
    civilized society. It must be remembered that the legal profession is
    a solemn and serious profession. It has always been held in very
    high esteem because of the stellar role played by the stalwarts
    in the profession to strengthen the judicial system in the country.
    Their services in making the judicial system efficient, effective and
    credible, and in creating a strong and impartial Judiciary, which is
    one of the three pillars of the Democracy, could not be compared
    with the services rendered by other professionals. Therefore,
    having regard to the role, status and duties of the Advocates as
    the professionals, we are of the opinion that the legal profession is
    sui generis i.e unique in nature and cannot be compared with any
    other profession.
31. The next question that falls for our consideration is whether a service
    hired or availed of an Advocate could be said to be the service under
    a “contract of personal service?”
32. At the outset, it may be stated that in the Indian Courts, various
    sobriquets or epithets like pleaders, advocates, lawyers, vakils,
    counsels, attorneys etc. are being used interchangeably to describe
    the Legal Practitioners, may be because various Acts like Legal
    Practitioners Act, 1879, Bombay Pleaders Act, 1920, Indian Bar
    Councils Act, 1926 were in force during pre-independence era.
    However, on the Advocates Act, 1961 having come into force, the
    provisions of the said Acts stood repealed as per Section 50 of the
    Advocates Act. The Advocates Act 1961 was enacted to amend and
    consolidate the law relating to legal practitioners and to provide for
    the constitution of Bar Councils and an All-India Bar.
514                                                          [2024] 6 S.C.R.

                       Digital Supreme Court Reports


33. The Advocates Act defines “Advocate” separately from “Legal
    Practitioner” -
            “2(1)(a) - “advocate” means an advocate entered in any
            roll under the provision of this Act;”
       Section 2(1)(i) defines “legal practitioner’ as under: -
            “2(1)(i) - “Legal Practitioner” means an advocate or vakil
            of any High Court, a pleader, mukhtar or revenue agent;”
34. Advocate is included in the definition of “Legal Practitioner” but legal
    practitioner is not included in the definition of “Advocate.” Advocate
    is one who has been entered in any roll under the provisions of the
    Advocates Act. If we glean over the provisions of the Advocates
    Act, 1961, it appears that the said Act was enacted to amend and
    consolidate the law relating to legal practitioners and to provide for
    the constitution of Bar Councils and an All-India Bar. As per Section
    16 thereof, there are only two classes of Advocates, namely Senior
    Advocates and other Advocates. As per Section 29, there is only
    one class of persons entitled to practice the profession of law,
    namely Advocates, and as per Section 30, every advocate whose
    name is entered in the State roll is entitled as of right to practice in
    all Courts including the Supreme Court and before any Tribunal or
    any other authority or person before whom such advocate is by or
    under any law for the time being in force entitled to practice. The
    disciplinary powers for taking action against the Advocates and
    impose punishment for their misconduct have been conferred upon
    the State Bar Councils and Bar Council of India as the case may be
    under the Chapter V of the Advocates Act. The Bar Council of India
    Rules framed under the Advocates Act lay down the restrictions on the
    Senior Advocates, and also lay down the standards of professional
    conduct and etiquette, which include the duties of the advocate
    to the Court, to the client, to the opponent and to the colleagues.
    Thus, comprehensive provisions are contained in the Advocates
    Act, 1961 and the Bar Council of India Rules framed thereunder,
    to take care of the professional misconduct of the Advocates, and
    prescribing the punishments if they are found guilty of professional
    or other misconduct by the Disciplinary Committees of the State Bar
    Council or the Bar Council of India as the case may be.
[2024] 6 S.C.R.                                                           515

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

35. In the light of the above provisions of the Advocates Act, let us
    consider some of the provisions of the Consumer Protection Act
    1986/2019. The definition of “Service” contained in Section 2(1)(o)
    of the CP Act 1986 and in Section 2(42) of the CP Act 2019 is the
    same which reads as under: -
           “Service means service of any description which is made
           available to potential users and includes, but not limited
           to, the provision of facilities in connection with banking,
           financing, insurance, transport, processing, supply of
           electrical or other energy, telecom, 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.”
36. There is slight difference in the definition of ‘Deficiency’ in Section
    2(1)(g) of 1986 Act and Section 2(11) of 2019 Act. The same is
    reproduced as under: -
           Section 2(1)(g) of CP Act, 1986:-
           “Section 2(1) (g) -”Deficiency” means any fault imperfection,
           shortcoming or inadequacy in the quality, nature and
           manner of performance which is required to be maintained
           by or under any law for the time being in force or has been
           undertaken to be performed by a person in pursuance of
           a contract or otherwise in relation to any service.”
           Section 2(11) of CP Act, 2019:-
           Section 2(11) - “Deficiency “ means any fault, imperfection,
           shortcoming or inadequacy in the quality, nature and
           manner of performance which is required to be maintained
           by or under any law for the time being in force or has been
           undertaken to be performed by a person in pursuance
           of a contract or otherwise in relation to any service and
           includes-
           (i)   any act of negligence or omission or commission
                 by such person which causes loss or injury to the
                 consumer; and
516                                                            [2024] 6 S.C.R.

                           Digital Supreme Court Reports


             (ii)   deliberate withholding of relevant information by such
                    person to the consumer”
37. As can be seen, the definition of ‘service’ is divided into three parts
    – the first part is explanatory in nature and defines service to mean
    service of any description which is made available to the potential
    users; the second part is inclusionary part, which expressly includes
    the provision of facilities in connection with the specific services;
    and the third part is exclusionary part which excludes rendering of
    any service free of charge or under a contract of personal service.
    Therefore, let us consider whether the service rendered by the
    Advocates practising Legal Profession could be said to be the Service
    under “a contract of personal service,” so as to exclude it from the
    definition of “Service” contemplated under the Act.
38. The question as to whether a given relationship should be classified
    as a contract ‘for services’ as opposed to a contract ‘of service’
    [i.e. contract ‘of personal service’] is a vexed question of law and
    is incapable of being answered with exactitude without reference to
    the underlying facts in any given case. This Court in Dharangadhra
    Chemical Works Ltd. vs. State of Saurashtra and Others10,
    recognized this position of law and held that “the correct method of
    approach, therefore, would be to consider whether having regard
    to the nature of the work there was due control and supervision by
    the employer”. In the words of Fletcher Moulton, L.J. at P.549 in
    Simmons v. Heath Laundry Company [(1924) 1 KB 762] which were
    cited with approval in Dharangadhra Chemcial Works Ltd. (supra):
             “In my opinion it is impossible to lay down any rule of law
             distinguishing the one from the other. It is a question of
             fact to be decided by all the circumstances of the case.
             The greater the amount of direct control exercised over the
             person rendering the services by the person contracting
             for them the stronger the grounds for holding it to be a
             contract of service, and similarly the greater the degree of
             independence of such control the greater the probability
             that the services rendered are of the nature of professional
             services and that the contract is not one of service.”


10   [1957] 1 SCR 152 : AIR 1957 SC 264
[2024] 6 S.C.R.                                                         517

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

39. What is sought to be opined in the above cases is that the greater
    the amount of direct control exercised over the person rendering
    the services by the person contracting for them, the stronger would
    be the grounds for holding it to be a “contract of service.” Hence,
    let us see whether in case of Advocate-Client relationship, the
    client exercises direct control over the Advocate who is rendering
    his legal professional services to him. At this stage, it would be
    beneficial to refer to some of the important provisions of Code of
    Civil Procedure, which pertain to the representation of party-litigant
    through Advocates. Order III of CPC pertains to the Recognized
    Agents and Pleaders. As per the definition of “Pleader” contained
    in Section 2 (15) CPC, ‘Pleader means any person entitled to
    appear and plead for another in Court and includes an Advocate,
    a Vakil and an Attorney of a High Court. Rule1 of Order III states
    that any appearance, application or act in or in any Court may
    be made or done by the party in person, or by his recognized
    agent or by a pleader appearing, applying or acting, as the case
    may be on his behalf. Rule 4 of the said Order III states that no
    pleader shall act for any person in any Court, unless he has been
    appointed for the purpose by such person by document in writing
    signed by such person or by his recognized agent or by some other
    person duly authorized by or under a power of attorney to make
    such appointment. It further provides that every such appointment
    shall be filed in Court and shall for the purposes of sub-rule (1) be
    deemed to be in force until determined with the leave of the Court
    by writing signed by the client or the pleader as the case may be
    and filed in the Court, or until the client or the pleader dies, or until
    all proceedings in the suit are ended so far as regards the client.
    Such document regarding appointment of a pleader is known in
    common parlance as “Vakalatnama”, the proforma of which has
    been appended in Form No.19 of the ‘Appendix H’ to CPC. The
    said form is reproduced here under: -
                                     “No.19
                                VAKALATNAMA
           In the Court ……..Suit/Miscellaneous case/ Civil Appeal/
           Execution Case No……….. of 19…./20…,fixed for Plaintiff/
           Appellant/ Applicant/ D.H……….. Defendant/ Respondent/
518                                                         [2024] 6 S.C.R.

                     Digital Supreme Court Reports


          Opposite Party/ J.D. Vakalatnama of Plaintiff/ Appellant
          Applicant/ D.H./ Defendant/ Respondent/ Opposite Party/
          J.D.
          In the case noted above Sri…………, each of Sarvasri……….
          Advocate, is hereby appointed as counsel, to appeals,
          plead and act on behalf of the undersigned, in any manner,
          he thinks it proper, either himself or through any other
          Advocate, and in particular to do the following, namely, -
          To receive any process of Court (including any notice from
          any appellate or revisional Court), to file any applications,
          petitions or pleadings, to file, produce or receive back any
          documents, to withdraw or compromise the proceedings,
          to refer to any matter to arbitration, to deposit or withdraw
          any moneys, to execute any decree or order, to certify
          payment, and receive any money due under such decree
          or order.
          The undersigned should be bound by all whatsoever may
          be done in the aforesaid case (including any appeal or
          revision therefrom) for and on behalf of the undersigned
          by any of the said counsel.
          Signature………                             Attesting Witness:
          Name in full ……….                    Name in full………….
          Date ………….                             Address……………
                                                        Date………….
          Accepted/ Accepted on the strength of the signature of
          the attesting witnesses.”
40. A conjoint reading of the provisions contained in Order III CPC and
    Chapter IV of Advocates Act pertaining to right to practise, there
    remains no shadow of doubt that an advocate whose name has
    been entered in the State roll is entitled as of right to practise in all
    Courts, however he can act for any person in any Court only when
    he is appointed by such person by executing the document called
    “Vakalatnama.” Such Advocate has certain authorities by virtue of
    such “Vakalatnama” but at the same time has certain duties too,
    i.e. the duties to the courts, to the client, to the opponent and to
[2024] 6 S.C.R.                                                                 519

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

      the colleagues as enumerated in the Bar Council of India Rules. In
      this regard, this Court in Himalayan Cooperative Group Housing
      Society vs. Balwan Singh and Others11 has made very apt
      observations, which are reproduced hereunder-
             22. Apart from the above, in our view lawyers are perceived
             to be their clientʼs agents. The law of agency may not
             strictly apply to the client-lawyerʼs relationship as lawyers
             or agents, lawyers have certain authority and certain
             duties. Because lawyers are also fiduciaries, their duties
             will sometimes be more demanding than those imposed
             on other agents. The authority-agency status affords the
             lawyers to act for the client on the subject-matter of the
             retainer. One of the most basic principles of the lawyer-
             client relationship is that lawyers owe fiduciary duties to
             their clients. As part of those duties, lawyers assume all
             the traditional duties that agents owe to their principals
             and, thus, have to respect the clientʼs autonomy to make
             decisions at a minimum, as to the objectives of the
             representation. Thus, according to generally accepted
             notions of professional responsibility, lawyers should follow
             the clientʼs instructions rather than substitute their judgment
             for that of the client. The law is now well settled that a lawyer
             must be specifically authorised to settle and compromise
             a claim, that merely on the basis of his employment he
             has no implied or ostensible authority to bind his client
             to a compromise/settlement. To put it alternatively that a
             lawyer by virtue of retention, has the authority to choose
             the means for achieving the client’s legal goal, while the
             client has the right to decide on what the goal will be. If the
             decision in question falls within those that clearly belong
             to the client, the lawyer’s conduct in failing to consult the
             client or in making the decision for the client, is more likely
             to constitute ineffective assistance of counsel.
             23. The Bar Council of India Rules, 1975 (for short “the BCI
             Rules”), in Part VI Chapter II provide for the “Standards



11   [2015] 4 SCR 616 : (2015) 7 SCC 373
520                                                      [2024] 6 S.C.R.

                 Digital Supreme Court Reports


       of Professional Conduct and Etiquette” to be observed
       by all the advocates under the Advocates Act, 1961 (for
       short “the 1961 Act”). In the Preamble to Chapter II, the
       BCI Rules provide as follows:
            “An advocate shall, at all times, comport himself
            in a manner befitting his status as an officer of
            the Court, a privileged member of the community,
            and a gentleman, bearing in mind that what may
            be lawful and moral for a person who is not a
            member of the Bar, or for a member of the Bar
            in his non-professional capacity may still be
            improper for an advocate. Without prejudice to
            the generality of the foregoing obligation, an
            advocate shall fearlessly uphold the interests of
            his client and in his conduct conform to the rules
            hereinafter mentioned both in letter and in spirit.
            The rules hereinafter mentioned contain canons
            of conduct and etiquette adopted as general
            guides; yet the specific mention thereof shall
            not be construed as a denial of the existence of
            others equally imperative though not specifically
            mentioned.”
       24. The Preamble makes it imperative that an advocate
       has to conduct himself and his duties in an extremely
       responsible manner. They must bear in mind that what
       may be appropriate and lawful for a person who is not a
       member of the Bar, or for a member of the Bar in his non-
       professional capacity, may be improper for an advocate
       in his professional capacity.
       25. Section II of the said Chapter II provides for duties
       of an advocate towards his client. Rules 15 and 19 of
       the BCI Rules, have relevance to the subject-matter and
       therefore, they are extracted below:
            “15. It shall be the duty of an advocate fearlessly
            to uphold the interests of his client by all fair
            and honourable means without regard to any
            unpleasant consequences to himself or any
[2024] 6 S.C.R.                                                       521

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

                other. He shall defend a person accused of a
                crime regardless of his personal opinion as to
                the guilt of the accused, bearing in mind that
                his loyalty is to the law which requires that no
                man should be convicted without adequate
                evidence.
                *****
                19. An advocate shall not act on the instructions
                of any person other than his client or his
                authorised agent.”
           26. While Rule 15 mandates that the advocate must
           uphold the interest of his clients by fair and honourable
           means without regard to any unpleasant consequences
           to himself or any other. Rule 19 prescribes that an
           advocate shall only act on the instructions of his client
           or his authorised agent”
41. When we examine the relationship between an Advocate and
    his Client from this point of view, the following unique attributes
    become clear:
     1)    Advocates are generally perceived to be their client’s agents
           and owe fiduciary duties to their clients.
     2)    Advocates are fastened with all the traditional duties that
           agents owe to their principals. For example, Advocates have to
           respect the client’s autonomy to make decisions at a minimum,
           as to the objectives of the representation.
     3)    Advocates are not entitled to make concessions or give any
           undertaking to the Court without express instructions from
           the Client.
     4)    It is the solemn duty of an Advocate not to transgress the
           authority conferred on him by his Client.
     5)    An Advocate is bound to seek appropriate instructions from
           the Client or his authorized agent before taking any action or
           making any statement or concession which may, directly or
           remotely, affect the legal rights of the Client.
522                                                           [2024] 6 S.C.R.

                        Digital Supreme Court Reports


       6)     The Advocate represents the client before the Court and
              conducts proceedings on behalf of the client. He is the only link
              between the court and the client. Therefore, his responsibility
              is onerous. He is expected to follow the instructions of his
              client rather than substitute his judgment.
       Thus, a considerable amount of direct control is exercised by the
       Client over the manner in which an Advocate renders his services
       during the course of his employment. All of these attributes
       strengthen our opinion that the services hired or availed of an
       Advocate would be that of a contract ‘of personal service’ and would
       therefore stand excluded from the definition of “service” contained
       in the section 2(42) of the CP Act, 2019. As a necessary corollary,
       a complaint alleging “deficiency in service” against Advocates
       practising Legal Profession would not be maintainable under the
       CP Act, 2019.
42. In that view of the matter, we summarize our conclusions as under-
       (i)    The very purpose and object of the CP Act 1986 as re-enacted
              in 2019 was to provide protection to the consumers from unfair
              trade practices and unethical business practices, and the
              Legislature never intended to include either the Professions or
              the services rendered by the Professionals within the purview
              of the said Act of 1986/2019.
       (ii)   The Legal Profession is sui generis i.e. unique in nature and
              cannot be compared with any other Profession.
       (iii) A service hired or availed of an Advocate is a service under “a
             contract of personal service,” and therefore would fall within
             the exclusionary part of the definition of “Service” contained
             in Section 2 (42) of the CP Act 2019.
       (iv) A complaint alleging “deficiency in service” against Advocates
            practising Legal Profession would not be maintainable under
            the CP Act, 2019.
43. The impugned judgment passed by the NCDRC is set aside. The
    Appeals stand allowed accordingly.
44. Before parting, we appreciate and place on record the valuable
    assistance and services rendered by the learned Senior Advocate
    Mr. V. Giri appointed as an Amicus Curiae in these matters.
[2024] 6 S.C.R.                                                       523

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

     Pankaj Mithal, J.
1.   The moot question which emanates from the proceedings at hand,
     if put in a different way, is whether the legal services of the lawyer
     availed of by the client would be covered under the Consumer
     Protection Act, 1986 (now Consumer Protection Act, 2019).
2.   It is well recognized that the profession of law is a noble profession
     having an element of duty towards the court. Lawyers perform
     multi-faceted duties. They not only have a duty towards the client
     or their opponents but they have a paramount duty to assist the
     court as well. In a way, they are officers as well as ambassadors
     of the court. Thus, in rendering such kind of a duty to enable
     the courts to come to a just conclusion, it may be possible that
     at times, the lawyers may earn displeasure of the client while
     assisting the court.
3.   The profession of law, as such, is regarded as sui generis i.e. which
     is unique. It is distinct from all other professions and is one of its
     own kind.
4.   It is in the above context that we have to examine if the legislature
     in enacting the Consumer Protection Act intended to include the
     services rendered by professionals, particularly by lawyers to their
     clients, within the ambit of the Consumer Protection Act.
5.   The laws intended to protect consumers, as opposed to traders are
     comparatively of recent origin.
6.   The General Assembly of United Nations upon extensive discussions
     with Governments of various nations submitted draft guidelines for
     consumer protection to the United Nations Economic and Social
     Council (UNESCO) in the year 1983 inter alia providing for the
     following:
     a)    To assist countries in achieving or maintaining adequate
           protection for their population as consumers;
     b)    To facilitate production and distribution patterns responsive to
           the needs and desires of the consumers;
     c)    To encourage high levels of ethical conduct for those engaged
           in the production and distribution of goods and services to
           consumers;
524                                                            [2024] 6 S.C.R.

                            Digital Supreme Court Reports


       d)    To assist countries in curbing abusive business practices by
             all enterprises at the national and international levels which
             adversely affect consumers;
       e)    To facilitate the development of independent consumer groups;
       f)    To further international cooperation in the field of consumer
             protection;
       g)    To encourage the development of market conditions which
             provide consumers with greater choice at lower prices;
7.     A bare reading of the above guidelines reveals that the same have been
       formulated taking into account the interests and needs of consumers
       in various countries, particularly developing countries, in order to level
       out economic imbalances between consumers and service providers.
8.     The General Assembly of the United Nations Organization by Resolution
       No. 39/248 dated 9.4.1985 provided a framework known as Consumer
       Protection Resolution to which our country is also a signatory.
9.     It is on the basis of the above Consumer Protection Resolution of the
       UNO that the Consumer Protection Act, 1986 in India was enacted
       with the objective to save the consumers from unfair conduct and
       practices of traders.
10. In Om Prakash vs. Assistant Engineer, Haryana Agro Industries
    Corporation Ltd. and Anr.1 a three Judge Bench vide paragraph
    7 described the Objects and Reasons for the enactment of the
    Consumer Protection Act as under:
             “7. From the Statement of Objects and Reasons of the
             Act, it appears that the purpose of the Act is to protect the
             interest of the consumer and to provide ‘the right, to seek
             redressal against unfair trade practices or unscrupulous
             exploitation of consumers’…”
11. Recently, in Laureate Buildwell (P) Ltd. vs. Charanjeet Singh,2 a
    three Judge Bench of this Court, highlighting the objectives of the
    Consumer Protection Act held as follows:


1    [1994] 3 SCR 463 : (1994) 3 SCC 504
2    [2021] 6 SCR 673 : (2021) 20 SCC 401
[2024] 6 S.C.R.                                                            525

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

           “26. If one also considers the broad objective of the
           Consumer Protection Act, which is to provide for better
           protection of the interests of consumers and for that
           purpose, provide for the establishment of Consumer
           Councils and other authorities for the settlement of
           consumer disputes and for matters connected therewith,
           as evident from the Statement of Objects and Reasons of
           the Act. The Statement further seeks inter alia to promote
           and protect the rights of consumers such as—
           “2. … (a) the right to be protected against marketing of
           goods which are hazardous to life and property;
           (b) the right to be informed about the quality, quantity,
           potency, purity, standard and price of goods to protect the
           consumer against unfair trade practices;
           (c) the right to be assured, wherever possible, access to
           variety of goods at competitive prices;
           (d) the right to be heard and to be assured that consumers’
           interests will receive due consideration at appropriate
           forums;
           (e) the right to seek redressal against unfair trade practices
           or unscrupulous exploitation of consumers; and
           (f) right to consumer education.”
12. The idea behind the Consumer Protection Act from 1986 till today
    has been to help the consumers get justice and fair treatment in
    matters of goods and services purchased and availed of by them
    in a market dominated by large trading and manufacturing bodies.
    The entire Act revolves around the consumer and is designed to
    protect their interests.
13. Leaving aside India for the time being, if we consider the
    international practice with regard to the inclusion of lawyer-client
    relationships within the ambit of consumer protection laws, we
    would notice that the practice of common law countries evidences
    the exclusion of lawyers from the umbrella of consumer protection
    laws. It must be kept in mind that the consumer protection laws
    of almost all countries are based upon the same resolution of
526                                                         [2024] 6 S.C.R.

                     Digital Supreme Court Reports


       the UNO which forms the foundation for framing the Consumer
       Protection Act in India.
14. To illustrate, Consumer Protection Act, 1999 enacted by the Parliament
    of Malaysia vide Section 2 (2)(e) specifically provides that the said act
    shall not apply, inter alia, to services provided by professionals who
    are regulated by any law. It may be worth noting that the services of
    the professionals such as lawyers in Malaysia are governed by Legal
    Profession Act, 1976. Therefore, by virtue of the above Section 2
    (2) (e), the services provided by the professionals such as lawyers
    stand excluded from the application of the Consumer Protection Act
    of Malaysia.
15. This legislative intent of excluding regulated professions from the
    ambit of Consumer Protection Law has been continuing for over
    a considerable period of time now. Aspects of such exclusion find
    mention in the DIRECTIVE 2011/83/EU OF THE EUROPEAN
    PARLIAMENT AND OF THE COUNCIL OF 25 OCTOBER 2011 on
    consumer rights where it has been said that provisions of the said
    directive should not apply to regulated professions.
16. At the heart of this legislative intent to exempt such ‘regulated
    professions’ from the scope of consumer laws lies the fact that such
    professions are sui generis and paramount as services of general
    interest.
17. The recent DIRECTIVE (EU) 2018/958 OF THE EUROPEAN
    PARLIAMENT AND OF THE COUNCIL of 28 June 2018 bears a
    befitting testimony to this continuing intent of lawmakers and the desire
    to safeguard regulated professions from any outside interreference.
18. Similarly, Section 188 of the Consumer Protection Act (Québec)
    provides that:
           “For the purpose of this division, every person offering
           or providing any of the services referred to in section
           189 [covering contracts of service] is considered to be a
           merchant, except: … (i) persons who are members of a
           professional order governed by the Professional Code
           (chapter C-26).”
                                                 (emphasis supplied)
[2024] 6 S.C.R.                                                           527

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

19. In a similar vein, States in the USA also exempt legal professionals
    from consumer laws.
20. Illustratively, the Code of Maryland, Title 13, dealing with minimum
    standards of consumer protection in Maryland, in Subtitle 1 § 13-104
    explicitly states that:
            “this title does not apply to: (1) The professional services
            of a certified public accountant, architect, clergyman,
            professional engineer, lawyer….”
                                                  (emphasis supplied)
21. The Code of the District of Columbia, while highlighting the powers
    of the consumer protection agency in Title 28 Chapter 39 § 28–3903
    states in clause (c) that:
            “(c) The Department may not: … (2) apply the provisions
            of section §28-3905 [Consumer Protection Complaints]
            to: … (C) professional services of clergymen, lawyers,
            and Christian Science practitioners engaging in their
            respective professional endeavors”;
                                                  (emphasis supplied)
22. The Australian High Court, the highest court of the land in Australia,
    in D’Orta-Ekenaike vs. Victoria Legal Aid3 has emphatically echoed
    the need for such exemption and its direct bearing on the justice
    delivery system. The reasoning of its majority is instructive and
    deserves to be quoted in full:
            “84. To remove the advocate’s immunity would make a
            significant inroad upon what we have earlier described
            as a fundamental and pervading tenet of the judicial
            system. That inroad should not be created. There
            may be those who will seek to characterize the result at
            which the Court arrives in this matter as a case of lawyers
            looking after their own, whether because of personal
            inclination and sympathy, or for other base motives. But
            the legal principle which underpins the Court’s conclusion


3   (2005) 223 CLR 1
528                                                          [2024] 6 S.C.R.

                      Digital Supreme Court Reports


           is fundamental. Of course, there is always a risk that the
           determination of a legal controversy is imperfect. And it
           may be imperfect because of what a party’s advocate
           does or does not do. The law aims at providing the best
           and safest system of determination that is compatible
           with human fallibility. But underpinning the system is the
           need for certainty and finality of decision. The immunity
           of advocates is a necessary consequence of that need”.
                                                  (emphasis supplied)
23. It would be trite to mention here that the legal profession is a
    regulated profession in India. The Advocates Act, 1961 regulates the
    conduct of lawyers in India and is a complete code in itself. Given
    the regulation, India also needs to bring the working of its regulated
    professions in alignment with international practices.
24. In the era of globalization, though I am conscious that a law has
    to be applied in context with the prevailing situation of the country,
    nonetheless, to have a uniform application of any law particularly
    the one which has been framed on the basis of the common
    resolution of the UNO, laws must have a uniform application in all
    nations. It is, therefore, essential that the consumer protection laws
    in all countries may somewhat have universal application and be
    confined to ‘consumers’ only i.e. to the persons who buys any goods
    for consideration or hires or avails of any service for consideration,
    impliedly excluding the professional services especially that of a
    lawyer whose profession is sui generis.
25. In doing so, in India also the services of professionals more particularly
    that of lawyers have to be excluded from consumer protection law
    in accordance with the intention expressed in enacting the same.
26. With the above additional reasoning supplementing the various
    other grounds for excluding the services of the professionals from
    the Consumer Protection Act, I am in agreement with the opinion
    expressed by my esteemed sister and I am of the view that the
    legislature in India as in some other countries, had not intended to
    include the services rendered by the professionals especially the
    lawyers to their client within the purview of Consumer Protection
    Act, 1986 and re-enacted in 2019.
[2024] 6 S.C.R.                                                     529

   Bar of Indian Lawyers Through its President Jasbir Singh Malik v.
D. K. Gandhi PS National Institute of Communicable Diseases and Anr.

27. Accordingly, the view taken by the NCDRC to the effect that in
    respect of deficiency in service rendered by the lawyers, a complaint
    in Consumer Protection Act, 1986 would be maintainable, is incorrect
    and stands overruled.
28. The impugned order of the National Consumer Disputes Redressal
    Commission dated 06.08.2007 is hereby set aside.
29. The appeals stand disposed of accordingly.

     Result of the case: In the judgment of Bela M. Trivedi, J.:
                          Appeals allowed.

     				In the judgment of Pankaj Mithal, J.:
          Appeals disposed of.



     †
      Headnotes prepared by: Nidhi Jain


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Consumer Protection Act"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.

BAR OF INDIAN LAWYERS THROUGH ITS PRESIDENT JASBIR SINGH MALIK versus D. K. GANDHI PS NATIONAL INSTITUTE OF COMMUNICABLE DISEASES AND ANR. — 2024 INSC 410 - Legal Desk AI