Supreme Court Ruling: Advocates’ Services Excluded from Consumer Protection Act – A Landmark Judgment

The Supreme Court of India recently delivered a significant judgment in the case of Bar of Indian Lawyers Through Its President Jasbir Singh Malik v. D.K. Gandhi, PS National Institute of Communicable Diseases & Anr., 2024. The ruling clarifies that legal services provided by advocates do not fall under the Consumer Protection Act, 2019, reinforcing the distinct and self-regulatory nature of the legal profession. This decision is pivotal for the legal fraternity and the broader legal system in India.

Case Citation

• Case Name: Bar of Indian Lawyers Through Its President Jasbir Singh Malik v. D.K. Gandhi, PS National Institute of Communicable Diseases & Anr.
• Year: 2024
• Citation: 2024 SCC OnLine SC 928
• Bench: Justice Bela M. Trivedi and Justice Pankaj Mithal

Facts of the Case

The case arose when D.K. Gandhi engaged an advocate to file a complaint under Section 138 of the Negotiable Instruments Act, 1881, concerning a dishonored cheque of ₹20,000.

• During the proceedings, a settlement was reached, but Gandhi later accused his advocate of failing to remit the settled amount.
• The advocate then filed a recovery suit for ₹5,000, claiming it as his legal fees.
• Gandhi responded by filing a consumer complaint, alleging deficiency in service by the advocate.
• The District Consumer Forum ruled in Gandhi’s favor, holding that the advocate was liable.
• However, the State Commission overturned this decision, holding that legal services did not fall within the Consumer Protection Act.
• The National Consumer Disputes Redressal Commission (NCDRC) reinstated the District Forum’s ruling, stating that legal services were covered under consumer law.
• This led to an appeal before the Supreme Court of India.

Main Provisions Involved

1. Consumer Protection Act, 2019
   • Section 2(42): Defines “service” but excludes services under a contract of personal service.
2. Advocates Act, 1961
   • Governs the legal profession, outlining the roles, responsibilities, and ethical obligations of advocates.

Issues Involved

1. Do legal services provided by advocates fall under the definition of “service” under the Consumer Protection Act, 2019?
2. Can an advocate be held liable for deficiency in service under consumer protection laws?
3. What is the legislative intent behind including (or excluding) professional services under consumer protection laws?

Main Principles Laid Down by the Supreme Court

1. Legal Services Are Not Covered Under Consumer Protection Act
   • The Court held that legal services provided by advocates fall under a contract of personal service, which is explicitly excluded from the scope of the Consumer Protection Act, 2019.
2. The Unique Nature of the Legal Profession
   • The Court emphasized that the legal profession is not a commercial activity but a profession based on trust, ethics, and fiduciary responsibility.
   • Advocates assist in justice delivery and their professional conduct is governed by the Bar Council of India, not consumer laws.
3. Regulatory Mechanisms for Advocates Already Exist
   • The Advocates Act, 1961 and Bar Council of India Rules already provide a mechanism for addressing professional misconduct.
   • Allowing clients to file consumer complaints against advocates would bypass the self-regulatory nature of the legal profession.

Impact of the Judgment

This landmark ruling has significant implications:

• Legal professionals are exempt from consumer disputes: Clients cannot file consumer complaints against advocates for alleged deficiency in service.
• Strengthening the Bar Council’s authority: Complaints related to legal malpractice or professional misconduct must be addressed only through Bar Councils under the Advocates Act, 1961.
• Clarifies the legal profession’s non-commercial status: The judgment reinforces that the legal profession is not a business but a public service.
• Ensures independence of the legal system: Keeping advocates outside the purview of the Consumer Protection Act prevents interference in professional ethics by consumer courts.

Conclusion

The Supreme Court’s ruling in Bar of Indian Lawyers v. D.K. Gandhi provides much-needed clarity on the status of legal services under consumer protection laws. By excluding advocates from consumer complaints, the Court has upheld the dignity and independence of the legal profession while ensuring that regulatory oversight remains within the domain of Bar Councils. This decision reinforces the principle that advocates are not service providers in a commercial sense but professionals who assist in the administration of justice.

Short Summary

In the 2024 case of Bar of Indian Lawyers v. D.K. Gandhi, the Supreme Court of India ruled that legal services provided by advocates do not fall under the Consumer Protection Act, 2019. The Court held that the relationship between an advocate and client is a contract of personal service, making it exempt from consumer disputes. This landmark judgment upholds the unique status of the legal profession, ensuring that complaints against advocates must be addressed under the Advocates Act, 1961 and not consumer courts.