Deficiency
Also called: Deficiency in service
Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of a service, including negligence and deliberate withholding of relevant information (Section 2(11) CPA 2019).
Explained
Section 2(11) of the Consumer Protection Act, 2019 defines deficiency as 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. It expressly includes (i) any act of negligence or omission or commission by such person which causes loss or injury to the consumer, and (ii) deliberate withholding of relevant information by such person to the consumer. The two inclusions are new compared with the 1986 Act.
Deficiency relates to services, while defect under Section 2(10) relates to goods or products. Service under Section 2(42) is service of any description made available to potential users, including banking, financing, insurance, transport, energy, telecom, boarding or lodging, housing construction, entertainment and news, but excluding services rendered free of charge and services under a contract of personal service. A complaint under Section 2(6)(iii) may allege that services hired or availed of suffer from any deficiency.
The standard against which performance is measured comes from two sources: what the law requires, and what the service provider has undertaken by contract or otherwise. Courts have read service widely. Statutory authorities that allot plots or build houses render service, and delay in giving possession or defective construction is a deficiency. Medical services rendered for payment are service, while treatment free to all patients is outside the Act.
The word also appears with a different sense in Section 12 of the Specific Relief Act, 1963, where it means the part of a contract left unperformed, for which compensation may be awarded on specific performance of the rest. Examiners test the defect and deficiency contrast, the two inclusions, and the free service and personal service exclusions.
What the law says
Section 2, Consumer Protection Act
(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
(ii) deliberate withholding of relevant information by such person to the consumer;
Clause (11) defines deficiency; clauses (10), (42) define defect and service
Section 12, Specific Relief Act
(2) Where a party to a contract is unable to perform the whole of his part of it, but the part which must be left unperformed be a only a small proportion to the whole in value and admits of compensation in money, the court may, at the suit of either party, direct the specific performance of so much of the contract as can be performed, and award compensation in money for the deficiency.
(3) Where a party to a contract is unable to perform the whole of his part of it, and the part which must be left unperformed either—
(a) forms a considerable part of the whole, though admitting of compensation in money; or
Deficiency as the unperformed part of a contract
Example
For example, a courier company that loses a parcel through carelessness, or a builder who delays possession of a flat well beyond the agreed date, is guilty of deficiency in service.
For the exam
- Section 2(11) CPA 2019: fault or shortcoming in performance of a service.
- Includes negligence causing loss or injury and deliberate withholding of relevant information.
- Deficiency is for services; defect (Section 2(10)) is for goods.
- Free services and contracts of personal service are outside service (Section 2(42)).
- Standard comes from law or from what the provider undertook by contract or otherwise.
50 questions in the Law Maker question bank use this term. Practise Consumer Protection Act, 2019 questions
Judgments
- Lucknow Development Authority v. M.K. Gupta (1993)Statutory development authorities that allot plots or build houses render 'service' under the Consumer Protection Act, 1986, even before the 1993 amendment, and consumer fora may award compensation for harassment, to be recovered from the officers responsible.
- Indian Medical Association v. V.P. Shantha (1995)Medical services rendered for payment by doctors and hospitals, including free treatment where others pay, are 'service' under Section 2(1)(o) of the Consumer Protection Act, 1986. Services free to all, and service under a contract of employment, are excluded.
Related terms
- ConsumerUnder Section 2(7) of the Consumer Protection Act, 2019, a person who buys goods or hires or avails of services for consideration, including approved users and beneficiaries, but not for resale or commercial purpose.
- DefectUnder Section 2(10) of the Consumer Protection Act, 2019, any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard of goods required by law, contract or the trader's claim.
- Unfair trade practiceA trade practice that, to promote the sale, use or supply of goods or services, adopts an unfair method or an unfair or deceptive practice, including those listed in Section 2(47) of the Consumer Protection Act, 2019.
- Product liabilityThe responsibility of a product manufacturer or product seller to compensate for harm caused to a consumer by a defective product or by deficiency in services relating to it (Section 2(34), CPA 2019).
- Unfair contractA contract between a manufacturer, trader or service provider and a consumer whose terms cause significant change in the consumer's rights, such as excessive deposits or one sided termination. Section 2(46) of the CPA, 2019.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.