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2003 Supreme(AP) 211

Andhra Pradesh High Court
Judges : V.V.S.RAO
Euraka Forbes Limited - Appellant
Versus
Government Of A.P.rep.by its Secretary Food and Civil Supplies department, Hyderabad - Respondent
Decided On : 02-07-03

Headnote:

Constitution Of India - Article 19 - Indian Companies Act 1913 - Rules deals with Units of Weight - Rule 13 - Manufacture and marketing of vacuum cleaners and electrical consumer goods – Transportation - Customer is entitled to remove the product from the card board box - Petitioner is a company incorporated under Indian Companies Act It has its Registered Office at Calcutta and Branch Offices all over country. It is engaged in manufacture and marketing of vacuum cleaners and electrical consumer goods - company represented by its branch Manager at Hyderabad filed petition Writ of mandamus declaring provisions of Standards of Weights and measures Act – Held, contention of respondents that vacuum cleaner falls within definition of combination package as defined in the Rules and therefore covered by provisions of Act and Rules is devoid of any merit - As per Rules combination package means a package intended for retail sale containing two or more individual packages or individual pieces of dissimilar commodities - When a vacuum cleaner is purchased standard accessories form part of unit - They are inseparable parts of vacuum cleaner without which utility of machine will be nil - Vacuum cleaner with its standard accessories is sold as one single unit and it cannot be treated as combination package or group package - petition allowed

V. V. S. RAO, J.

( 1 ) THE petitioner is a company incorporated under the Indian Companies Act, 1913. It has its Registered Office at Calcutta and Branch Offices all over the country. It is engaged in manufacture and marketing of vacuum cleaners and electrical consumer goods. The company represented by its branch Manager at Hyderabad filed the writ petition seeking a Writ of mandamus declaring that the provisions of Standards of Weights and measures Act, 1976 (Central Act No. 60 of 1976) (hereinafter called, the act), and the Standards of Weights and Measures (Packaged Commodities) rules, 1977 (hereinafter called, the Rules) are not applicable to vacuum cleaners manufactured/marketed by the company.

( 2 ) THE circumstances leading to filing of the writ petition may be briefly noticed. The direct sales division of the petitioner deal in vacuum cleaners under trade mark Euroclean 2000". The main unit and the accessories are purchased by the petitioner from various other manufacturers and they are placed in cartons and warehouses. The salesmen visit the prospective customers at their houses to market the product. A demonstration of the product is given to the customers who themselves handle the product so as to test the performance. It is upto the customer to purchase the product with standard accessories and with or without optional accessories. If the customer is satisfied after demonstration the vacuum cleaner is sold by single piece and not by number. The vacuum cleaner being a consumer durable and electrical equipment cannot be sold in packaged form. So as to protect the product during transportation, handling and storage, the product is put in a cardboard box or a carton.

( 3 ) THE outer case box or carton is not a "package" as defined in the Act and the Rules. The package is not sealed and it is not intended to be a sealed package. Customer is entitled to remove the product from the card board box, inspect and handle, and then test the performance before buying the same. Even if the customer decides to purchase vacuum cleaner, it is upto him to take the product along with cardboard box or take the product he tested in the office of the company. In the bill/invoice the main unit price and the price of standard accessories are shown separately from the optional accessories. Therefore, vacuum cleaner delivered in carton or box for protective purpose, is not "commodity in packaged form". They are not sold by weight, measure, or number at all and they are only sold as single piece.

( 4 ) THE fourth respondent, namely, Senior Inspector, Legal Metrology in the department of Weights and Measures, Government of Andhra Pradesh visited the petitioner on 9. 10. 1996 and seized five boxes containing five euroclean vacuum cleaners alleging that the petitioner has contravened the provisions of Section 39 of the Act read with Rules 23 (6) and 23 (7) of the rules. The petitioner received notice on 31. 1. 1997 informing that prosecution would be launched if the offence is not compounded under section 73 of the Act. The petitioner sent a reply explaining that the act and the Rules have no application to vacuum cleaners and requested for personal hearing. The respondents indicated that they are not accepting the stand of the petitioner and informed that charge sheet would be filed in criminal case against the petitioner. The Branch Manager was requested to furnish the names of the Directors of the petitioner-company to prosecute them under the provisions of the Act read with various Rules. Therefore, the writ petition is filed seeking declaration as noticed hereinabove.

( 5 ) THE Deputy Controller (Headquarters), Department of Legal Metrology filed a counter-affidavit on behalf of respondents to the following effect. The fourth respondent seized five packages of vacuum cleaners from the premises of the petitioner on 28. 1. 1997 which were intended to be sold.

( 6 ) THE packages sealed are "packaged commodity" within the meaning of the rules an



















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