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HARYANA STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, CHANDIGARH
Hon’ble Mr. Justice S.S. Sandhawalia, President;
Smt. Basanti Devi, Member; S. Kulwant Singh, Member
M/s. SUBHASH CHAND ASHOK KUMAR—Appellant
versus
ANIL KUMAR & ANOTHER—Respondents
First Appeal No. 24 of 1992—Decided on 1.4.1992

Advocates:
Counsel for the Parties :
For the Appellant :Mr. L.C. Gupta. Advocate.
1st respondent in person.:None for 2nd Respondent.

The seller of goods to a consumer cannot evade his liability for the defects therein on the ground that the original manufacturer thereof alone is answerable.

Headnote:

CONSUMER PROTECTION ACT - SECTION 2(1)(D)(I), 2(1)(J), 2(1)(Q) - LIABILITY OF SELLER FOR DEFECTIVE GOODS - MANUFACTURER'S LIABILITY DOES NOT EXONERATE SELLER - WARRANTY CARD ISSUED BY MANUFACTURER DOES NOT EXCLUDE SELLER'S LIABILITY.

Fact of the Case:

The complainant purchased a Binatone coloured TV set from the appellants, who were approved dealers of Binatone Electronics Limited. The picture tube of the TV set burnt out due to an inherent defect. The appellants refused to replace the picture tube, claiming that the manufacturer was solely liable. The complainant filed a complaint with the District Forum, which held both the appellants and the manufacturer jointly and severally liable.

Finding of the Court:

The court held that the seller of goods to a consumer cannot evade his liability for the defects therein on the ground that the original manufacturer thereof alone is answerable. The court found that the appellants were the approved dealers and distributors of Binatone Electronics Limited and that the complainant had a direct contractual relationship with them. The court also found that the warranty card issued by the manufacturer did not exclude the seller's liability.

Issues: Whether the seller of goods to a consumer can evade his liability for the defects therein on the ground that the original manufacturer thereof alone is answerable.

Ratio Decidendi: The court held that the seller of goods to a consumer cannot evade his liability for the defects therein on the ground that the original manufacturer thereof alone is answerable. The court found that the appellants were the approved dealers and distributors of Binatone Electronics Limited and that the complainant had a direct contractual relationship with them. The court also found that the warranty card issued by the manufacturer did not exclude the seller's liability.

Final Decision: The court dismissed the appeal and affirmed the order of the District Forum.

ORDER

Mr. Justice S.S. Sandhawalia, President — Whether the seller of goods to a consumer can evade his liability for me defects therein (under the Consumer Protection Act) on the ground that the original manufacturer thereof alone is answerable, therefore is the solitary, significant question in this appeal.

2. The relevant facts lie in a narrow compass. The appellants M/s Subash Chand Ashok Kumar on their own showing are the approved dealers of M/s Binatone Electronics Limited. Shri Anil Kumar, complainant-respondent No. 1 had purchased one Binatone coloured T.V. set from the appellants vide Bill No. 479 dated 23rd of June, 1988. The picture tube thereof carried a guarantee of three years against normal wear and tear. However, about two months prior to the filing of the complaint the said tube suddenly burnt away apparently due to some inherent defect therein. The defect was immediately brought to the notice of the appellants who assured the consumer regarding the replacement of the damaged picture tube on its receipt from their principals M/s Binatone Electronics Limited. Persistent protestations were made by the complainant and it is the appellant’s case that they also, sent reminders to respondent No. 2, but nothing was done to replace the picture tube. Aggrieved thereby the complainant preferred the complaint on the 17th of June, 1991 seeking the replacement of the picture tube and the necessary repairs to the set and also damages to the tune of Rs. 2,000/- against both the opposite parties.

3. In the somewhat cryptic written reply of the appellant to the complaint they did not at all controvert the facts and merely sought to shift their liability on the ground that the warranty was the responsibility of the manufacturer as also the rendering of after sale-service. It was alleged that the service was transferred to the Chandigarh office of M/s Binatone Electronics Limited.

4. M/s Binatone Electronics in their written statement admitted paras Nos. 1 and 2 of the complaint whilst controverter the other primarily on the ground of want of knowledge. However, the basic stand taken on their behalf was that since April 1991 their manufacturing activities had to be closed down due to severe financial difficulties and the company had reported its sickness to the Board for Industrial and Financial Reconstruction (B.I.F.R.) under the provisions of Sick Industrial Companies Special Provisions Act, 1985. Consequently, the said respondent did not defend the proceedings and were apparently proceeded against ex-parte.

5. In support of his case the complainant appeared as PW-1 and proved on the record Exs. P-1 and P-2 being the cash credit memo and the warranty card respectively. The appellants did not choose to cross-examine the complainant or to challenge the documents placed on the record and reiterated their stand that the liability was that of the original manufacturer and their repair service establishment at Chandigarh. As noticed by the District Forum, the solitary stand taken on behalf of the appellants whilst admitting the fact was that the manufacturer alone was liable for the replacement of the picture tube as there was an inherent defect therein.

6. The District Forum on the basis of virtually undisputed facts came to the conclusion that both the appellants and their principals M/s Binatone Electronics Limited were severally and collectively responsible for the default and directed that the damaged tube must be replaced with a new one within 40 days of the order failing which compliance under Section 27 of the Act would be resorted to.

7. The learned Counsel for the appellant somewhat mechanically advocate the identical stand which had been taken on their behalf before the District Forum, without in any way assailing the established fact that the picture tube was inherently defective. It was contended that the sole liability therefore, lay on the shoulders of the manufacturers alone. Reliance was placed on Exhibit P-2, the warrant












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