TAMIL NADU STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, MADRAS
Hon’ble Thiru Justice S.A. Kader, President;
Thiru. R.N. Manickam & Tmt. Ramani Mathuranayagam, Members
M/s. KALEESWARI INDUSTRIES—Complainant
versus
M/s. MATHER & PLATT (INDIA) LTD.—O.P.
O.P. No. 349 of 1992—Decided on 17.5.1993
Held: The purchase is no doubt for commercial purpose and the Complainant is not therefore a consumer within the meaning of Section 2(1)(d)(i) of the Consumer Protection Act But the Complainant certainly will be a consumer ui1der Section 2(1)(d)(ii) of the Act in respect of services rendered or to be rendered by the Opposite Party for the proper functioning of the Machineries during the period of Warranty. In view of the warranty given by the Opposite Party for the proper working of the machineries for the period of one year, the Opposite Party has to render service for the proper maintenance of the machineries during the period of warranty and the purchaser is a consumer entitled to maintain this complaint for deficiency of service. (para 7)
(ii) Consumer Protection Act, 1986 - Section 2(1)(g) - Deficiency in service - Machines purchased from the opposite party proved to be defective within the period of warranty - Inspite of repeated requests, opposite party failed to rectify them - Instead demanded payment of the balance before attending to the defective machines - Whether there has been any deficiency of service on the part of opposite party? (Yes)
Held: There was gross deficiency of service on the part of the Opposite party in its failure to rectify the mal-functioning of the Back Filling Machine. As already pointed-out, the Opposite party took time during the course of the hearing to rectify of the manufacturing defects but did nothing. We have therefore no hesitation in coming to the conclusion that the Back Filling Machine has failed to function properly from the very inception and the Opposite party has committed deficiency of service in not attending to that immediately and insisting upon the payment and the balance. (Para 8)
(iii) Consumer Protection Act, 1986 - Section, 14(1)(c) - Refund of price - Inspite of repeated request opposite party failed to rectify the machines sold to the complainant Deficiency in service - Whether complainant is entitled to refund of the value of the machines? (Yes)
Held: We are convinced that the Opposite party is not in a mood to attend to the proper working of the Back Filling Machine and there is therefore no purpose in directing it to attend to this machine. The only course available is to direct the Opposite Party to refund of the value of the Back Filling Machine and take back the machine. In Exhibit A-28 the Opposite Party has admitted the 10% value of the Back Filling Machine will be Rs. 75,000/-. It follows, that the total value of the Back Filling Machine is Rs. 7,50,000/-. The Opposite Party is to refund the amount to the Complainant and take back the Back Filling Machine. But out of the total cost of Rs. 21.28,469/-, the Complainant has paid only Rs. 18.75,621.86. There is thus a balance of Rs. 2.52.841.14. The Complainant is liable to pay this amount. After giving credit to this amount the balance payable by the Opposite Party to the Complainant comes to Rs. 4,97,152.86. (para 8)
Result: Complaint allowed.
IMPORTANT POINT
A person who purchased the machines for Commercial purpose is a consumer uls.2(1)(d)(ii) of the Act in respect of the services rendered by the opposite party for the proper functioning of the machines during the period of warranty.
Mr. Justice S.A. Kader, President—This is a complaint under Section 17 read with Section 12 of the Consumer Protection Act.
2. The Opposite Party is manufacturer of Back Filling Machine, Calendering Machine and Damping Machine used for production of Binding Cloth. The Complainant placed an order with the Opposite Party for the supply of these machineries. The Opposite Party accepted the order and guaranteed performance for a period of one year from the date of commencement of the unit. The machineries were supplied on 31.3.199 0and erected on 12.4.1991. Some more parts were supplied on 5.8.1991. The machinery did not function properly even from the very beginning. According to the Complainant the Unit is a composite one and even if any one of the machineries is not working to its full capacity, the production of the finished fabrics will not be possible. On 17.8.1991, the Engineer of the Opposite Party found that there were defects in the machines and required rectification. On 7.9.1991 the Opposite Party promised to take all measures for speedy rectification and asked the Complainant to bear with them. But nothing was done as promised inspite of repeated requests. The Complainant borrowed from the Tamil Nadu Industrial Investment Corporation and as per the terms of the sale, 10% was payable to the Opposite Party only after working of the machine with full capacity for one year. The Complainant has so far paid Rs. 18,75,621.86. The Complainant has also purchased raw-materials for Rs. 4.00 lakhs, land and building costs of Rs. 3,40,000/-. In all, the Complainant invested Rs. 26,15,621.86. He is also paying Rs. 5,000/-per month by way of salary and Rs. 630/- as electric charges. The Complainant is put to loss because of the failure of the Opposite Party to rectify the defects and deficiencies. Notices were issued by the Complainant. He has therefore come forward with the claim for compensation which is restricted to Rs. 9,90,000/-.
3. The Opposite Party in its counter contented that the machineries have been purchased by the Complainant for commercial purpose and the Complainant is not a consumer. The value of the machineries is Rs. 21,28,469/- and beyond the pecuniary jurisdiction of this Commission. On merits, it is admitted that the Opposite Party offered to sell, install/erect the machineries at the Factory of the Complainant in 1987 itself. But due to the failure of the Opposite Party to make payment the delivery was delayed. The Complainant did not strictly adhere to the payment schedule. Even though the Opposite Party has furnished bank guarantee, the Complainant has not paid the lost 10% of the value. By letter dated 10.6.1991, the Complainant agreed that all the machineries are working properly except doctor blade on the Back Filling Unit. When the Complainant reported to the Opposite Party that the coating plant was not functioned properly, the Opposite Party informed the Complainant that necessary steps would be taken to set-right the plant provided the balance was paid. The Opposite Party states that it was already ready and willing to set-right the matter provided payments were made as agreed. It is the Opposite Party who had incurred loss therefore prayed for the dismissal of the Complaint.
4. Exhibits A1 to A38 have been marked. The Opposite Party did not file any document. Proof affidavits have been filed.
5. When the case was taken up for hearing, the Opposite Party wanted time to inspect the machineries and to rectify the manufacturing defects. The case was therefore adjourned from 26.3.1993 to 13.4.1993. But nothing was happened. Hence the hearing of the case was taken up. The Complainant has made an endorsement in the complaint that it was restricting its claim only to the Back Filling Machine valued at Rs. 7,50,000/-. We are therefore concerned only with Back Filling Machine.
6. The points that arise for consideration are (1) whether the complaint is maintainable? (2) whether there has been any deficiency of
1. 1993 (1) CPR 333. (Relied)[Para 6]
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