SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

RAJASTHAN STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAIPUR
Honble Mr. Justice N.C. Sharma, President; Mr. Subhash Purohit &
Mrs. Firoza Bano, Members
SIPANI AUTOMOBILES LTD. & ANR.—Appellants
versus
SUSHEELA GUPTA & ORS.—Respondents
Appeal Nos. 1324 & 36 of 1994; Revision No. 151, 160, 167, 169,
1149 of 1995 & 3, 13, 15, 47 of 1996—Decided on 14.5.1996

Headnote:Consumer Protection Act, 1986 - Sections 15, 27 and 2(1)(g) - Deficiency in Service - Complainant booked car -Deposited Rs. 10,000/as booking advance - Cancelled booking - Amount not refunded Complaint - District Forum allowed complaint - Opposite parties did not refund amount - Complainants filed application under section 27 - District Forum dismissed applications - Dropped proceedings - Revision Manufacturer of automobile when it accepts booking for delivery of car to potential users it is rendering service , - Deficiency in service if booking advance amount not returned despite cancellation of booking order - Complainants did not appear - Matter

       not argued thread bare - Revisions allowed - Order of District Forum dropping proceedings under section 27 set aside - Matter Remanded.

       Held: It would appear from the review of above decisions that the general consensus of decisions of various State Commissions in India and the trend of decision of the Supreme Court and also that of the National Commission is that where booking amount of a car is not returned despite the cancellation of the booking by the complainant and request by him for refund of the booking amount, there was deficiency in service. The manufacturer of an automobile when it accepts booking for the delivery of the car to the potential users, it is rendering a service. It is deficiency in service if the booking advance amount is not returned despite cancellation of the booking order.

       (Para 14)

       Result: Appeal allowed.

       IMPORTANT POINT

       The non-refund of the advance received for a vehicle was a clear cut case of deficiency.

       

ORDER

Mr. Justice Navin Chandra Sharma, President — All the above mentioned appeals and revisions would be decided by a common order as they involve identical questions of fact and law. In all these matters M/s. Sipani Automobiles is a party and they relate to the refund of the booking amount of the car manufactured by M/s. Sipani Automobiles upon cancellation of the booking order.

2. Appeal No. 1324/94 is against the order of the District Forum, Jaipur dated 10.1.94 whereby the District Forum directed M/s. Sipani Automobiles and M/s. Sobhag Agencies to refund the booking amount of Rs. 10,000/- with respect to the car alongwith interest at 7% p.a. from 17.6.89 to 25.9.92 and thereafter at 13% p.a. and Rs. 500/- as costs. Similarly Revision No. 151/95 is against the order of the District Forum, Udaipur dated 10.8.94 whereby refund of the booking amount of Rs. 10,000/- was allowed in favour of the complainant and against M/s. Sipani Automobiles Ltd. with interest. Revision No. 160/95 has been filed by the complainant against the order of the District Forum, Jaipur 1st whereby the application of the complainant under Section 27 of the Consumer Protection Act, 1986 was dismissed by the District Forum on the ground that in view of the order passed by the State Commission in a case relating to M/s. Sipani Automobiles that in matters of refund of booking amount, the case was not of hiring of service and, therefore, the complainant was not a 'consumer' in the complainant case. The District Forum had allowed the refund of the booking amount to the complainant, but in the application under Section 27 of the Act, in view of the earlier order of the State Commission, the complainant was held not to be a consumer and proceeding under Section 27 of the Consumer Protection Act was dropped. Revision No: 167/ 95 filed by the complainant is against the order of the District Forum, Jaipur dated 28.11.95 which is of the same nature as in Revision No. 160/95 mentioned above. Same is the position with regard to Revision No. 169/95 filed by the complainant N.K. Gehani. Appeal No. 1149/95 has been filed by M/s. Sipani Automobiles Ltd. against the order of the District Forum, Udaipur dated 19.5.95 allowing the complaint filed by the complainant-respondent for refund of the booking amount of Rs 10,000/- of montena car. Revision No. 3/96 has been filed by the complainant against the order of the District Forum, Jaipur dated 28.11.95 dismissing the application of the complainant under Section 27 of the Act on the ground already mentioned above in connection with Revision No. 160/95. Same is the position in Revision Nos. 15/96, Appeal No. 36/96 and Revision No. 47/96 filed by the respective complainants.

3. Complainants in all these cases had booked montena car manufactured by Sipani Automobiles Ltd. and had deposited the booking advance of Rs. 10,000/-. However, subsequently all the complainants cancelled the booking of the car and claimed refund of the booking amount of Rs. 10,000/- from M/s. Sipani Automobiles Ltd. When it was not paid, the complainants filed the complaint in District Forums, Jaipur and Udaipur. All the complaints were allowed by the District Forums. Appeals have been filed by M/s. Sipani Automobiles Ltd. against the orders passed by the District Forum, Udaipur in complaint cases. District Forum, Jaipur had also allowed the complaints. Despite that M/s. Sipani Automobiles Ltd. did not refund the amount. Respective complainants filed applications un der Section 27 of the Consumer Protection Act, 1986 before the District Forum, Jaipur. The District Forum dismissed the applications under Section 27 of the Act following an order of this State Commission in Revision No. 24/94 (Sipani Automobiles Ltd. v. Vibha Bansal) decided on 25.7.95 wherein this State Commission had held that the case of the complainants was not a case of defective goods being sold by the opposite party. It was also not a case of rendering of service. It was a case for refu




















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

SupremeToday

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top