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JAMMU & KASHMIR STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, JAMMU
Honble Mr. Justice Malik Sharief-ud-Din, President &
Kr. Rameshwar Singh, Member
KASHMIR MOTOR CORPORATION—Appellant
versus
M/S. SHAKTI CEMENT DEPOT—Respondent
Appeal No. 325 of 1994 — Decided on 8.12.1995

Advocates:
Counsel for the Parties:
For the Appellant:Mr. O.P. Thakkur, Advocate.
For the Respondent:Mr. R.K. Gupta, Advocate.

A domestic rule of a company which is unreasonable and unconscionable cannot be acted upon by the adjudicatory Forums.

Headnote:

CONSUMER PROTECTION ACT, 1986 - SECTION 2(1)(g) - UNFAIR TRADE PRACTICE - INTEREST ON ADVANCE PAYMENT - INTERPRETATION OF DOMESTIC RULES - UNREASONABLE AND UNCONSCIONABLE RULE - COMPENSATION FOR MENTAL DISTRESS AND INCONVENIENCE.

Fact of the Case:

The complainant booked a Maruti Car with the appellant and deposited a sum of Rs. 1,87,274.92 on 11.10.91. The car was delivered on 7th May, 1992 on payment of an additional amount of Rs. 4,033.94 as the price of the Maruti Car had been increased. The complainant claimed interest at the rate of 12% on the deposited amount from 11.10.91 till 7th of May, 1992 and refund of the enhanced price.

Finding of the Court:

The Divisional Forum held that the complainant was not entitled to refund of the enhanced price as there was no contract between the parties that the vehicle will be delivered by a particular date. The Divisional Forum also held that the appellant was liable to pay interest at the rate of 12% on the deposit made till the date of delivery.

Issues: 1. Whether the complainant was entitled to refund of the enhanced price? 2. Whether the appellant was liable to pay interest at the rate of 12% on the deposit made till the date of delivery?

Ratio Decidendi: 1. The court held that the complainant was not entitled to refund of the enhanced price as there was no contract between the parties that the vehicle will be delivered by a particular date. The court held that the price in vogue at the time of delivery is the price that is to be paid unless there is a specific contract between the parties that the vehicle will be delivered by a particular date and if by that there is no price increase, the consumer would be required to pay that price. 2. The court held that the appellant was liable to pay interest at the rate of 12% on the deposit made till the date of delivery. The court held that the domestic rule of the Maruti Udyog Ltd. which allowed interest at the rate of 12% only from the date of deposit till the date of first intimation less by 7 days was unreasonable and unconscionable.

Final Decision: The court dismissed the appeal and directed the appellant to pay the complainant the interest due on the amount deposited from 11.10.91 to 7.5.92, a compensation of Rs. 1,000/- and costs of the appeal of Rs. 500/-.

ORDER

Mr. Justice Malik Sharief-ud-Din, President — Appeal against the order dated 28.12.93.

2. After hearing the learned Counsel for the parties and after going through the order and through the appeal, we may first notice the facts.

3. On 11.10.91 after booking a Maruti Car with the appellant the respondent deposited a sum of Rs. 1,87,274.92 and the Car was in fact delivered on 7th May, 1992 on payment of an additional amount of Rs. 4,033.94 as the price of the Maruti Car had been by then increased. The grievance of the complainant is that the appellant could not have charged this additional amount and that interest at the rate of 12% on the deposited amount was due to him from 11.10.91 till 7th of May, 1992 when the delivery was made and that instead of adjusting the entire amount of interest due to him only a sum of Rs. 4,033.84 was adjusted. According to the complainant the interest due to him at the stipulated rates has been calculated at Rs. 12,806.52

4. Now only defence in this case is that the complainant despite a telegram to take the delivery failed to take the delivery in time and there- fore the complainant is entitled to interest only at the rate of 12% per annum from the date of booking till the date of intimation of delivery. The fact that the telegram was sent to the respondent by the appellant has been controverted by the respondent. The complaint is mainly based on the documentary evidence though the complainant has also appeared to support his case. The appellant has also examined one V.K. Arora, Sales manager.

5. Now the Divisional Forum on consideration of the respective contentions came to the conclusion that the complainant (respondent) had to pay the enhanced price as there was no contract between the parties that the vehicle will be delivered by a particular date and the contract between the parties clearly reveals that he had to pay the price that was in vogue at the time of delivery. In this state of things, we are of the view that the Divisional Forum has rightly held that the complainant is not entitled to refund of the enhanced price. Otherwise it is well established that the price in vogue at the time of delivery is the price that is to be paid unless there is a specific contract between the parties that the vehicle will be delivered by a particular date and if by that there is no price increase, the consumer would be required to pay that price.

6. Now the Divisional Forum declined to accept the stand of the opposite party that the interest at the rate of 12% will be allowed only from the date of deposit till the date of first intimation less by 7 days. We may note that this stand was taken by the appellant before the DF by reference to domestic rules of the Maruti Udyog Ltd. and the Divisional Forum opined that the rule was not placed before it. This situation continued till date. We also find ourselves in agreement with the observations of the DF that even if such a rule were in existence the same cannot be acted upon for the reason that it is unreasonable. We would like to add that apart from such a rule being unreasonable it is both unilateral and unconsciensnable. No party to a contract can carve out a unilateral rule like this ignoring the interests of the adversary and thereby appropriating all the benefits for itself. It will be noticed that the money paid in advance by the complainant remained with the appellant and it had been invested by it. It is for this reason that the interest is being allowed. If the appellant has earned from the deposits made by the respondents it is highly immoral to retain the same. The least that can be said is that the adjudicatory Forums cannot be a party to such a precedent. Since there is an agreement between the parties the interest at the rate of 12% will be paid on the deposit made till the date of delivery we find nothing wrong with the order passed by the DF and we confirm the same and direct that the interest to the complainant on the amount de- posited





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