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PUNJAB STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, CHANDIGARH
Hon’ble Mr. Justice A.L. Bahri, President;
Mr. Jasbir Singh & Mrs. D.K. Bhamrah, Members
EKO ELECTRONICS—Appellant
versus
SH. KULDIP SHARMA & ORS.—Respondents
Appeal No. 801 of 1998—Decided on 11.8.1999

Advocates:
Counsel for the Parties :
For the Appellant :Mr. D.C. Mittal, Advocate.
For the Respondents:Mr. P.N. Arora, Advocate.

A service provider is deficient in service if it refuses to provide the agreed-upon services without payment of unrelated debt.

Headnote:

CONSUMER PROTECTION ACT - SECTION 2(1)(d), 2(1)(g) - SERVICE CONTRACT - REPAIR OF VCR - DEFICIENCY IN SERVICE - COMPENSATION - INTERPRETATION OF GUARANTEE PERIOD - TAMPERING WITH VCR - WITHHOLDING DELIVERY FOR UNRELATED DEBT - QUANTUM OF COMPENSATION.

Fact of the Case:

Complainant purchased a VCR with a one-year guarantee. Within the guarantee period, the VCR developed a defect and was repaired twice by the appellant, an authorized service center, without charge. When the VCR developed a defect for the third time, the appellant refused to repair it without payment, claiming that the guarantee period had expired and that the VCR had been tampered with. The complainant filed a complaint with the District Forum, which directed the appellant to deliver the repaired VCR to the complainant upon payment of Rs. 1,650/- repair charges and to pay compensation of Rs. 7,000/-.

Finding of the Court:

The State Commission held that the appellant was deficient in service by refusing to deliver the repaired VCR to the complainant without payment of unrelated debt and that the complainant was entitled to compensation. However, the Commission reduced the amount of compensation awarded by the District Forum from Rs. 7,000/- to Rs. 3,000/-.

Issues: 1. Whether the appellant was deficient in service by refusing to deliver the repaired VCR to the complainant without payment of unrelated debt? 2. Whether the complainant was entitled to compensation for the appellant's deficiency in service? 3. What was the appropriate amount of compensation?

Ratio Decidendi: 1. The appellant was deficient in service by refusing to deliver the repaired VCR to the complainant without payment of unrelated debt. The appellant's service contract with the complainant required it to repair the VCR without charge during the guarantee period. The appellant's withholding of the VCR until the complainant paid the unrelated debt was a breach of this contract. 2. The complainant was entitled to compensation for the appellant's deficiency in service. The complainant was deprived of the use of the VCR for a year due to the appellant's refusal to deliver it. This caused the complainant harassment and inconvenience. 3. The appropriate amount of compensation was Rs. 3,000/-. The State Commission considered the price of the VCR and the length of time the complainant was deprived of its use in determining the appropriate amount of compensation.

Final Decision: The State Commission's order was partly allowed. The appellant was directed to deliver the repaired VCR to the complainant without charging anything for the repairs and to pay compensation of Rs. 3,000/- along with Rs. 500/- as litigation expenses.

ORDER

Mr. Justice A.L. Bahri, President—This appeal is by Eko Electronics, Patiala, opposite party No. 2 who was directed by District Forum, Patiala vide order dated July 14, 1998 to deliver back after repairs V.C.R. to the complainant Kuldip Sharma on charging Rs. 1,650/-, repair charges, and to pay compensation of Rs. 7,000/- to the complainant, of course, after adjusting the amount of Rs. 1,650/- as referred to above. The appellant is an Authorised Service Centre for the products manufactured by BPL Engineering Limited, Bangalore, opposite party No. 3 and marketed at Patiala through Virk Electronics, Patiala, their dealer. Kuldip Singh, the complainant, purchased a V.C.R. from the dealer. One year guarantee was attached to the sale. Within that period, defect occurred in the V.C.R. which was repaired by the appellant. Second time again defect occurred which was also repaired without charging anything. When third time on April 15, 1996, the defect occurred, the appellant intended to charge for the same. Since V.C.R. was not returned, Kuldip Singh approached District Forum, Patiala with the complaint for return of the V.C.R. and compensation of Rs. 10,000/-. The appellant contested the complaint, inter alia, alleging that there was no contract of rendering service with the complainant, hence, no relief against the appellant could be granted. Third time when the complainant approached, it was beyond the period of guarantee and the appellant was entitled to charge for the repairs Rs. 1,650/-. He was ready to deliver back the V.C.R. on payment of the aforesaid amount as well as amount of instalments of loan taken by the complainant from the sister concern of the appellant which was to the tune of Rs. 12,000/-. Since no appeal has been filed by the said dealer and the manufacturer, it is not necessary to refer to their pleadings except that sale of V.C.R. and existence of guarantee for one year stood admitted. On the evidence produced on affidavits and documents, the impugned order was passed.

2. Mr. B.J. Singh, learned Counsel for the appellant has argued that when third time the V.C.R. was brought for repairs, the period of guarantee had expired, hence, the appellant was to repair the V.C.R. on charging for the same. It is in this context, it is further stated that since the V.C.R. had been tampered with by an unauthorised person, the guarantee was over and the complainant was to make payment of the repair charges. Lastly, it is stated that qua the appellant the complainant could not be a consumer entitled to any relief under the provisions of the Act as the appellant was merely rendering services and that too without charging any fees whereas sale of the V.C.R. was by the other opposite parties, the dealer or the manufacturer.

3. Taking up the last point, first of all it may be observed that there is no merit. It is arrangement between the manufacturer and the dealer that they get electronic appliances repaired from the appellant. Since there is a contract of sale accompanied by guarantee and there is contract of effecting repairs between the dealer or the manufacturer and their authorised service centre, the appellant, the complainant being a beneficiary of the contract is a consumer entitled to file the complaint. It is immaterial between the appellant and the manufacturer as to how much consideration passes between them for taking services of the appellant for affecting repairs to the appliances. As far as complainant is concerned, such consideration for the services stand included in the total price of the appliance purchased and thus the complainant being a consumer, as defined, is entitled to claim relief against the appellant as well.

4. The V.C.R. was purchased on September 8, 1995, as per affidavit of the complainant. This fact that V.C.R. was sold on September 8, 1995 is also mentioned in the documents Ex. C-1, Ex. C-2 as prepared by the appellant at the time of rendering free services of the V.C.R. Thus, when third time







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