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Shornur Road Transport, Shoranur - Appellant
Versus
T.V. Sundaram Iyengar & Sons Ltd. - Respondent
Decided On : 08/20/1996
Appeal Nos. 539/96 & 540/96
Advocates Appeared :
K.M.C. Kurup,V.N. Gopala krishnan Nair,U.K. Ramakrishnan,Alex Varghese

Headnote:Consumer Protection Act, 1986 - Sections 15, 17 and 2(1)(d)(ii) - "Consumer" - Complainants placed orders for new chassises with opposite parties in connection with transport business - Remitted entire amount - Delivery not given within stipulated period Complaints filed - District Forum holding that complainants not consumer - Complaints claiming compensation for delay in delivering vehicle not maintainable - Appeals - In both cases purchase of chassises for commercial purpose - Complainants cannot be considered as consumer within the meaning of Section 2(d) of the Act - No dispute can be raised before Consumer Court - Orders of District Forum upheld.

       Held: It is not disputed that in both cases the purchase of chassises is for commercial purpose. Learned Counsel for the appellants vehemently contended that delivery was assured within 3 to 4 weeks from the date of payment. However we see from the proforma that assurance is subject to normal supplies from the manufacturers. It is not the case of the complainants that the chassises were supplied by manufacturers and overlooking the priority of the complainants chassises were supplied to others. Finally learned counsel for the appellants submitted that huge amounts were booked up with the dealers and they were enjoying the benefit of amounts but and that while the complainants have to for long period pay interest at rate of 17% or more for the amounts raised by them from financing agencies for the purpose of paying the cost of the chassises the complainants are not paid any interest. He pointed out that the delivery of chassises was made only on 30-8-1995 and 20-9-1995 that is more than 5 months after payment of full cost. He also argued if chassises intended for the complainants were not supplied by the manufacturers there is no reason for the dealers to collect the full cost over 5 months prior to the delivery. There is substance in these contentions but what we have to consider in these appeals is whether the complainants can be considered to be a consumer within the meaning of Section 2(d) of the Consumer Protection Act in the light of the decisions of the National Commission and Supreme Court referred to above. Our answer to that question is in the negative. If the complainants are not consumers, no dispute can be raised by them before the Consumer Court. It has also to be noticed there is no contract between the parties stipulating payment of interest from the date of payment till the date of delivery.

       (Para 9)

       Result: Appeals dismissed.

       IMPORTANT POINT

       The Apex Court has observed that the legislature having defined the term consumer in broader terms sought to exclude a person who obtains goods for resale or for any commercial purpose.

ORDER

P.K. Shamsuddin, President These appeals raise a common question and therefore they were heard together and disposed of by a common order. The Appeal No.539/96 is filed against the order passed by the District Forum. Thrissur, in O.P. No. 1299/95 and the Appeal No. 540/96 is filed against the order passed by the same District Forum in O.P. No.1298/95. The complainants are the appellants.

2. The allegations contained in the complaint and the averments raised in the version are also similar. The complainant is a registered partnership firm represented by its Managing Partner. The complainant has branches and are having several buses plying on several routes.

The complainant in O.P. No. 1299/95 booked two passenger vehicle chassises with the opposite party as per order dated 25-2-1995 and an advance of Rs. 50,000/ - was also paid as directed by the opposite parties on that day. The complainant alleged that in the order given by the opposite parties it was clearly stated that the delivery of the vehicle would be made within 8 to 10 weeks from the date of the order. Subsequently as directed by the opposite parties the complainant paid the full costs of the two vehicles by two Demand Drafts for Rs. 1,74.200/-. The total amount to be paid for the two vehicles came to Rs. 8.54.200/-. It was also alleged that finance had to be arranged by the complainant from the Kerala Financial Corporation on payment of interest at the rate of 17% per annum. The full cost of the vehicles was paid by the complainant. There was culpable delay gross deficiency in service and breach of obligation on the part of the opposite parties in the matter of delivery of the vehicle. There was also unjust enrichment on' their part. All through the period the amount was lying with the opposite parties without delivering the vehicle to the complainant through the complainant had to pay interest on the amounts arranged and borrowed.

3. In O.P. No. 1298/95 also the complainant is a registered partnership firm and has several buses plying on different routes and the complainant placed orders for new chassises in connection with transport business of the complainant. They also had to raise loan from the Kerala Financial Corporation. Palakkad and the Catholic Syrian Bank Ltd. Shoranur, on payment of interest at 17% per annum. An amount of Rs.25.000/-each was paid for four chassises. The complainant was assured delivery within 8 to 10 weeks from the date of the order. After payment of advance amount of Rs.1,00.000/- on 25-2-1995 the complainant had as per the direction of the opposite parties remitted the entire amount representing the value of four chassises. The total amount including the advance paid on 25-2-1995 came to Rs.16.08,400/-. These payments were made on 18-3-1995 and 27-3-1995. In spite of the assurance and undertaking given by the opposite parties delivery was delayed. One vehicle was delivered on 126-1995 and the second vehicle on 30-61995 and the remaining two vehicles only on 13-7-1995. The complainant who obtained loans from financial institutions was put to serious hardship and difficulty since the amounts were lying locked up without any benefit to the complainant and all through that period the opposite parties were taking undue advantage of the situation and also unjustly enriching themselves. In the circumstances there is gross deficiency in service on the part of the opposite parties in the matter of delivering the vehicles and they have also committed unfair trade practice. The complainants alleged that there was price hike and because of the delay they had to pay the enhanced price. Letters were sent to the opposite parties in this connection but they did not send a reply and finally a notice through a lawyer was sent to which the opposite parties sent a reply requesting that no legal action would be taken within 3 weeks. That period was also over and it is in those circumstances the complaints were filed.

4. The District Forum by short orders h

















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