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MAHARASHTRA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, MUMBAI
P.B. JOSHI, NARENDRA KAWDE, JJ.
J.M. Industries – Appellant
Versus
Dhanprakash Industries Corporation and Another – Respondents
Consumer Complaint No. CC/98/399
Decided On : 20-06-2014

Advocates:
Advocate Appeared:
For the Appellant : Mr. Uday Wavikar.
For the Respondent: Mr. Kaulgod

The complainant's status as a consumer under the Consumer Protection Act, 1986, and the determination of deficiency in services rendered by the opponent were the central legal points established in the judgment.

Headnote:

Consumer Complaint - Delay in Delivery of Goods - Consumer Protection Act, 1986, Section 2(i)(d) - The court found that the complainant was a consumer as per the definition under the Consumer Protection Act, 1986, and that there was deficiency in services rendered by the opponent. The court awarded compensation to the complainant for the delay in delivery of goods and mental harassment.

Fact of the Case:

The complainant ordered key equipment for a project, but the opponent delayed the delivery, causing loss to the complainant. The complainant filed a consumer complaint demanding compensation for the loss and mental harassment.

Finding of the Court:

The court found that the complainant was a consumer and there was deficiency in services rendered by the opponent. The court awarded compensation to the complainant for the delay in delivery of goods and mental harassment.

Issues: 1. Whether the complainant is a consumer as contemplated in Consumer Protection Act, 1986? 2. Whether there is deficiency in services rendered by the opponent? 3. Whether the complainant is entitled to compensation?

Ratio Decidendi: The court determined that the complainant was a consumer as per the definition under the Consumer Protection Act, 1986, and that there was deficiency in services rendered by the opponent, leading to the award of compensation.

Final Decision: Consumer complaint is partly allowed. Opponent is directed to pay an amount of Rs. 1,50,000 to the complainant as compensation along with interest @ 12% p.a. from the date of complaint. Opponent is also directed to pay an amount of Rs. 20,000 to the complainant on account of mental harassment. Opponent is further directed to pay an amount of Rs. 15,000 to the complainant towards costs of this complaint.

ORDER :

1. Complainant established a new project in Aluminium Extrusion at MIDC Area, Ahmednagar. Complainant has placed orders to the opponent to supply key equipment such as Furnace Oil Burner, Billet Heater, Hot Air Generator for ageing oven, etc. along with required attachments, spares, etc. As per the mutual agreement, it has been decided that the supplier supposed to deliver those three units on 9.2.1998, 25.3.1998 and 14.4.1998 respectively. Complainant has also paid advance amounts in time.

2. As per the complainant, opponent delayed the delivery of these units by two months because of that further entire commissioning part with successful trials also got delayed. Because of the said delay, complainant suffered loss to the extent of Rs. 10,000 per day for the period of 120 days. It was contended by the complainant that the opponent failed to render the services and hence the complainant filed consumer complaint demanding Rs. 12,00,000 towards loss of production due to failure in services. Complainant prayed for 21% p.a. interest on the said amount. Complainant also prayed for Rs. 25,000 for mental harassment.

3. Opponent has resisted the claim by filing written version on record. Opponent has not disputed about the order placed by the complainant and about the advance. However, opponent has disputed that time was not of the essence for the supply of the said goods covered under the said quotation of the opponent. Some changes were to be made by the complainant. Since the complainant has not made changes within time, there was delay in work of commissioning the units. It was contended that when the complainant after completing his work called the opponent to tune up the components to match the increased production level, the opponent completed the said task through its technical staff from 7.8.1998 to 12.8.1998, 6 days and from 31.8.1998 to 5.9.1998-6 days. Opponent has contended that there was no deficiency in service and prayed for dismissal of the consumer complaint with costs. It was also contended that the complainant is not a consumer. On that ground also, consumer complaint may be dismissed.

4. From the rival contentions of the parties, from the record and scope of the complaint, following points arise for our determination and our findings thereon are given as below:

Whether the complainant is a consumer as contemplated in Consumer Protection Act, 1986?

Yes

Whether there is deficiency in services rendered by the opponent?

Yes

Whether the complainant is entitled for the compensation, if yes, what extent?

Yes, as per final order.

Point No. 1:

It is argued by the Advocate of the opponent that those orders were made by the complainant and purchased for commercial purpose. The orders were of 1998 and as per Section 2(i)(d) of the Consumer Protection Act, 1986, the person who buys the goods for commercial purpose is not a consumer. It was argued that in view of the said definition of consumer, the complainant is not a consumer.

5. Learned Advocate for the complainant has submitted that the complaint is for deficiency of services and not for the purchase of goods or deficiency in goods and hence definition of consumer in the year 1998 i.e. before amendment of 2003, the complainant is a consumer. After considering this submission and relevant provision, we find that there is much substance in the argument. Reason is that prior to amendment of 2003, the person who obtains goods for resale or any commercial purpose was excluded from the definition of the ‘Consumer’. However, as per the definition at the relevant time, person availing services for commercial purpose otherwise was not excluded from the definition of the ‘Consumer’.

6. Learned Advocate of the opponent has argued that the amendment is retrospective in effect and hence the complainant is not a consumer in view of the amendment of 2003

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