IMPORTANT POINTS
(1) Structural failure in the machines in a short span of one month amounts to deficiency in service.
(2) Selling machines of substandard quality and also having inherent defect amounts to unfair trade practice.

ORDER

Ms. Sunita Sharma Presiding Member:—Brief facts of consumer complaint:

1. Complainant filed present consumer complaint under Consumer Protection Act pleaded therein that complainant was executing 8 MW Raura Hydro Electric Project (Project) in Village Meeru/Urni, Tehsil Nichar at Bhabhanagar District Kinnaur H.P. The project when commissioned was to generate 8 MW Power. The project is of National importance considering the shortage of energy in the country. In terms of implementation agreement executed between the Government of Himachal Pradesh the power plant was to be commissioned by December 2015. The delay in completion of project attracts penal clauses as the implementation Agreement executed which attracts huge financial liabilities upon the project promoter. It is pertinent to mention here that the capacity of the project has been enhanced to 12 MW through Supplementary IA dated 01.02.2018. Copy of Implementation Agreement with GoHP and Supplementary Agreement are annexed as Annexure A-1 Colly.

2. The complainant has been working on the project in earnest in order to complete the same with time schedule. Construction of underground tunnel was one of main component for the establishment of project. For removal of the muck generated during blasting for the purpose of the construction of the tunnel, the complainant purchased two Nos. of Terex Heman 175 Skid Steer Loader powered with 60 HP Simpsons Engine, 4 Wheel Gear Drive, 10x16 Tyres Tubeless, 0.46 cum bucket alongwith free spares from the opposite party and the correspondences were started via email/ letters and queries were made. In these queries, one of the query dated 01.06.2013 from the complainant was that

“Our requirement is that machine should work on a slope of 1:7 in a tunnel. Please confirm.” On 03.06.2013 in reply to query the opposite party replied that “Machine shall work in this slope condition.” Before procurement of these two machines Mr. Manoj Kumar Sah-DGM-Projects and Mr. Vikas Pandey-Sr. Engineer employees had visited Terex factory on 24.02.2014 and the matter that these machines have to be used inside tunnel had been discussed in detail with Terex officials Mr. Umesh Pandey and others. Opposite party assured the complainant that machine is fit and suitable for the tunnel work. Copies of e-mail correspondence between the complainant and opposite party are enclosed as Annexure C-2.

3. Through work order No. DLIP/RAU/2013-14/08 dated 6th March 2014 the machines were purchased by the complainant and supplied as per the purchase order by the complainant against a total agreed contract price of Rs. 26,27,638.00. Copy of purchase order dated 06.03.2014 is Annexure C-3. The complainant paid entire final contract price on 29.03.2014 vide cheque No. 511255 dated 29.03.2014 and two purchased loaders were delivered to the complainant on 10.04.2014 at site in District Kinnaur Himachal Pradesh. The machines were made operative at site w.e.f 15.04.2014.

4. Both the loaders were unable to perform right from the beginning and showed manufacturing defects as early as in May 2014 when cracks developed in the lift arm assembly, quick hitch and buckets of both the loaders. These structural failures in the machines in a span of one month of their installation were clearly manufacturing defects and even admitted as such by officials deputed by the opposite party for their inspection at the site in July 2014. The state of the machines was such that the officers of the opposite party company has replaced bucket once quick hitch assembly twice and Lift Arm Assembly once completely free of cost for both of machines which are self enough to explain that their material was faulty and substandard. It is pertinent to mention here that by any means these machines are not suitable for the purpose of which opposite party sold it to the complainant and guaranteed the same.