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2023 Supreme(Online)(Del) 18332

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Rajiv Shakdher, J
Cloudtail India Private Limited – Appellant
Versus
Central Consumer Protection Authority – Respondent
Appeal | Case No. J - 25/72/2021



Advocates:
For the Appellants/Petitioners: Mr. Anand Grover, Mr. Harsh Hiroo Gursahani
For the Respondents: Mr. Siddhartha Sinha

Compliance with domestic standards is mandatory; failure to conform renders products defective under consumer protection laws.

Headnote:The matter concerns the enforcement of the Domestic Pressure Cooker (Quality Control) Order, 2020, mandating compliance with Bureau of Indian Standards. The appellant sold 1033 pressure cookers that failed to meet regulatory standards and were thus deemed defective. The respondent directed a recall and imposed a penalty for non-compliance. This appeal addresses the validity of the enforcement actions taken against the appellant. The appellant claimed conformance to European standards, yet the court found the lack of BIS certification constituted a defect under the Consumer Protection Act. The appeal was dismissed as the regulations were upheld.

Table of Content
1. arguments focused on compliance with european standards and the legality of imposed penalties. (Para 1 , 9 , 11 , 15)
2. failure to conform to quality standards renders products defective. (Para 2 , 4 , 5 , 6 , 8)
3. mandatory compliance for consumer rights protection emphasized. (Para 3 , 12 , 13 , 14 , 16)

1. Heard Mr. Anand Grover, Sr. Advocate, assisted by Mr. Harsh Hiroo Gursahani, Advocate, for the appellant and Mr. Siddhartha Sinha, Advocate, for the respondent.

2. Above appeal has been filed from the order of Central Consumer Protection Authority dated 14.11.2022, passed in Case No. J - 25/72/2021, directing the appellant to recall 1033 pressure cookers, sold by the appellant in the country, refunding its price to the consumers, within 45 days and imposed a penalty of Rs. 1,00,000, for selling the pressure cooker, in violation of Quality Control Order, 2020.

3. Ministry of Commerce and Industry, Government of India, in exercise of its power under S.17 read with S.25, of Bureau of Indian Standards Act, 2016 , issued Domestic Pressure Cooker (Quality Control) Order, 2020, (for short the Order) vide Notification dated 21.1.2020, published in the Gazette of India on 21.1.2020, making it mandatory for domestic pressure cooker to conform to the corresponding Indian Standard and bear Standard Mark under a licence from Bureau of Indian Standards, as per Scheme - I of Schedule - II of Bureau of Indian Standard (Conformity Assessment) Regulation, 2018, w.e.f. 1.8.2020. Ministry of Commerce and Industry, Government of India, in exercise of its power under S.16 read with S.25, of , vide Notification dated 23.6.2020 published in the Gazette of India on 23.6.2020, changed the enforcement date w.e.f. 1.2.2021.

4. Cloudtail India Private Limited (the appellant) was doing e - commerce through Amazon website, i.e. www.amazon.in in India. The appellant listed ˜Amazon Basics Stainless Steel Outer Lid Pressure Cooker, 4 Litre' on above website and sold 1033 pressure cookers in India after 1.2.2021. These pressure cookers were manufactured by "Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China and bears "European Commission Standard mark as established in the European Union and were imported into India, prior to issue of the Order.

5. Central Consumer Protection Authority (the respondent) is a statutory authority constituted under S.10 of the Consumer Protection Act, 2019 (for short as the Act). The respondent, in exercise of its power under S.18 of the Act, issued notice dated 29.11.2021 to the appellant to show cause as it were selling pressure cooker in violation of the Order, which was liable to be held as defective, violative of consumer right and amounts to unfair trade practice, within the meaning of the Act.

6. The appellant submitted its reply dated 11.1.2022, stating that the pressure cookers in question were manufactured by "Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China and conforms to the "European Commission Standard mark as established in the European Union Directives - 2014/68 / EU granted by TUV SUD, valid up to 13.12.2030 and holds a valid certification of conformance. Above company was an importer of the said product across the world including the countries like U.S.A., Canada and France etc. In order to ensure that the product is of requisite quality, the appellant used to carry out a pre - shipment inspection by a nominated third party inspection agency. When it passes the criteria specified in inspection protocol, the product is imported. The appellant imported the pressure cookers after obtaining inspection report. There was no complaint, related to safety of the pressure cooker, since its introduction in the market. The appellant has suspended import of this product in India prior to 1.2.2021, i.e. enforcement of the Order. The Order mandates domestic pressure cooker to certify and conform to Indian S
















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