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2000 Supreme(Online)(J&K) 1

JAMMU AND KASHMIR HIGH COURT
unknown, unknown
Z. S. Traders – Appellant
Versus
SIEMENS Ltd. – Respondent
Consumer Complaint No. xxx



Advocates:
For the Appellants/Petitioners: unknown
For the Respondents: unknown

The purchase of goods for commercial purposes excludes the buyer from consumer protection as defined under the statute.

Headnote:(A) Jammu and Kashmir Protection Act, 1987 - Definition of 'Consumer' under Section 2(d) - Jurisdiction of State Commission - The complainant's purchase of X-Ray equipment primarily for commercial purposes falls outside consumer protection under the Act. (Para 34)

(B) The Commission established that the complainant has not demonstrated the equipment was purchased for self-employment, thus not qualifying as a consumer. (Para 34)

(C) The installed equipment claimed as defective was found functional by the time of the appeal, negating claims for damages. (Para 24)

Facts of the case:
The appellant, a pharmaceutical distributor, purchased an X-Ray plant for business operations, claiming deficiency in service by the respondent in installation and quality. The supplier's delay and ultimate functionality of the equipment led to the complaint's dismissal.

Findings of Court:
The State Commission ruled the appellant is not a consumer per the Act's definition, as the purchase was for commercial purposes.

Issues: Whether the appellant qualifies as a consumer under the Act; the jurisdictional bounds of the State Commission regarding the complaint.

Ratio Decidendi: Jurisdiction rests on the nature of the purchase; commercial intent excludes the purchaser from consumer definition under Section 2(d).

Result: Appeal dismissed.

Table of Content
1. understanding the purchase agreement and context of installation. (Para 1 , 3 , 4)
2. details of the complaint's basis regarding delivery and functionality. (Para 6 , 8)
3. arguments on jurisdiction concerning commercial purchase. (Para 9 , 11)
4. establishment of non-consumer status based on commercial intent. (Para 34)
5. final decision dismissing the appeal. (Para 35)

1. In this appeal order dated 14-8-1997 of Jammu and Kashmir State Consumers Protection Commission, (hereinafter for short State Commission), established under the provisions of Jammu and Kashmir Protection Act, 1987 (hereafter referred as Act) of dismissal of complaint of Appellant for recovery of cost of X - Ray Plant supplied by Respondent No. 1 to Appellant (with charges incurred in transportation) or return of this alleged defective plant and for compensation.

2. The factual matrix of the case necessary for our present purposes, follow hereafter.

3. Z. S. Traders, a Pharmaceutical distributing concern with its principal place of business at Municipal Road, Srinagar (facing District Police Lines, Srinagar) through its proprietor, on discussions and understanding with one Mr. Muzaffer Iqbal, Respondent No. 2, Engineer - cum - Representative of SIEMENS Ltd. Respondent 1, placed an order with Respondent No. 1 on 27-8-1994 for supply of X - Ray Plant 300 MA (Polyskop II) including Spot Film Device Kit and other accessories. The plant was to be handed over at Srinagar on the basis of home delivery and installation was to be carried out by the SIEMENS Ltd. In all cost of plant along with accessories was Rs. 5.00 lacs, to which Rs. 25,000/- was to be added as additional cost of Spot Film Device Kit and in all the bargain was struck at Rs. 5.25 lacs.

4. It was a condition of sale that before the X - Ray Plant was supplied and installed, the whole amount of Rs. 5.25 lacs was to be paid in advance. The Appellant made payment of Rs. 1.35 lacs and Rs. 4.11 lacs by drafts, acknowledged by opposite party. Vide purchasers order dated 27-3-1994 and letter dated 12-10-1994, the Respondent No. 1 informed the Appellant that the equipment has been booked on door delivery basis through M/s. Patel Roadways Ltd. As the Appellant did not receive the plant, therefore, he approached the Transport Co. He was informed that as the Transport Co. had no office at Srinagar therefore, declined to carry the equipment to Srinagar. Petitioner / Appellant proceeded to Jammu and got the equipment transported from Jammu to Srinagar, after collecting it from M/s. Patel Roadways Ltd., Jammu. This was in violation of the conditions of the agreement and contravened the terms of purchase / sale of the equipment and the petitioner was to pay transport charges in the sum of Rs. 1000/- on account of carriage of equipment to Srinagar. Besides, the petitioner was made to pay demurrage, wages to employees for running the activity for the said Unit and other expenses including tax, rent etc. of the Unit. Rupees 50000/- was spent on these counts. The equipment and plant was physically available at Srinagar on 2-12-1994.

5. One Mr. Bakshi, Engineer of Respondent was contacted. Mr. Bakshi rendered his service to instal X - Ray Plant. He took about 25 days, yet the plant was not functional. Mr. Bakshi found that the plant was gassy and accessories like Spot Filming Device, carriage for taking files, handle load sheet and M. A. Meter were missing. The matter was taken up with Respondent No. 1, who failed to send any team from Delhi to make the plant functional. The operation and commissioning of the plant was delayed and finally the plant was commissioned and made operational after the accessories and the tube were sent by Respondent No. 1.

6. The Appellant / complainant tendered a formal notice on 10-3-1995 to Respondent No. 1 claiming damages of Rs. 1,15,000/- and other charges for transportation and cost of Spot Film Device Kit in the order of Rs. 35,000/-. As there was no response, the petitioner














































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