Archive for May, 2009

Mahalakashmi Oil Mills v Kusum Enterprises

Saturday, May 30th, 2009

Before  the District Consumer Disputes Redressal   Forum,  Mandi, H.P.

Complaint Case No.292/2008

Date of Institution 3-12-2008

Date of Decision    30-5-2009

Mahalakashmi Oil Mills  Village and Post Office Gutkar, Tehsil Sadar, District Mandi, H.P. through its partner Sh. Harsh Gupta  son of Sh. Beas Dev Gupta  resident of village and Post Office Gutkar, Tehsil Sadar, District Mandi, H.P.

…Complainant

V/S

Kusum Enterprises  33-B Adarsh Nagar, Jallandhar  through its Proprietor Smt. Kushm Chugh

…Opposite party

For the complainant         Sh.  Lokender  Kutleheria , Advocate

Opposite party               Exparte

Complaint under Section 12 of the

Consumer   Protection  Act, 1986.

ORDER.

This order shall dispose of a complaint under Section 12 of the Consumer Protection Act, 1986(   hereinafter referred to as the “Act”) instituted   by the complainant against the opposite party. The complainant   averred that  the complainant  is  a registered  firm. The    allegation of the complainant is that the  opposite party had supplied  shrink machine  to  the complainant  for wrapping   of  plastic bottles  on 28-2-2004 vide  purchase order dated 7-2-2004, but the  aforesaid machine did not  work   properly   as  the same  was causing  damage to the  plastic bottles . The complainant further alleged that  he  had  pointed out the  above defect to the  opposite party  and the opposite party  sent its Engineer   to the complainant’s concern , who checked the machine and found that the machine was defective . According to the complainant ,  the Engineer of the opposite party   assured  the complainant that  defective machine would   be changed  with new one   which was  replaced  accordingly but the  new  replaced machine    was also  defective  one . The complainant  again  pointed out the defect  to the opposite party causing production loss and sale  loss   to him and   opposite party  assured   the complainant   telephonically  to remove the machine  but   neither   machine  was replaced  nor  defect was rectified by the opposite party. The complainant    further averred that in compelling circumstances,   he purchased a new  machine of another company. The complainant alleged that   transportation  charges of  both the times of  delivery  of the machine  were borne  by the complainant firm  The complainant  alleged that  a sum of Rs.10,000/- was  paid as an advance  to the opposite party   by demand draft  dated 10-2-2004 and  is entitled to  refund of the amount  with interest  . The complainant   also alleged that   the firm  had suffered production loss   and  the act of the opposite party falls within  deficiency in service  as well as unfair trade practice  and had claimed a sum of Rs.50,000/- as damages . The complainant also averred that the opposite party was served with legal notice  dated  28-3-2008 but  it refused to accept the claim.  On these   allegations, the complainant  had sought a direction to the opposite party    to take away   the defective ,machine  and refund Rs.10,000/- with interest   .A sum of Rs.50,000/- has been claimed  as  damages  apart from costs of complaint.

2.                The  opposite party  filed reply by raising preliminary objections that  the complaint is not maintainable  as the complainant does not fall within the ambit  of consumer  as the  transaction  between the parties   is of commercial nature , that the complainant  had concealed the material facts  from this forum , that  no cause of action  has  arisen  to the complainant  within the   jurisdiction of this  Forum  because  as  per  the bill, all  the disputes   were subject to  Jalandhar jurisdiction and that the transaction took place on 7-2-2004 and the complaint had been filed on 28-11-2008 i.e. beyond the period of limitation. On merits , the opposite party  had  averred that  the complainant is  doing business  of commercial nature . It has been  admitted that  shrink machine    was  supplied to the complainant on 28-2-2004 vide  purchase order dated 7-2-2004. The opposite party had denied that   it had ever sent the Engineer     to the complainant’s concern   or the  machine was  replaced . The opposite party pleaded that  the machine   was not manufactured by  it .It has  been denied that  the complainant had suffered losses   due to the act of the  opposite party  and  complainant firm was   given any assurance for replacement of the  machine . The opposite party had denied that the machine was  defective .The opposite party had admitted that a sum of Rs.10,000/-  had been received   as advance money for machine  and  for failure   of the complainant firm to pay the balance amount , civil suit  in the court of Civil Judge , Junior   Division Jalandhar   was  filed on  30-7-2008.  The opposite party had  averred that   the  complainant  owed  a  sum  of Rs.25,360/- alongwith interest  and cost as on 30-7-2008 for which  a civil suit  is pending .  The opposite party had prayed for  dismissal of the complaint.  Be it stated that  later on   the opposite party  was  proceeded against exparte on  30-3-2009.

3.                The complainant had filed rejoinder reiterating the contents   of the complaint and denying  those   contrary to the complaint.

4.               We have heard   the  ld. counsel for the   parties and have also gone through the entire record.  The case of the complainant is that the opposite party   supplied him shrink machine  on 28-2-2004  vide purchase  order dated 7-2-2004 and he had paid a sum of Rs.10,000/- as an advance   to the opposite party  vide  demand draft dated 10-2-2004. According to the complainant,  said machine  did not  work properly because it was defective. Thereafter  ,  the engineer of the opposite party visited the  complainant’s firm  and   he found that the machine was defective and assured that  machine would be replaced, however,  thereafter  the opposite party neither  repaired the machine nor replaced the same  and ultimately the complainant issued a legal notice dated  28-3-2008 to the opposite party.  The complainant   averred that the cause of action  firstly accrued  to him  in the month of March 2004 when the machine was purchased and thereafter on 28-3-2008 when the opposite party  was served with legal notice and  on 18-11-2008  when the opposite party  flatly refused  to admit the  claim of the complainant.

5                           Now the  question  which arises for determination  by this Forum is as to    whether the  complaint filed  by the complaint before this Forum  is  within limitation. At this juncture  , it would  be relevant to make  a mention   to section 24-A  of the Act  which provides  limitation period  for admission of a complaint  which reads as under:-

“24-A. Limitation  period (1) The District Forum, the State Commission  or the National Commission shall not admit a complaint unless  it is filed within two years  from the date  on which the cause of action has arisen ,

(2)  Notwithstanding anything  contained  in sub section(1) a complaint may be entertained after the period specified in sub section (1) if the  complainant satisfies the District Forum, the State Commission  or the National Commission, as the case may be  that he had sufficient cause for not filing the complaint within such period  ;

Provided  that no   such complaint shall  be entertained  unless the National  Commission  the State Commission or the District Forum as the case may be  records its reasons for condoning such delay.”

The  perusal of  aforesaid section shows that  no complaint shall be admitted unless it is filed  within  two years  from the date  on which the cause of action has arisen and the complaint may be  entertained  after  stipulated  period  if the complainant shows that he had  sufficient  cause  for not filing of the  complaint within such  period . Admittedly  the  machine was  purchased by the  complainant  from the opposite party on 28-2-2004  vide purchase  order dated  7-2-2004 and the present complaint has been filed on  3-12-2008 i.e. much  beyond a period of  two years   as prescribed  under section 24-A of the Act. Though ,as per the case of the  complainant  fresh  cause of action  had arisen  to him  when the opposite party was served with legal notice dated 28-3-2008. However, in our opinion, the  service  of  legal notice   upon the opposite party will not extend  the period of limitation. The complainant has failed to show any sufficient cause  for not filing the  complaint within the prescribed period of limitation  by either  making averments in the complaint or by  moving a separate application` under  section 24-A (2) of the  Act for condonation of delay in filing the present complaint. In  a case  titled  State Bank of India vs M/S B.S. Agricultural Industries  (1) 2009(2) CPC-1, the  Hon’ble Apex court  had held  that it is the duty of the Consumer  Forum to take  notice  of  section 24-A and give  effect to it . It has further been held by the Hon’ble Apex court that  if the complaint is barred by time and yet the  consumer forum  decides  the complaint on merits , the  forum would be committing  an  illegality and therefore  the aggrieved party would be entitled to have such order  set aside . Since  in  the present  case  the machine in question was  admittedly  purchased on 28-2-2004 and the complaint was filed on 31-12-2008 i.e. much  beyond the period of limitation of two years  as prescribed under section 24-A of the Act  and the complainant has failed to show any   sufficient cause for  not  filing the complaint within prescribed period,  therefore, the complaint  cannot be entertained  by this   forum and it  deserves to be dismissed .

6                           In view of what has been discussed hereinabove , the complaint   is dismissed  being time barred.

7                   Copy of this order be supplied to the parties free of cost as per Rules.

8               File, after  due completion be consigned to the Record Room.

Announced

30-5-2009                                    (Sushil Kukreja ) President

*DKM*      ( Alkananda ) ( Lal Singh) Members