legal business

8/2/2019 legal business

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1. (A) Distinguish between a condition and a

warranty. Discuss the implied conditions and

warranties in a contract of sale of goods.

CONDITION:

It is a stipulation which is essential to the main purpose of the

contract and the breach of which gives the aggrieved party a

right to terminate the contract.

Example: X company manager went to electronic gadget

company and asked the electronic company to suggest bestLaptops for official usage. Then electronic manager sold

Laptops to x company manager for a certain price.

Interestingly it is found that the Laptops are consuming more

power and problem in battery back up. In this case, usage of

laptops for official usage was a condition of contract.It is clear

that X is entitled to reject the laptops and refund the price

paid to electronic manager.

WARRANTY:

A warranty is a stipulation which is collateral to the main

purpose of the contract and the breach of which gives the

aggrieved party a right to claim damages but not a right to

reject goods and to terminate the contract.

Example: X asked a car company dealer to suggest him a good

digital camera. The dealer suggested a car which can run 30

km per litre of petrol. Interestingly it is found in usage that the

car runs only

24 km per litre of petrol.In this case statement made by dealer

was a warranty.X was, therefore not entitled to reject the car

but he was entitled to claim the damages.

SERIAL

NUMBER

Basis of

Distinction

condition warranty

1 Essential vs. It is a It is stipulation


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Collateral stipulation

which is

essential to

the main

purpose of

the contract

which is only

collateral to

the main

purpose of the

contract

2 Right in case

of Breach

The aggrieved

party can

terminate the

contract

The aggrieved

party can

claim

damages but

cannot

terminatecontract

3 Treatment A breach of

condition can

be treated as

a breach of

warranty. For

example, a

buyer may like

to retain the

goods and

claim only

damages

A breach of

warranty

cannot be

treated as

breach of

condition.

When condition to be treated as warranty [Section 13]

Where the buyer waives a condition; once the buyer

waives a condition, he cannot insist on its fulfilment e.g.

accepting defective goods or beyond the stipulated time

amounts to waiving a condition.

Where the buyer elects to treat breach of the condition as

a breach of warranty

Where the contract is not severable and the buyer has

accepted the goods or part thereof, the breach of anycondition by the seller can only be treated as breach of


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warranty. It cannot be treated as ground for rejecting the

goods unless otherwise specified in the contract. Thus

where the buyer after purchasing the goods finds that

some condition is not fulfilled, he cannot reject the goods.

He has to retain the goods entitling him to claim

damages.

Express and Implied Conditions and warranties:

In a contract of sale of goods, conditions and warranties may

be express or implied.

(a) Express Conditions and warranties: These are expressly

provided in the contract. For example, abuyer desire to bya SONY TV model No. 2062. Here model Number is an

express condition. In an advertisement for Khaitan fans,

Guarantee for 5 years is an express warranty.

(b)Implied conditions and warranties: These are implied by

law in every contract sale of goods, unless a contrary

intention appears from the terms of the contract. The

various implied conditions and warranties have been

shown below.

IMPLIED CONDITIONS AND

WARRANTIED

IMPLIED CONDITIONS IMPLIEDWARRANTIES

Conditions as to Title

[Section 14(a)]

Condition in case of sale by

Description[section 15]


sample[section 17]


description and

sample[Section 15] Condition as to merchantable

quality[Section 16(2)]

Condition as to whole

someness

Condition implied by Custom

[ Section 16(3)]

Warranty as to quiet

possession[section 14(b)]

Warranty of freedom from

encumbrances [ Section 14

]

Warranty as to quality or

fitness for a particular

purpose annexedby usage

of trade[Section 16(3)]


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Implied Conditions:

[ section14(A),15(1),16(1),16(2),16(3),17]

(a)Condition as to Title[ Section 14(a)]

There is an implied Condition on the part of the seller that

(i) in the case of a sale, he has a right to sell the goods,

and

(ii) in the case of an agreement to sell, he will have a

right to sell the goods at the time when the property

is to pass.

(a)Sale by Description[section 15]

Where there is contract of sale of goods by description,

there is an implied condition that the goods shall

correspond with description. The main idea is that goods

supplied must be same as were described by the seller.

Sale of goods by Description includes many situations as

under:

(1)Where the buyer has never seen the goods and buys

them only on the basis of description given by the

seller.

(2)Where the buyer has seen the goods but he buys them

only on the basis of description given by the seller.

(3) Where the method of packing has been described.


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(a)Condition as to quality or fitness[ Section 16(1)]

There is no implied condition as to the quality or fitness

for any particular purpose of goods supplied under

contract of sale. In other words, the buyer must satisfy

himself about the quality as well as the suitability of the

goods. This is expressed by the maxim caveat emptor.

( let the buyer beware)

(b)Sale by sample[ section 17]

A contract of sale is a contract for sale by sample when

there is a term in the contract, express or implied, to that

effect. Such sale by sample is subject to the following 3

conditions

The goods must correspond with sample in quality

The buyer must have a reasonable opportunity of

comparing the bulk with the sample.

The goods must be free from any defect which

renders them unmerchantable and which would not

be apparent on reasonable examination of the

sample .such defects are called latent defects and

are discovered when the goods are put to use.it may

be noted that the seller cannot be held liable for

apparent or visible defects which could be easily

discovered by an ordinary prudent person.

(a) Sale by sample as well as description[section 15] if the

sale is by sample as well as by description, the goods

must correspond with the sample as well as description.

(b)Condition as to merchantable quality[section 16(2)]

Where the goods are brought by description from a seller

who deals in goods of that description whether he is the

manufacturer or producer or not), there is an implied

condition that the goods shall be of merchantable quality.

The expression merchantable quality means that the

quality and condition of the goods must be such that a

man of ordinary prudence would accept them as the


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goods of that description. Goods must be free from any

latent or hidden defects.

Implied warranties: [ SECTION 14(B),14(C) and

16(3)]

(a) Warranty as to quiet possession [ Section 14(b)] there

is an implied warranty that the buyer shall have and

enjoy quiet possession of the goods. The reach of this

warranty gives buyer a right to claim damages from the

seller.

(b)Warranty of freedom from encumbrances[ section

14(c)] There is an implied warranty that the goods are

free from any charge or encumbrances in favour of any

third person if the buyer is not ware of such charge or

encumbrances. The breach of this warranty gives buyer

a right to claim damages from the seller.

(c)Warranty as to quality or fitness for a particular

purpose which may be annexed by the usage of

trade[Section 16(3)]

(d) Warranty to disclose dangerous nature of goods. In

case of goods of dangerous nature the seller must

disclose or warn the buyer of the probable danger. If

the seller fails to do so, the buyer may make him liable

for breach of implied warranty.

1(B). Who is unpaid seller? Compare his right of lien and

stoppage in Transit.

Unpaid seller:

When the whole of the price has not been paid or

tendered


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When a bill of exchange or other negotiable instrument

( such as cheque) has been received as conditional

payment, and it has been dishonoured[ section 45(1)].

The term seller includes any person who is in the position

of a seller ( for instance, as agent of the seller to whom the

bill of lading has been endorsed, or a consignor or agent who

has himself paid, or is directly responsible for the price)

[ Section 45(2)].

1. The seller shall be called an Un paid seller even when

only a small portion of the price remains to be paid.2. It is the for the non-payment of the price and not for

other expenses, that a seller is termed as an unpaid

seller

3. Where the goods have been sold on credit, the seller

cannot be called as an unpaid seller during the credit

period unless the buyer becomes insolvent. On the

expiry of credit period if the price remains unpaid,

then only the seller will become an unpaid seller.4. Where the full price has been tendered by the buyer

and the seller has refused to accept it, the seller

cannot be called as unpaid seller

Rights of an Unpaid seller[ Section 46-52,54-56,60-61]

The rights of an unpaid seller can broadly be classified

under the following two categories.

Rights against the goods

Right against buyer personally


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1. Right against the goods where the property in the goods has

passed to the buyer

(a)Right of lien[ Section 47,48 and 49]

Meaning of Right of Lien: The right of lien means the

right to retain the possession of the goods Until the

full price is received.

Three circumstances under which right of lien can be

exercised [ section 47(1)] The unpaid seller of Goods who

is in possession of them is entitled to retain possession of

them until payment or tender of the price in the following

cases:

Where the goods have been sold without any

stipulation to credit;

Where the goods have been sold on credit, but the

term of credit has expired and

Where the buyer becomes insolvent

Other provisions regarding right of lien [Section 47(2),

48,49(2)]

The seller may exercise his right of lien, even if he

possess the goods as agent or bailee for

buyer[section 47(2)]

The seller may exercise his right of lien eventhough he has obtained a decree for the price of

the goods[section 49(2)]

Circumstances under which right of lien is lost [section

49(1) and 53(1)]

When he delivers the goods to a carrier or

other bailee for the purpose of transmission to


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The seller must have parted with

possession of goods,i.e the goods must

not be in the possession of seller

The goods must be in the course of transit

The buyer must have become insolvent.

Note: the buyer is said to be solvent which

he has ceased to pay his debts in ordinary

course of business or cannot pay his debts

as they become due, whether he has

committed as act of insolvency or not.

Distinction between right of lien and right of stoppage

in Transit

Basis of

distinction

Right of lien Right of stoppage

in Transit

Possession of

goods

The goods must

be in actual

possession of theseller

The goods must

be in the

possession of acarrier or other

bailee who is

acting as an

independent

person

solvency The right can be

exercised even

when the buyer is

This right can be

exercised only

when the buyer


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solvent but

refuses to pay

the price

has become

insolvent

End vs.commencement

on delivery to

carrier

This right comesto an end when

the seller delivers

the goods to a

carrier

This rightcommences only

when the seller

delivers the

goods to a carrier

purpose The purpose of

right is to retain

possession of the

goods

The purpose of

this right is to

regain the

possession of the

goods

Mode of

exercising the

right

This right can be

exercised by the

seller himself

The right can be

exercised by the

seller through the

carrier or the

other bailee

Right of stoppage in Transit as an extension of the right

of lien:

The right of stoppage in Transit is an extension of the

right of lien in the sense that the right of stoppage in

transit begins when the right of lien ends and the

purpose of the right of stoppage in Transit is to regain

possession of the goods.


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2. Explain the provisions relating to issue of cheque by

you to a supplier in terms of its honour as well as

dishonour of the same and provisions thereof.

A cheque is said to be bounced or dishonoured by non-payment when the drawee of the cheque makes default in

payment upon being duly required to pay the same.

A. Liability of drawee on dishonour of a cheque[section 31]

The drawee of a cheque must compensate the drawer

for any loss or damage caused by non-payment if the

following 3 conditions are fulfilled.

(a)If the drawee has sufficient funds of the drawer in hishands;

(b)If the funds are properly applicable to such payment;

(c)If the drawee is duly required to pay the cheque.

Note: the drawee (i.e paying banker) is liable to

drawer and not to

any other person.

A. Liability of drawer on dishonour of a cheque[section

138]

On dishonour of a cheque, the drawer is punishable

with imprisonment for a term not exceeding 1 year or

with fine not exceeding twice the amount of a cheque

or with both if the following conditions are fulfilled.

(a)If the cheque was drawn to discharge a legally

enforceable debt or other liability

(b)If the cheque is returned by the bank unpaid due to

insufficiency of funds in the account of drawer

(c)If the cheque has been presented to the bank with in

a period of six months from the date on which it is


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drawn or within the period of its validity, which-ever

is earlier.

(d)If the payee or the holder in due course of the

cheque has made a demand for the payment of the

said amount of money by giving a notice, in writing,

to the drawer of the cheque within 15 days of the

receipt of information by him from the bank

regarding the return of the cheque as unpaid; and

(e)If the drawer of such cheque has failed to make the

payment of the said amount of money to the payee

or to the holder in due course of the cheque, with in

fifteen days of the receipt of the said notice.

A.Cases in which a banker must refuse to Honour a

customers cheque

A bank must refuse to honour a customers cheque in

the following cases:

(a)STOP PAYMENT: When the bank receives instructions

from the customer not to honour (stop payment) a

particular cheque issued by him.

(b)Garnishee order: when the banker receives a

Garnishee order, a prohibiting order by any court

attaching the money in the customers account.

(c)Death: when the banker receives a notice of the

death of his customer.

(d)Insolvency: when the banker receives a notice of the

insolvency of his customer.

(e)Insanity: when the banker receives a notice of the

insanity.

(f)Assignment: when the banker receives a notice of

assignment of his credit balance from a customer.

(g)Defect in Title: when the banker suspects or has to

reason to believe that the title of the person

presenting the cheque is defective.

(h)Loss of cheque: when the banker receives a notice ofloss of cheque from his customer.


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(i) Material alteration: when there is a material

alteration in the cheque and such alteration has not

been authenticated by his customer by putting his

signature.

(j) Different signature: when the signature of the drawer

does not tally with the specimen signature kept by

the bank.

(k)Notice of closure: when the banker receives a notice

in respect of closure of account.

(l) Irregular endorsement: when there is an irregular

endorsement.

D.Cases in which a banker may refuse to Honour acustomers cheque:

A banker may refuse to honour a customers cheque in the

following cases:

(a) Insufficient funds: when funds in the customers account

are insufficient to honour the cheque presented.

(b)Funds not applicable: when funds in the customers

account are not applicable for the cheque presented.(c)Presentment at different branch: when the cheque is

presented at the branch other than the branch where the

customer who has issued the cheque, has the account.

(d) Presentment after banking hours: when the cheque is

presented after the banking hours.

(e)Stale cheque: when the cheque is presented after 6

months from the date of its issue.

(f)Post date cheque: when the cheque is presented beforethe actual date on which it is written to be payable.

(g)Undated cheque: when the cheque is undated

3. Explain various provisions of breach of contract as well as

remedies available for a contract under the Contract Act, 1872. Give

suitable example cases for each point.


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A breach of contract occurs if any party refuses or fails to

perform his part of the contract or by his act makes it

impossible to perform his obligation under the contract. In case

of breach, the aggrieved party (party not an fault) is relieved

from performing his obligation and gets a right to proceed

against the party at fault. A breach of contract may rise in 2

ways

(a) Anticipatory breach (b) actual breach.

Anticipatory breach of contract:

Meaning of anticipatory breach of contract [section 39]

Anticipatory breach occurs when the party declares his

intention of not performing the contract before the

performance is due. Thus, when a party refuses to perform a

contract even before it is due for performance, it is called

anticipatory breach.

Modes of declaring an Intention not performing the contract

[section 39]

A party may declare his intention of not performing the

contract in the following 2 ways:

(a)When a party to a contract has refused to perform his

promise.

Example: X, a farmer agrees to sell to Y his entire crops

of 10 tons of wheat@ Rs 8000 per ton to be delivered on

20th October. On 1st October, X informs y he is not going to

supply the goods. X has committed anticipatory breach of

contract by express repudiation.

(b)When a party to a contract has disabled himself from

performing his promise in its entirety.

Example: X, a farmer agrees to sell to Y his entire crop of

10 tons of wheat@ rupees 8000 per ton be delivered on

20th October. On 1st October, X sold his entire crop to z@


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Rs 10,000 per ton.X has committed anticipatory breach of

contract by implied repudiation.

Options available to aggrieved party [section 39]

In case of anticipatory breach, the aggrieved party has

the following options

(a)He can rescind the contract and claim damages for

breach of contract without waiting until the due date for

performance, or

(b)He may treat the contract as operative and wait till the

due date for performance and claim damages if the

promise still remains unperformed.

Consequences of treating contract as operative:

In case of anticipatory breach, if the aggrieved party treats the

contract as operative and waits till the due date for

performance, the consequences will be as follows:

(a)The promisor may perform his promise on or before the

due date of performance and the promise will be bound to

accept the performance.

(b)The promisor may take advantage of the discharge by

supervening impossibility arising between the date of

breach and the due date of the performance and in such a

case, the promise shall lose his right to sue for damages.

Example: X, a farmer agreed to sell to Y his entire crop of

wheat@ Rs 8000 per ton to be delivered on 20th October. On 1st

October, X informed Y that he was not going to supply the

goods. Y decided not to rescind the contract on 1st October and

to wait till 20th October. On 19th October, the entire crop was

destroyed by fire without the fault of either party. Since the

contract had become void on the ground of impossibility of

performance. Y had lost his right to sue X for damages.


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Actual breach of contract:

Actual breach of contract may take place in any of the

following 2 ways:

(a)On due date of performance: if any party to contract

refuses or fails to perform his part if the contract at the

time fixed for performance, it is called an actual breach of

contract on due date of performance.

Example: X agreed to sell to Y 10 Tons of wheat@ 8000

per ton to be delivered in 2 equal instalments on 20th

October and on 21st October. On 20th October, X refused to

deliver the goods. It is an actual breach of contract on due

date of performance.

(b)During the course of performance: if any party has

performed a part of the contract and then refuses or fails

to perform the remaining part of the contract,it is called

an actual breach of contract during the course ofperformance.

Example: X agreed to sell to Y 10 tons of wheat@ Rs 8000

per ton be delivered in 2 equal instalments on 20th October and

21st October. On 20th October, X delivered 5 tons and refused to

deliver remaining 5 tons. It is an actual breach of contract

during the course of performance.

Consequences of actual breach [section 55]

The consequences of actual breach depends upon whether the

time was the essence of the contract or not. The consequences

in both the cases may be s

Where time is the

essence of a

contract

Where time is not

the essence of a

contract

1. Whether the yes No


18/26

contract

becomes

voidable at the

option of the

promisee

2. Whether the

promise is

entitled to

claim the

compensation

for any loss

occasioned tohim by the

non-

performance

of the promise

at the

stipulated time

(1)Where theperformanc

e beyond

the

stipulated

time is not

accepted

(2)Where

performanc

e beyond

the

stipulated

time isaccepted

Yes

NO, Unless the

promise gives

notice to thepromisor of his

Yes

No, Unless the

promise gives


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intention to do so notice to the

promisor of his

intention to do so.

Example: X, a singer, enters into a contract with Y, the

manager of a theatre, to sing at his theatre 2 nights in every

week for the next 2 months. Y agrees to pay her Rs 100 for

each performance. On the 6th night, X wilfully absents herself

from the theatre. In this case, Y has the following 2 options.

(a)Y may rescind the contract and claim compensation for

the loss occasioned to him by X failure to sing on 6th

night.

(b)Y may permit X to sing on seventh night and claim

compensation for loss from X by giving a notice to X of his

intention to do so.

REMEDIES FOR BREACH OF CONTRACT

Remedy: A remedy is the course of action available to an

aggrieved party( the party not at default) for the enforcementof a right under a contract.

Remedies for breach of contract:

The various remedies available to an aggrieved party are

shown below

Rescission of contract[ section 39] Rescission means a

right not to perform obligation.

In case of breach of a contract, the promise may put an end to

the contract. In such a case, the aggrieved party is discharged

from all the obligations under the contract and is entitled to

claim compensation for the damage which he has sustained

because of the non- performance of the contract.


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Example: X agrees to supply 10 tons of wheat to Y on 20th

October. Y promises to pay for the goods on its receipt.X does

not supply the goods on the due date. Here, Y is discharged

from the liability of paying the price. Y IS ENTITLED TO Rescind

the contract and to claim compensation for the damage which

he has sustained because of non supply of goods on the due

date.

Suit for specific performance:

It means demanding the courts direction to the defaulting party

to carry out the performance according to the terms of

contract.

Example: X agreed to sell an old painting to Y for rupees

50,000. Subsequently X refused to sell the painting here. Here

Y may file a suit against X for the specific performance of the

contract.

Cases where suit for specific performance is not maintainable.

(1)Where the damages are considered as an adequate

remedy.

(2) Where the contract is of personal nature,e.g contract to

marry.

(3)Where the contract is made by a company beyond its

powers as laid down in its memorandum of association

(4)Where the court cannot supervise the performance of the

contract.(5)Where one of the parties is a minor.

(6)Where the contract is inequitable to either party.

Suit for Injuction: Suit for Injuction means demanding

courts stay order. Injuction means an order of the court

which prohibits a person to do a particular act. Where a

party to a contract does something which he promised not


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to do, the court may issue an order prohibiting him from

doing so.

Example: W agreed to sing at Ls THEATRE only during the

contract period. During the contract period, w made

contract with Z to sing at another theatre and refused to

perform the contract with L. It was held that w could be

restrained by Injuction from singing for Z.

Suit for quantum meruit: quantum meruit means as

much as is earned right to quantum meruit means a right

to claim the compensation for the work already done.

Example: C an owner of a magazine Engaged P to write a

book to be published by instalments in his magazine. After

a few Instalments were published, the publication of the

magazine was stopped. It was held that p could claim

payment for the part already published.

4. Explain with a case example how a consumer can file a case

under the provisions of the Consumer Protection Act, 1986

starting from the Dist. Forum and Appeals thereof till last level.

Give a detailed analysis of the said case example as it would

stand scrutiny of the legal provisions.

History of consumer Protection act

The Consumer Protection Act, 1986 (in short, the Act), is a benevolent social

legislation that lays down the rights of the consumers and provides their forpromotion and protection of the rights of the consumers. The first and the only Act ofits kind in India, it has enabled ordinary consumers to secure less expensive andoften speedy redressal of their grievances. By spelling out the rights and remediesof the consumers in a market so far dominated by organized manufacturers andtraders of goods and providers of various types of services, the Act makes thedictum,caveat emptor(buyer beware) a thing of the past.

The Act mandates establishment of Consumer Protection Councils at theCentre as well as in each State and District, with a view to promoting consumerawareness.


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The Central Council is headed by Minster, In-charge of the Department ofConsumer Affairs in the Central Government and the State Councils by the MinisterIn-charge of the Consumer Affairs in the State Governments. It also provides for a 3-tier structure of the National and State Commissions and District Forums for speedyresolution of consumer disputes.

To provide inexpensive, speedy and summary redressal of consumerdisputes, quasi-judicial bodies have been set up in each District and State and at theNational level, called the District Forums, the State Consumer Disputes RedressalCommissions and the National Consumer Disputes Redressal Commissionrespectively. At present, there are 629 District Forums and 35 State Commissionswith the National Consumer Disputes Redressal Commission (NCDRC) at the apex.NCDRC has its office at Upbhokta Naya Bhawan, 'F' Block, GPO Complex, INA,New Delhi-110 023.

Each District Forum is headed by a person who is or has been or is eligible to

be appointed as a District Judge and each State Commission is headed by a personwho is or has been a Judge of High Court.

The National Commission was constituted in the year 1988. It is headed by asitting or retired Judge of the Supreme Court of India. The National Commission ispresently headed by Honble Mr. Justice Ashok Bhan, former Judge of the SupremeCourt of India as President and has seven Members, viz. Honble Mr. AnupamDasgupta, Honble Mr. S. K. Naik, Honble Mr. Justice R.C. Jain, Hon'ble Mrs.Vineeta Rai, Hon'ble Mr. Vinay Kumar, Hon'ble Mr. Suresh Chandra & Hon'ble Mr.Justice V.B Gupta,.

The provisions of this Act cover goods as well as services. The goods arethose which are manufactured or produced and sold to consumers throughwholesalers and retailers. The services are in the nature of transport, telephone,electricity, housing, banking, insurance, medical treatment, etc.

A written complaint, can be filed before the District Consumer Forum forpecuniary value of upto Rupees twenty lakh, State Commission for value uptoRupees one crore and the National Commission for value above Rupees one crore,in respect of defects in goods and or deficiency in service. The service can be ofany description and the illustrations given above are only indicative. However, nocomplaint can be filed for alleged deficiency in any service that is rendered free of

charge or under a contract of personal service.The remedy under the Consumer Protection Act is an alternative in addition

to that already available to the aggrieved persons/consumers by way of civil suit. Inthe complaint/appeal/petition submitted under the Act, a consumer is not required topay any court fees but only a nominal fee.

Consumer Fora proceedings are summary in nature. The endeavor is madeto grant relief to the aggrieved consumer as quickly as in the quickest possible,keeping in mind the provisions of the Act which lay down time schedule for disposalof cases.


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If a consumer is not satisfied by the decision of a District Forum, he canappeal to the State Commission. Against the order of the State Commission aconsumer can come to the National Commission.

In order to help achieve the objects of the Consumer Protection Act, the

National Commission has also been conferred with the powers of administrativecontrol over all the State Commissions by calling for periodical returns regarding theinstitution, disposal and pendency of cases. The National Commission isempowered to issue instructions regarding (1) adoption of uniform procedure in thehearing of the matters, (2) prior service of copies of documents produced by oneparty to the opposite parties, (3) speedy grant of copies of documents, and (4)generally over-seeing the functioning of the State Commissions and the DistrictForums to ensure that the objects and purposes of the Act are best served, withoutinterfering with their quasi-judicial freedom.

Explanation by giving an example: how a consumer can

file a case under the provisions of the consumer

protection act,1986 starting from district level to

National commission.


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1986-2004 CONSUMER 6979(NS)

NATIONAL CONSUMER DISPUTES REDRESSAL

COMMISSION , NEW DELHI

President: Honble Mr. Justice D.P.Wadhwa

Members: Honble Mr. Justice J.K. Mehra,

Mrs Rajayakashmi rao and Mr. B.K. Taimi

Shravan Kumar Tiwari and anotherPetitioners

Versus

M/s Eicher Tractors Ltd and another

Respondents

Revision Petition No. 178 of 2002

Decided on 25th January, 2002

Consumer Protection Act, 1986Section 21(b)revision

Tractoralleged manufacturing defectcomplaint

filed after 10 years of purchase of tractorheld state

commission rightly dismissed the complaint.

For the petitioner: Mr. S.K.Sharma, Advocate

ORDER


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Per Justice D.P. Wadhwa, President- This Petition is by

the Complainants who succeeded in the District forum

but on appeal filed by the Opposite parties-

respondents, the order of the District forum was set

aside and the Complaint dismissed.

1. Complainants-Petitioners had purchased a tractor

from the Opposite party-respondent No.2- Laxmi

Enterprises, the dealer; which tractor was

manufactured by M/S Eicher Tractors Ltd- Opposite

party- respondent No.1. The Tractor was purchased

on 23.1.1988 and its warranty period ended on

23.1.1988. This complaint came to be filed in 1994

and by order dated 4.2.1988 District Forum directed

that Complainants be provided with a new Tractor.

2. On appeal filed by the respondents, State Commission

noticed that Complainants were getting some minor

repairs done from the respondents and in fact in 1994

much after the expiry of the warranty period they

recorded satisfaction. yet they chose to file the

complainant and after 10 years of the purchase of the

Tractor, District forum directed that petitioners be

given a new Tractor. For all these 10 years

petitioners has used the Tractor. As noted above,

they were fully satisfied with repairs carried out to

the tractor in 1994. There was no manufacturing

defect in the Tractor. State Commission therefor,setaside the order of the District forum. It was

strenuously argued by Mr. Sharma that Tractor

manufacturing defect but he was Unable to explain to

us show complaint could have been maintainable in

the year 1994. In our view State Commission rightly

dismissed the Complaint. We find that it is not a fit

case for us to interfere with the order of State

Commission in exercise of our Jurisdiction under


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clause(b) of section 21 of the Consumer protection

Act,1986. This revision petition is dismissed.

Revision dismissed

References:

1. http://ncdrc.nic.in/

2. Business Laws
http://ncdrc.nic.in/http://ncdrc.nic.in/http://ncdrc.nic.in/

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