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Ex.Gst.Sudarshan Kunwar v/s Capol Farm Equipment Limited


Company & Directors' Information:- SUDARSHAN (INDIA) PRIVATE LIMITED [Active] CIN = U74899DL1994PTC058770

Company & Directors' Information:- CAPOL FARM EQUIPMENT LTD [Active] CIN = U01119TG1984PLC004614

Company & Directors' Information:- KUNWAR AND COMPANY P. LTD. [Strike Off] CIN = U19129WB1989PTC047617

Company & Directors' Information:- GST PRIVATE LIMITED [Strike Off] CIN = U27104MH2002PTC136410

Company & Directors' Information:- SUDARSHAN CORPORATION PRIVATE LIMITED [Active] CIN = U27320PN2013PTC147816

    CA No. 341 of 1993

    Decided On, 10 October 2003

    At, Monopolies and Restrictive Trade Practices Commission New Delhi

    By, THE HONOURABLE MR. R.L. SUDHIR
    By, MEMBER & THE HONOURABLE MS. MOKSH MAHAJAN
    By, MEMBER

    For the Applicant: In Person. For the Respondent: Krishan Mahajan, Advocate.



Judgment Text

Moksh Mahajan, Member

1. The applicant has filed an application under Section 12B of the MRTP Act contending that he has been misled in purchasing a tractor ‘Sona Model’ from Eicher Tractors Limited, the respondent.

2. The facts as gathered from the petition filed before the District Consumer Court in Balia, U.P. (not mentioned in detail in the application filed before the Commission) are that the applicant purchased a tractor Engine No. 59828201979, Chasis No. 70310600440 which was installed on 16th November, 1988. The tractor is said to have developed problems right from the beginning. Engine started throwing oil which hampered the effective working. It had to be towed to the service station located at a distance of 30 kms. from the field. Despite substantial expenditure incurred on repairs, replacement of spare parts, it could not render continuous and promised service. On assurance of the engineer of the respondent, that the engine would be replaced soon, the applicant delayed the filing of the petition before the Commission. In the meantime, as contended the Bank auctioned the tractor along with the field to recover its loan raised for the purchase of the said tractor. As stated, the applicant suffered heavy losses because of the misrepresentation made within the meaning of the provisions of Section 36A of the Monopolies and Restrictive Trade Practices Act (hereinafter referred to as Act) for which it needs to be compensated.

3. Pursuant to the notice issued under Section 12B of the Act, the respondent contested the proceedings mainly on the ground of non-maintainability. As per contentions, the applicant has already moved the Consumer Forum at Balia on the same subject matter pertaining to the same cause of action. The compensation sought therein is at Rs. 40,000/-. On the said issue alone, contends the respondent, the application merits dismissal.

4. After the pleadings are complete, the following issues have been framed:

(1) Whether the respondents are or have been indulging in restrictive/unfair trade practices, as claimed in the compensation application?

(2) If the answer to the foregoing issue in the affirmative whether the restrictive/unfair trade practices are prejudicial to public interest or the interest of the consumer or the consumer generally.

(3) Whether the applicant has suffered any loss as a result of the unfair/restrictive trade practices?

(4) To what relief, if any, is the applicant entitled?

5. Evidence both documentary as well as oral was filed in support of the respective stand by the parties. We have given careful consideration to the submissions made on both sides in the light of the material placed on record.

6. On factual matrix, we find that the tractor was purchased for a sum of Rs. 1,05,000/-. Further expenditure had to be incurred on repairs and replacement of spare parts from time-to-time. As is evident from the dealer’s tractor 'history card', on 8th July, 1989, it was found that the oil consumption was very high. So was the case on 10th November, 1989 and 3rd December, 1989 when there was an oil leakage from silencer and smoke came from the tractor. Consequently, the spare parts had to be replaced. It is true that in absence of supporting documents exact amount expended on the repairs as well on replacement of parts is not available but it is also a fact that the same has not been denied by the respondent. The tractor barely worked for 20 days during the ploughing season (deposition of the applicant AW 1/1). Even the affidavits filed supporting the contentions of the applicant were not controverted by the respondent. The assurance given by the engineer of the respondent company that the engine would be replaced was not fulfilled. The witness of the respondent company on the other hand, had admitted that `Sona Model’ has since been updated which could have been given as promised. The fact that the tractor had to be auctioned ultimately shows the loss suffered by the applicant. The price fetched at Rs. 24,000/- is another pointer to the condition of the tractor at the time of auction. The material placed on record is an ample proof that continuous and effective services were not availed of by the applicant. Accordingly, the representation made regarding the standard and quality of the tractor sold by the respondent company came out to be false which establishes the unfair trade practice indulged in by the respondent.

7. The format and the manner in which the application has been filed reflects the ignorance of the provisions of the Act on the part of the person who in this case is the applicant himself. The application, not only lacks relevant details but also basic documents like invoices, repair bills etc. to fully prove the contentions raised. In the background, non-disclosure of information regarding the suit filed before Consumer Courts is explainable. Otherwise too, there is a technical violation of the Regulation 77 of the MRTPC Regulations, 1991 which have been framed to facilitate and not to defeat the object of the legislation, which is to provide speedy and convenient remedy to the consumers. It may, however, be stated that the petition filed before the Co

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nsumer Courts has since been dismissed having been withdrawn by the order of the court dated 12th May, 1994. 8. Keeping the totality of circumstances in view, it would be fair to determine compensation at Rs. 70,000/- the amount offered to the applicant to which respondent No. 2 showed his willingness to pay (order of the Commision dated 15th November, 2002. Respondent is directed to comply with the aforesaid order within four weeks from the receipt of the order and file an affidavit of compliance within two weeks thereafter. Application disposed of.
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