legal business
TRANSCRIPT
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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]
Condition in case of sale by
sample[section 17]
Condition in case of sale by
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
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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/