Punjab Water Supply & Sewage Board Vs.
M/S. Udaipur Cement Works & Anr [1995] INSC 670 (13 November 1995)
Kuldip
Singh (J) Kuldip Singh (J) Ahmad Saghir S. (J)
CITATION:
1996 AIR 537 1995 SCC Supl. (4) 117 1995 SCALE (6)327
ACT:
HEAD NOTE:
O R D
E R
Punjab
Water Supply and Sewage Board, Chandigarh (the Board) filed a complaint before
the Consumer Disputes Redressal Commission, U.T. Chandigarh (Commission)
against M/s. Udaipur Cement Works, Udaipur, Rajasthan (the cement works),
alleging, inter alia, deficiency in service in the supply of cement for which
confirmed orders were placed by the Board. The Commission allowed the complaint
and awarded 12% interest to the Board for the period during which the amount of
deposit remained with the cement works. The National Consumer Disputes Redressal
Commission (the National Commission) by the order dated September 27, 1994 reversed the order of the
Commission and dismissed the complaint of the Board. This appeal by way of
special leave is against the order of the National Commission.
The
Commission noticed the admitted facts, which emerged from the pleadings of the
parties, in the following words:
"Certain
undisputed facts emerge in this case. The salient ones are that the complainant
placed an order for the supply of cement with the respondent firm and for this
purpose, an amount of Rs.23,62,900/- was remitted to the respondent firm and by
means of three o Bank Drafts. According to the order as confirmed, 2500 M.T.
Cement had to be supplied on or before 7.3.1988. There is also no controversy
about the fact that the goods in question were delivered to the complainant in
November, 1990 and that too at the higher rate and not at the original rate as
agreed to at the time of placing the order. In the wake of these undisputed
facts, the points raised in defence on behalf of the respondent firm may be
considered." The National Commission allowed the appeal of the cement
works and set aside the order of the Commission by a short order which is
reproduced hereunder:
"In
our opinion the counsel appearing for the Appellant is well founded in his
submission that there was no arrangment of hiring of service at all between the
parties in this case since the transaction is one of sale and purchase simplicitor
namely the sale and purchase of a specified quantity of cement which was to be
supplied by the Appellant herein to the Respondent. In these cumstances no
question of deficiency in ervice can arise so as to entitle the complainant to
invoke the jurisdiction of the Consumer Forum when there was no case at all of
any defect in the goods supplied. Unfortunately, this important aspect of the
case was lost sight of by the State Commission and it proceeded to grant relief
to the Complainant on the ground that delay in the supply of cement constituted
deficiency in service. We hold that the said Order of the State Commission is
clearly illegal and without jurisdiction and is hereby set aside. The
Complainant will be at liberty to pursue whatever other remedies are open to
him in law." We do not appreciate the blanket observation of the National
Commission to the effect that where the transaction is one of sale and purchase
simplicitor "no question of deficiency in service can arise so as to
entitle the complainant to invoke the jurisdiction of the Consumer Forum when
there was no case at all of any defect in the goods supplied". The
impugned order of the National Commission is rather mechanical. Learned counsel
for the parties have invited our attention to Section 2 (c), (d), (f), (g), (o)
and various other provisions of the Consumer Protection Act, 1986 (the Act).
The National Commission, in our view, should have appreciated the pleadings of
the parties in the light of various provisions of the Act.
We
allow the appeal, set aside the impugned order of the National Commission and
remand the case to the National Commission to hear the appeal against the order
of the Commission afresh after affording opportunity to the parties. It will be
open to the parties to raise relevant questions of law and fact before the
National Commission. No costs.
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