M/S India Photographic Co. Ltd. Vs. H.D. Shourie
[1999] INSC 238 (3 August 1999)
R.P.Sethi,
S.Saghir Ahmed SETHI,J.
Alleging
that the appellant herein was selling the films as a representative of Kodak
without price being printed on the packages containing films, the respondent
filed a complaint before the District Consumer Disputes Redressal Forum, Delhi
(hereinafter referred to as `the District Forum') with a prayer for the
issuance of appropriate directions to protect the interests of the consumers.
It was contended that the price printing on the packages was mandatory under
the provisions of the Packaged Commodities Rules promulgated under the
Standards of Weights and Measures Act, 1976. The appellant put all sorts of
resistances in the disposal of the complaint. Writ petitions were filed in the
High Courts of Andhra Pradesh and Kerala with prayer for setting aside the
proceedings pending before the District Forum. The appellant , however, opted
not to file any reply to the complaint. Being satisfied that the High Courts,
where the writ petitions had been filed on behalf of the appellant had not
stayed the proceedings, the District Forum found that the complaint filed was
in the general interests of the consumers who were entitled to know the price
of the product which was required to be conspicuously displayed and if that was
not done, the interests of the consumers would be jeopardised resulting in the
charging of exorbitant price by the unscrupulous retailers dealing in the sale
of Kodak films. Being satisfied that the action of the appellant was in
violation of the rules applicable in the case, the District Forum vide its
order dated February 28, 1989 directed the appellant to display the sale price
of the film on the package in a manner so as not to violate the order of stay
passed by the High Courts where writs were pending within one month from the
date of the order under intimation to the District Forum. In appeal the State
Consumer Disputes Redressal Commission (hereinafter referred to as `the State
Commission') held that it would be in the in the interest of justice for the
appellant -company to (i) publish the price of the film in a national daily
fortnightly; (ii) to print notice on its invoice - asking the dealers to print
or attach a price tag on the film before selling it to the customer, (iii)
issue circulars to each dealer to print or affix a price tag on each film
before selling the film to the customer and (iv) attach price tag on each unit
in their own shop/outlet before it is sold to the customer. Not satisfied with
the order of the State Commission the appellant herein approached the National
Consumers Disputes Redressal Commission (hereinafter referred to as `the
National Commission' who vide the order impugned dismissed the revision petition
with the following observations:- "We would however clarify that when
cartons containing large numbers of film rolls are sold from their out-let on
wholesale basis in an unopen condition, it would constitute sufficient
compliance with the directions issued by the State Commission. If the revision
petitioner affixes to each carton a sticker clearly indicating the price at
which each film roll is to be sold in retail and the retailers are informed by
a circular that they are not to sell the rolls at any price exceeding what is
indicated on the sticker. In the event however, of the petitioner effecting
retail sales from their outlet in Janpath each packet containing a single roll
of film sold by them should bear a sticker showing the price of the film roll".
It is
contended on behalf of the appellant that the District Forum, the State
Commission and the National Commission were not justified in issuing the
directions to the appellant as according to their learned counsel neither any
rule nor any statute mandated or cast upon them an obligation to exhibit
/publish or print the price on the films rolls being imported and sold in India
by its distributor. It is submitted that sub-rule (2) of Rule 6 of the
Standards of Weights and Measures (Packaged Commodities Rules, 1977
(hereinafter called `the Rules') stood amended at the relevant time which
excluded the dealer from affixing the price on the package of the film roll.
The only requirement of law was to display prominently at a conspicuous place
of the premises in which the retail business was being carried on, the rates at
which the local taxes were leviable or at the most the price of the commodities
sold. The Consumer Protection Act, 1986 has been enacted to provide for better
protection of the interests of the consumers by making provisions for the
establishment of consumer councils, other authorities for the settlement of
consumer disputes and for matter connected therewith. The Act was enacted as a
result of wide spread consumer protection movement. On the basis of the report
of the Secretary General on Consumer Protection dated 27th May, 1983 , the United Nations Economic and
Social Council recommended that the world governments should develop,
strengthen and implement a coherent consumer protection policy taking into
consideration the guidelines set out therein. Each government was obliged to
set its own priorities for the protection of consumers in accordance with the
economic and social conditions of the country keeping in view the needs of its
people and bearing in mind the costs and benefit of the proposed legislation
Government were to further provide adequate infrastructure including the
establishment of public bodies as well as financial facilities to develop,
implement and monitor consumer protection policies. The introduction of new
products in the developing countries was to be assessed in relation to the
local conditions having regard to the existing production, distribution and
consumption patterns of the country or region concerned. The various enactments
such as the Contract Act, the Standards of Weights and Measures Act, the Motor
Vehicles Act , the Monopolies and Restricted Trade Practices Act, Food
Adulteration Act etc. were found to be inadequate in providing the relief to
the consumers. In discharge of the international obligations and to protect the
interest of the consumer in the country, the Consumer Protection Act, 1986 was enacted(hereinafter
called `the 1986 Act `.) The reference to the consumer movement and the
international obligations for protection of the rights of the consumer,
provision has been made herein with the object of interpreting the relevant law
in a rational manner and for achieving the objective setforth in the Act.
Rational approach and not a technical approach is the mandate of law.
The
Standards of Weights and Measures Act, 1976 ( Act 60 of 1976) was enacted to
establish standards of weights and measures, to regulate inter State trade or
commerce in weights and measures and other goods which are sold or distributed
by weight, measure or number and to provide for matters connected therewith or
incidental thereto. Section 83 empowers the Central Government to make rules
for carrying out the provisions of the said Act. In exercise of the aforesaid
powers, the Central Government made the "The Standards of Weights and
Measures (Packaged Commodities ) Rules 1977 (hereinafter called `the
Rules"). Chapter II deals with the provisions applicable to packages
intended for retail sale. Rule 3 provides that the provisions of the aforesaid
Chapter shall apply to packages intended for retail sales and the expression
"packaged" when it occurs, shall be construed accordingly. Rule 4
provides that no person shall pre-pack or cause or permit to be pre-packed any
commodity for sale, distribution or delivery unless the package in which the
commodity is pre-packed bears thereon or on a label securely affixed thereto
such declaration as is required to be made under the rules. According to Rule 5
specific commodities are required to be packed and sold only in standard
packages. Rule 6 as it existed at the relevant time provided thus:-
"6.Declaration to be made on every package-(1) Every package shall bear
thereon or on a label securely affixed thereto a definite plain and conspicuous
declaration, made in accordance with the provisions of this Chapter as, to –
(a) the
name and address of the manufacturer, or where the manufacturer is not the
packer, of the packer or with the written consent of the manufacturer, of the
manufacturer;
(b) the
common or generic names of the commodity contained in the package;
Explanation:-- Generic name in relation to a commodity means the name of the
genus of the commodity, for example, in the case of common salt, sodium
chloride is the generic name.
(c)
the net quantity, in terms of the standard unit of weight or measure, of the
commodity contained in the package or where the commodity is packed or sold by
number, the number of the commodity contained in the package;
(d) the
month and year in which the commodity is manufactured or pre-packed (e) the
unit of the commodity contained in the packages:
Provided
that this declaration is not necessary in the case of packages packed in the
standard quantities specified in the Third Schedule and the Sixth Schedule of
these rules:
Provided
further that such declaration shall not be necessary in the case of packages of
these commodities which are not specified in the Third Schedule but are packed
in quantities of 50 g. 100g. 200g, 500g 1kg. 2kg., 5kg., or in multiples of 5
kg. Or in 50 ml, 100 ml. 200 ml. 500 ml. 1 litre, 2 litres, 5 litres and in
multiples of 5 litres.
(f) the
sale price of the package;
(g) where
sizes of commodity contained in the package are relevant, the dimensions of the
commodity contained in the package and if the dimensions of the different
pieces are different, the dimensions of each such different piece;
(h) such
other matters as are specified in these rules:
Provided
that- (A) no declaration as to the month and year in which the commodity is
manufactured or pre-packed shall be required to be made on-
(i)
any bottle containing liquid milk, liquid beverages containing milk as an
ingredient, soft drink, ready-to-serve fruit beverages, or the like, which is
returnable by the consumer for being refilled;
(ii)
any package containing bread and any uncanned package of (a) vegetables ,(b)
fruits,(c) ice cream, (d) butter, (e) cheese, (f) fish, (g) meat or (h) any
other like commodity;
(iia)
liquid milk in pouches;
(iii)any
package containing metallic product;
(iv) any
cylinder containing liquified petroleum gas or any other gas;
(v) any
package containing chemical fertilizer;
(B)
wherein any packaging material bearing thereon the month in which any commodity
was expected to have been pre-packed is not exhausted during that month, such
packaging material may be used for pre-packing the concerned commodity produced
or manufactured during the next succeeding month and not thereafter, but the
Central Government may, it is satisfied that such packaging material could not
be exhausted during the period aforesaid by reason of any circumstance beyond
the control of the manufacturer or packer, as the case may be, extend the time
during which such packaging material may be used, and, where any such packaging
material is exhausted before the expiry of the month indicated thereon, the
packaging material intended to be used during the next succeeding month may be
used for pre- packing the concerned commodity;
(C) no
declaration as to the sale price shall be required to be made on –
(I)
any uncanned package of (a) vegetables, (b) fruits, (c) ice cream, (d) cheese,
(e) butter, (f) fish, (g) meat or (h) any other like commodity;
(ii)
any bottle containing liquid milk, liquid beverages containing milk as an
ingredient , soft drink, ready-to-serve fruit beverages, or the like, which is
returnable by the consumer for being refilled; (iii) any bottle containing
alcoholic beverages, or spirituous liquor;
(iv) any
package containing animal feed exceeding 15 kg or 15.1;
(v) any
package containing a commodity for which controlled price has been fixed by or
under any law for the time being in force. Explanation I. The month and the
year in which the commodity is pre-packed may be expressed either in words, or
by numerals indicating the month and the year, or by both. Explanation II.
Liquid milk does not include condensed milk. (2) Every dealer or other person
who makes a retail sale of any commodity in packaged form shall, where local
taxes have to be added to the price indicated on such package by the
manufacturer or the packer, display prominently at a conspicuous place of the
premises in which he carries on his retail sale, the rates at which local taxes
are leviable in respect of the commodities sold in packaged form." It is
contended that sub-rule(2) of Rule 6 alone was applicable in the case because
the goods in the form of Kodak films were being sold by the distributor and not
by the manufacturer. It is further contended that sub-rule(1) of Rule 6 is
applicable to the manufacturers alone. We are not satisfied with such
submission. Accepting such a plea would result in frustrating the provisions of
the 1986 Act and thereby encourage the retailers or distributors of foreign
made goods to charge prices according to their convenience without letting the
consumer know the actual price of the commodity. A perusal of Rule 6(1) of the
Rules clearly shows that the stress of the sub-rule is upon the package and not
upon the person manufacturing or selling the package. The provisions of
sub-rule (2) apparently appear to be in addition to the obligations cast upon
the manufacturer and the dealer under sub-rule (1) of Rule 6 of the Rules. We
are also not impressed with the argument of the learned counsel for the
appellant that before its amendment on 8-8-1986, Sub-rule (2) as it then stood cast
such an obligation to display the price but not thereafter.
By
amendment provisions of sub-rules (2) and (3) appears to have been incorporated
in sub-rule (2) only by deleting sub-rule (3). The superfluous and additional
words existing in sub-rule (2) before its amendment were rightly deleted in
view of the specific provisions of Chapter II comprising rule 3,4,5 and 6 as
noted herein earlier. The dealers are, therefore, obliged to comply with the
provisions of sub-rule (1) of Rule 6 of the Rules notwithstanding the confusion
if any conceived by them under Rule 6(2) before its amendment.
During
the course of the argument the learned counsel appearing for the respondent has
shown us some packages of the Kodak films wherein the maximum retail price
inclusive of all taxes has already been displayed. It is worth noticing that on
those packages a specific mention is made of "not for resale outside India." It appears that the product
of Kodak films, a multi-national company are being manufactured and distributed
in India, thus neither the manufacturer nor
the distributor or retailer can escape the liability of complying with the
provisions of Rule 6 of the Rules.
After
examining the matter from various aspects, we do not find any infirmity or
illegality in the order of the National Commission requiring interference. The
appeal is accordingly dismissed, but in the circumstances without any order as
to costs.
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