You are on page 1of 26

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 best Laptops 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 1 Basis of Distinction Essential vs. condition It is a warranty It is stipulation

Collateral

stipulation which is essential to the main purpose of the contract The aggrieved party can terminate the contract

which is only collateral to the main purpose of the contract The aggrieved party can claim damages but cannot terminate contract A breach of warranty cannot be treated as breach of condition.

2

Right in case of Breach

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

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 any condition by the seller can only be treated as breach of

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 by a 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 • • • • 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)] • •

IMPLIED WARRANTIES 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)]

• • •

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.

(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

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

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)]. 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
1.

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

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 even though 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

the buyer without reserving the right of disposal of the goods. [Section 49(1)(a)] • When the buyer or his agent lawfully obtains possession of the goods[section 49(1)(b)] • When the seller waives his right of lien[section 49(1)(c)]

Right of stoppage of goods in Transit The right of stoppage in transit means the right of stopping the goods while they are in transit, to regain possession and to retain them till the full price is paid. “The essential feature of stoppage in transit is that goods should be in the possession of a middleman or some other person intervening between the vendor who has parted with and the purchaser who has not received them.”

Conditions under which right of stoppage in Transit can be exercised [section 50]. The unpaid seller can exercise the right of stoppage in Transit only if the following conditions are fulfilled.

• 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 Possession of goods Right of lien The goods must be in actual possession of the seller Right of stoppage in Transit The goods must be in the possession of a carrier or other bailee who is acting as an independent person

solvency

The right can be This right can be exercised even exercised only when the buyer is when the buyer

solvent but refuses to pay the price End vs. commencement on delivery to carrier purpose This right comes to an end when the seller delivers the goods to a carrier The purpose of right is to retain possession of the goods This right can be exercised by the seller himself

has become insolvent This right commences only when the seller delivers the goods to a carrier The purpose of this right is to regain the possession of the goods The right can be exercised by the seller through the carrier or the other bailee

Mode of exercising the right

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.

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 nonpayment 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 his hands; (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

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 customer’s cheque A bank must refuse to honour a customer’s 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 customer’s 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 of loss of cheque from his customer.

(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 a customer’s cheque: A banker may refuse to honour a customer’s cheque in the following cases:
(a) Insufficient

funds: when funds in the customer’s account are insufficient to honour the cheque presented. (b)Funds not applicable: when funds in the customer’s 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 before the 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.

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@

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.

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 of performance. 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
1.

Where time is not the essence of a contract No

Whether the

yes

contract becomes voidable at the option of the promisee 2. Whether the promise is entitled to claim the compensation for any loss occasioned to him by the nonperformance of the promise at the stipulated time (1)Where the performanc e beyond the stipulated time is not accepted

Yes

Yes

(2)Where performanc e beyond the stipulated time is accepted

NO, Unless the promise gives notice to the promisor of his

No, Unless the promise gives

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 enforcement of 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.

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

to do, the court may issue an order prohibiting him from doing so. Example: W agreed to sing at L’s 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 for promotion and protection of the rights of the consumers. The first and the only Act of its kind in India, it has enabled ordinary consumers to secure less expensive and often speedy redressal of their grievances. By spelling out the rights and remedies of the consumers in a market so far dominated by organized manufacturers and traders of goods and providers of various types of services, the Act makes the dictum, caveat emptor (‘buyer beware’) a thing of the past. The Act mandates establishment of Consumer Protection Councils at the Centre as well as in each State and District, with a view to promoting consumer awareness.

The Central Council is headed by Minster, In-charge of the Department of Consumer Affairs in the Central Government and the State Councils by the Minister In-charge of the Consumer Affairs in the State Governments. It also provides for a 3tier structure of the National and State Commissions and District Forums for speedy resolution of consumer disputes. To provide inexpensive, speedy and summary redressal of consumer disputes, quasi-judicial bodies have been set up in each District and State and at the National level, called the District Forums, the State Consumer Disputes Redressal Commissions and the National Consumer Disputes Redressal Commission respectively. At present, there are 629 District Forums and 35 State Commissions with 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 person who is or has been a Judge of High Court. The National Commission was constituted in the year 1988. It is headed by a sitting or retired Judge of the Supreme Court of India. The National Commission is presently headed by Hon’ble Mr. Justice Ashok Bhan, former Judge of the Supreme Court of India as President and has seven Members, viz. Hon’ble Mr. Anupam Dasgupta, Hon’ble Mr. S. K. Naik, Hon’ble 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 are those which are manufactured or produced and sold to consumers through wholesalers 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 for pecuniary value of upto Rupees twenty lakh, State Commission for value upto Rupees 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 of any description and the illustrations given above are only indicative. However, no complaint 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. In the complaint/appeal/petition submitted under the Act, a consumer is not required to pay any court fees but only a nominal fee. Consumer Fora proceedings are summary in nature. The endeavor is made to 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 disposal of cases.

If a consumer is not satisfied by the decision of a District Forum, he can appeal to the State Commission. Against the order of the State Commission a consumer 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 administrative control over all the State Commissions by calling for periodical returns regarding the institution, disposal and pendency of cases. The National Commission is empowered to issue instructions regarding (1) adoption of uniform procedure in the hearing of the matters, (2) prior service of copies of documents produced by one party to the opposite parties, (3) speedy grant of copies of documents, and (4) generally over-seeing the functioning of the State Commissions and the District Forums to ensure that the objects and purposes of the Act are best served, without interfering 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.

1986-2004 CONSUMER 6979(NS) NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION , NEW DELHI President: Hon’ble Mr. Justice D.P.Wadhwa Members: Honble Mr. Justice J.K. Mehra, Mrs Rajayakashmi rao and Mr. B.K. Taimi Shravan Kumar Tiwari and another Petitioners

Versus M/s Eicher Tractors Ltd and another Respondents

Revision Petition No. 178 of 2002 Decided on 25th January, 2002 Consumer Protection Act, 1986—Section 21(b)—revision —Tractor—alleged manufacturing defect—complaint filed after 10 years of purchase of tractor—held state commission rightly dismissed the complaint.

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

ORDER

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 partiesrespondents, the order of the District forum was set aside and the Complaint dismissed.

1.

2.

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. 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,set aside 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

clause(b) of section 21 of the Consumer protection Act,1986. This revision petition is dismissed. Revision dismissed

References:

http://ncdrc.nic.in/ 2. Business Laws
1.