Haryana

Karnal

CC/363/2022

Hindustan A.D.V Axle Company - Complainant(s)

Versus

Shri Balaji Trading Company (Mayapuri) - Opp.Party(s)

Vishal Goel

15 Oct 2024

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

 

                                                        Complaint No. 363 of 2022

                                                        Date of instt.28.06.2022

                                                        Date of Decision: 15.10.2024

 

 

Hindustan A.D.V. Axle Company, plot no.154-155, Vikas Colony, Backside Dheeraj Hawai Chappal, Ranwar Road, Karnal through its proprietor Payal Malhotra wife of Shri Rohit Malhotra.

 

                                                                        …….Complainant.                                             Versus

 

1. Shri Balaji Trading Company (Mayapuri), shop no.4, B-64, Ground Floor Mayapuri Industrial Area, Phase-2, Delhi, through its proprietor Shri Deepak Bansal.
2. Deepak Bansal, proprietor Shri Balaji Trading Company (Mayapuri), shop no.4, B-64, Ground floor Mayapuri Industrial Area, Phase-2, Delhi.

                                                                 …..Opposite Parties.

 

Complaint under Section 35 of Consumer Protection Act, 2019.

 

 

Before   Shri Jaswant Singh……President.

              Mrs.Neeru Agarwal….President       

      Mrs. Sarvjeet Kaur…..Member

 

 Argued by: Shri Vishal Goyal, counsel for the complainant.

                    OPs  exparte (vide order dated 04.05.2023)

               

                     (Jaswant Singh, President)

 

ORDER:  

 

               The complainant has filed the present complaint under Section 35 of the Consumer Protection Act, 2019 against the opposite parties (hereinafter referred to as ‘OPs’) on the averments that complainant is proprietor of Hindustan A.D.V. Axle Company, Karnal which deals in manufacturing and sale of Agricultural Implements. OP no.2 is the proprietor of OP no.1 i.e. Shri Balaji Trading Company, Delhi and the person incharge and responsible for the functions and affairs of the firm. OPs being doing the business of trading of bearings and complainant used to purchase bearings from the OPs for the purpose to installing the same in the Axle of Trolley manufactured by complainant, so the OPs were having dealing with complainant. The complainant is purchasing goods from OPs and same is for the purpose of earning livelihood by means of self-employment. The complainant purchased Bearings from the OPs, vide twelve bills for a total amount of Rs.28,74,682/- including IGST from 07.07.2021 to 03.02.2022 and complainant made payment of Rs.13,56,894/- through RTGS. After purchasing bearings from the OPs, the complainant used to fit the same in the axle of trolley manufactured by it and sold the same to its customers, to earn their livelihood. In the month of November, 2021 when the ripening season of sugarcane came and customers of complainant started using the axle trolley hub sold by complainant for the transportation of sugarcane from one place to other, then due to the poor quality of bearings manufactured by the OPs, fitted by complainant in the axle of trolley sold to its customers, split into pieces or crushed into pieces and got damaged. The problem of bearings was brought to the knowledge of complainant by its customers. The bearings sold by the OPs were not of good quality. After complaint of the customers the complainant brought to the knowledge of OPs the said fact and due to quality issue, complainant returned bearings for an amount of Rs.1,00,961/- purchased from the OPs, vide invoice no.GST/21-22/1062, E-way bill no.301396549882 dated 30.12.2021 to OPs. On the several requests of complainant, OPs agreed to compensate the loss suffered by complainant and assured that in future they will supply bearings of good quality to complainant. OPs further assured complainant that they will issue credit note in favour of complainant regarding bearings sold to complainant. On 03.02.2022, complainant again purchased bearings from OPs and this time OPs assured complainant that he will not face any problem regarding the quality of the bearings but this time also OPs again sent the bearings of poor quality. Complainant visited the OPs and complained about the poor quality of bearings. The OPs visited the godown of complainant and observed the poor quality of bearings. The OPs issued a credit note only regarding three bills to complainant for an amount of Rs.6,50,000/- dated 10.02.2022. The issuance of credit note proves that the OPs themselves were not satisfied with the quality of bearings.

2.             It is further alleged that due to poor quality of bearings, the Axle, Hub, Bering Seat, Nut bolt of the axle of trolley had broken down and the axle of trolley became useless. Complainant is having goodwill in the market and very good reputation. To save his goodwill and repudiation, complainant had paid damages to its dealer and compensated his customers by supply them axle of trolley having bearings of good quality. The complainant had paid or adjusted an amount of Rs.51,43,610/- for paying to its customers on account of damages suffered by them. The cost of scrap comes to Rs.8,61,731/- and after deducting the amount of scrap from the amount paid by the complainant to its customers, the net loss comes to Rs.42,77,879/-. Complainant purchased bearings vide different bills from the OPs and made part payment to the OPs and the details of purchase amount and paid amount is as under:-

Total bearing purchase for an amount of                  Rs.28,74,682/-

Payment made by the complainant through RTGS   Rs.13,56,894/-

Due amount                                                       Rs.15,17,788/-

Amount of goods returned                                     Rs.  1,00,961/-

Due amount after return of goods                           Rs.14,16,827/-

Credit note issued in favour of complainant              Rs.6,50,000/-

Balance                                                             Rs.7,66,827/-

The complainant has not used the bearings for an amount of Rs.2,09,969/- and the OPs assured the complainant to return the amount of Rs.2,09,969/- and complainant also assured the OPs that after credit of the amount of Rs.2,09,969/- in his account, the complainant will return the bearings to the OPs. The complainant has spent an amount of Rs.42,77,879/- on the repairing of trolley axle or by issuing credit note to its customer. After deducting the balance amount from the amount spent by complainant to its customers, the loss and damaged suffered by complainant comes to Rs.35,11,052/- to complainant alongwith interest @ 18% per annum which is paid by complainant to its customers for the loss suffered by them due to the defective bearings sold by the OPs. The OPs are having one cheque for an amount of Rs.3,00,000/-, which the complainant had issued in favour of OPs as security. The complainant requested the OPs to return the security cheque but OPs delayed the matter on one pretext or the other and had not returned the cheque to complainant. Due to defective and low quality bearings sold by the OPs, the complainant suffered loss to the tune of Rs.35,11,052/- which the OPs are liable to pay to complainant but on several requests of complainant, they failed to compensate the complainant. Then complainant sent a legal notice dated 21.03.2022 to the OPs but it also did not yield any result.  In this way there is deficiency in service and unfair trade practice on the part of the OPs. Hence this complaint.

3.             On notice, OPs did not appear despite service and opted to be proceeded against exparte, vide order dated 04.05.2023 of the Commission.

4.             Parties then led their respective evidence.

5.             Learned counsel for the complainant has tendered into evidence affidavit of complainant Ex.CW1/A, copies of bills and e-way bills Ex.C1 to Ex.C26,, copy of builty Ex.C27, copy of ledger account Ex.c28 to Ex.C42, copy of legal notice Ex.C43, postal receipts Ex.C44 and Ex.C45, acknowledgements Ex.C46 & Ex.C47 and closed the evidence on 16.10.2023 by suffering separate statement.

6.             In additional evidence, learned counsel for complainant tendered into evidence letter head and affidavit regarding issue of credit note Ex.C48 to Ex.C61 and copy of complaints by dealers Ex.C62 to Ex.C71 and closed the same by suffering separate statement. 

7.             We have heard the learned counsel for the complainant and have gone through the record available on the file carefully.

8.             Learned counsel for the complainant, while reiterating the contents of complaint, has vehemently argued that complainant is proprietor of Hindustan A.D.V. Axle Company and deals in manufacturing and sale of Agriculture equipments. The complainant purchased Bearings from the OPs, vide twelve bills for a total amount of Rs.28,74,682/- from 07.07.2021 to 03.02.2022 and made payment of Rs.13,56,894/- through RTGS. Complainant used to fit the same in the axle of trolley manufactured by him and sold the same to its customers, to earn her livelihood. In the month of November, 2021 when the customers of complainant started using the axle trolley hub then due to the poor quality of bearings the bearings split into pieces or crushed into pieces and got damaged. The bearings sold by the OPs were not of good quality. The matter was brought to the knowledge of OPs and complainant returned the bearings for an amount of Rs.1,00,961/- to the OPs. On the several requests of complainant, OPs agreed to compensate the loss suffered by complainant and assured that now they will supply the good quality bearings. On the assurance of OPs on 03.02.2022, complainant again purchased the bearings from OPs but this time also the quality of the bearings was of poor quality. The OPs issued a credit note only regarding three bills to complainant for an amount of Rs.6,50,000/- dated 10.02.2022. The issuance of credit note proves that the OPs themselves were not satisfied with the quality of bearings. Due to poor quality of bearings, the Axle, Hub, Bearing Seat, Nut bolt of the axle of trolley had broken down and the axle of trolley became useless. The complainant had paid or adjusted an amount of Rs.51,43,610/- for paying to its customers on account of damages suffered by them. The loss suffered by complainant due to the defective bearings sold by the OPs. The complainant requested the OPs to compensate the complainant but OPs did not hear the request of the complainant and flatly refused to do so and lastly prayed for allowing the complaint.

9.             The onus to prove its version was relied upon the complainant. To prove its version, complainant relied upon the documents copies of bills and e-way bills Ex.C1 to Ex.C26, copy of builty Ex.C27, copy of ledger account Ex.C28 to Ex.C42, copy of legal notice Ex.C43, postal receipts Ex.C44 and Ex.C45, acknowledgements Ex.C46 and Ex.C47. From the said bills it has been proved that the complainant has purchased the bearings from the OPs and due to inferior quality of bearings, the complainant sent a legal notice to the OPs for compensating it.

10.           In order to ascertain the fact that the due to inferior quality of bearings sold by the OPs to the complainant, the complainant had issued credit notes to its customers, the complainant placed on file letter heads of Kiran Udyog, S.K. Road, Ladwa Ex.C48, letter head of Ganda Singh Wasakha Singh Ex.C49, letter head of Nirmal Engineering Works Ex.C50 and affidavits/letter head of twenty other firms Ex.C51 to Ex.C71, wherein the proprietors of the said firms had specifically stated that the axle purchased from the Hindustan ADV Axle Company (complainant) have been broken due to inferior quality of bearings and in order to compensate them the Hindustan ADV Axle Company (complainant) has issued them credit notes.

11.           To rebut the evidence produced by the complainant, OPs did not appear despite service and opted to be proceeded against exparte. Thus, the evidence produced by the complainant is unchallenged and unrebutted and there is no reason to disbelieve the same. Hence, the case of the complainant is well proved.

12.          The complainant has claimed an amount of Rs.35,11,052/- after deducting an amount of Rs.7,66,827/- (balance amount which was to be paid by the complainant to the OPs as cost of bearings).

13.           From the bills Ex.C1 to Ex.C26 it has been proved that the complainant had purchased bearings to the tune of Rs.28,74,682/- and out of them, the complainant made payment of Rs.13,56,894/- through RTGS. Admittedly, Rs.1,00,961/- has been returned by the OPs to the complainant and also gave a credit note to the tune of Rs.6,50,000/-, thus, the balance amount of Rs.7,66,827/- become due to be paid by the complainant to the OPs. In order to prove the fact that she has paid an amount of Rs.42,77,879/- to its customers, the complainant has placed on file letterheads/affidavits of proprietors of twenty firms wherein they submitted that due to inferior quality of bearings their axles have been broken and the complainant issued them credit notes of the amount of loss suffered by them, thus, it has been proved on the file that OPs have supplied the inferior quality of bearings to the complainant and had not replaced the inferior quality bearings nor refund the cost of the same. Hence, the act of the OPs amounts to deficiency in service and unfair trade practice.  

14.           Thus, as a sequel to abovesaid discussion, we allow the present complaint and direct the OPs to pay Rs.35,11,052/- to the complainant company. We further direct the OPs to pay Rs.50,000/- to the complainant on account of mental agony and harassment and Rs.22,000/- towards the litigation expenses.  The complainant is also directed to handover the defective bearings to the OPs. This order shall be complied with within 45 days from the receipt of copy of this order. It is made clear that if the order is not complied within the stipulated period, then the awarded amount shall carry interest @ 9% per annum from the date of order till its realization. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Announced
Dated: 15.10.2024 

  President,       

           District Consumer Disputes                          

Redressal Commission, Karnal.

 

(Neeru Agarwal)              (Sarvjeet Kaur)

    Member                             Member