Regarding compensation for non performance of machinery
V V SATYANARAYANA
(Querist) 01 November 2008
This query is : Resolved
Sirs,
In the the year 2002 in June & August we have procured 3 cranes at a cost of Rs. 1 crore each from a reputed cranes manufacturing in India.
In August 2004 we have purchased one more crane from them. Right from the delivery of the equipment at the site, these machines have not been performing and persistently giving troube and we could not get desired production from these 4 equipments. Though the Seller was attending but never the problems were sorted out. If a defect is rectified again another defect would crop up like that.For rectifying these defects also we have spent lakhs of rupees on each of these 4 cranes. Made full payments to the Party except in one case where we have deducted very little towards non-performance (there is no legal dispute for this deducted amount).
Finally the Seller stopped manufacturer stopped the manufacture of these cranes from 2006 or 2007 that means there might be some design fault or so. We have made several correspondences by way of lodging complaints highlighting the problems right through.
Can we at this stage can write to them to compensate for the losses we have suffered or can we approach the Consumer Forum for the deficiency in service.
Is there any remedy available to us and whether we have lost the opportunity under Limitation Act.
Kindly give your opinion as to what best we can do for redressal.
Thanking you,
V.V.Satyanarayana
Manish Singh
(Expert) 01 November 2008
since the goods were purchased for business purpose, you are not consumer under the Con Prot act. go for civil suits.
V V SATYANARAYANA
(Querist) 03 November 2008
Sir,
Thank you.
Kindly guide me what remedy is available under civil suits and how to proceed ?
Srinivas.B.S.S.T
(Expert) 06 November 2008
You can file a civil suit for recovery of expenses you have incurred for the repairs and also claim estimated profits in case these machines functioned properly. The limitation is 3 years from the date when the last cause of action arose.
Now coming to approaching the consumer forum as Manish Ji rightly opined if you have purchsed the machines for business purpose you cannot approach consumer forum.
A recent judgment was passed by State Commission, Mumbai in the case of Chairman BPL Engineering Ltd Vs Hanumant Narayan Shendkar held that " Where LCD projector to run mini theatre was purchsed to earn livlihood by self employment, purchaser consumer was entitled to maintain consumer complaint concerning that equipment".
Please try to furnish fuller details about the matter such as have you insured those machines with the insurer or not and had the manufacturing company in any of their correspondence admitted that the problems might be due to fault in the engine or design, as such. Regards Srinivas BSST
V V SATYANARAYANA
(Querist) 10 November 2008
Thank you Sir,
What date we should consider as arisal of last cause of action
a) date of installation August'2004
b) payment of the machinery in Sept.'2004
c) expiry of 2 years warranty August'2006
d) general complaint re. non-performance/breakdown in December'2007 (latest letter).
We have not insured for performance, it was insured against fire insurance.
Manufacturer in none of the letters accepted about the fault of design/engine.
In fact, the manufacturer was complaining that we have not maintained the machines properly and the machines were working in dusty conditions and maintenance standard was poor from our side.
Kindly guide further.
Regards,
V.V.Satyanarayana
V V SATYANARAYANA
(Querist) 13 November 2008
Sir,
Kindly respond if any additional information is required please.
B.B.R.Goud.
(Expert) 23 February 2009
you can approch the court, on the deficiency of service by initiating the consumer protection act, on the cheating by initiating the I P C , and claim for the compensation.
