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ashok kumar (Social Worker)     09 September 2015

Consumer case against company, notices to director

Consumer Case against Company, Notices to Director

An individual files a consumer Case for alleged deficiency in Services  (Services were of a Home Maid which was provided by an individual ). The notices are served on one of the Directors of the Company who provided the Lady on purely personal capacity. However the complainant also makes certain imputations against the Company but the Company is NOT MADE a party in the complaint. Due to this reason, the Individual Director is not in a position to reply regarding the imputations made against the company.

Can the Director make an application before the Forum requesting the Forum to instruct the Complainant to clarify whether the Company is also a Party? And if the Company is not a party then to return the complain for removing the imputations against the Company.

 



Learning

 12 Replies

advocatepassy@gmail.com 971794 (Advocate)     09 September 2015

Yes, unless the company has been made a Party, its Manager or Director cannot be made a party. The agreement to provide certain services to the consumer is between the company and the complainant.

Nitish Banka (lawyer)     09 September 2015

company should be made a party

Vishnu Sharma Adv 9716555911 (Advocate)     09 September 2015

Deficiency in services done by the company so the company should be the party

Advocate Bhartesh goyal (advocate)     09 September 2015

without imleading company as party ,complaint is not maintainable and deserves to be dismissed.

ashok kumar (Social Worker)     09 September 2015

In such a case what should teh respondent do?

Is he obliged to fiel a replY??

Or he must first raise preliminary objections??

Or he should file teh reply as well as Prelim objections simultaneously?

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     11 September 2015

Only a service provided for a consideration is covered under the Consumer Protection Act. Was any consideration paid? If so, to whom was it paid, to the Company or the individual? Was the consideration paid by cash or by cheque?  If paid by cheque, in whose name was the cheque made out? Was it in the name of the individual or the Company. If payment was made,  a receipt should have been obtained. Who issued the receipt, the Company or the individual? Any payment made to the Home Maid is not consideration for the purpose of the Act. Service given by the Home Maid is in the nature of personal service and she is not a  "Service Provider". The one in whose name cheque was made or the one who under one's name issued the receipt can be sued. It can be an individual or a Company. 

ashok kumar (Social Worker)     11 September 2015

Thanks Dr Ramani nfor such a systematic revert

I will clarify one by one

There was a consideration paid to defendent  but it was not for the service provided but it was specifically for the "referral" made. The complainant himself went to the house of the maid and took her to his house and finalized her. There was no role of the defendent in finalizing the maid. The maid was directly reporting to teh complainant and it was a direct Master-Sevant relationship between teh complainant and maid. 

The Police verification was filled by the compainant himself and in the Police verification form also the complainant shows himself as the employer. The consideration was paid in cash but the defendent admits it was paid for teh referral and not for teh services provided by teh maid. The payment to the made is also made  thru teh defendent but as an "agent" of complainant. 

I also feel that Service given by the Home Maid is in the nature of personal service more so when teh reuisition form has written onteh Top of it "CONTRACT OF PERSONAL SERVICES" tHE CASE IS FILED AGAINST TEH INDIVIDUAL BUT IN TEH COMPAINT IT IS MENTIONED THAT TEH INDIVIDUAL IS A dIRECTOR IN A cOMPANY named X and that this company issues ads for such services.

The  points to be considered are

1.Is the complaint maintainable and what is teh procedure of filing initial objections to frivolous complaints? As asked previously In such a case what should teh respondent do?Is  he obliged to file a replY Or he can first raise preliminary objections Or he should file teh reply as well as Prelim objections simultaneously?  In nutshell is there any procedure of filing objections or one is required to file a reply mandatorily?

2. Regarding teh paragraph related to teh Company no individual (even a Director) can file a reply without the mandate of teh Company. In such a case what to do since the Company has not been made a party

 

 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     12 September 2015

As I could understand the case is like this. There is a Company named X, which provides servants to give service of a personal nature to clients who want such services. The Company is a go-between for the client and the servant to the extent of locating the servant. The Defendant here is an individual who claims himself to be director of the Company. The Complainant approached the individual saying that he wanted a Home Maid. The Complaint paid cash for the ‘referral” and the individual provided the name and address of the Home Maid. Thereafter contacting the Home Maid, briefing her about the work to be done, fixing her salary applying for and doing police verification all complete was done by the Complainant. When the time for payment of salary came the Complainant paid the amount to the individual on the presumption that he would pay in turn to the Home Maid. Whether the individual pays the whole amount to the Home Maid or he makes a cut is not known to the Complainant, nor has it been conveyed to the Complainant. In any case the individual, the Company or both is a ‘service provider’ on two counts. At first he collects a fee to search for and identifying the person to be the Home Maid. Secondly the Complainant pays the amount of salary to the individual and not directly to the Maid. Here the individual is not the ‘agent’ of the Complainant. When Maid is directly in the service of the Complainant, why an agent is required to collect and pay to the Maid. The individual is service provider who is paid for the services rendered by the Home Maid. Now the question is “who was the ‘Service Provider’, the individual or the Company? There is some ambiguity here as neither any cheque was issued nor any receipts were given. Is the Company a proprietorship firm, a partnership firm or a Company under the Companies Act. If it is a proprietary firm the firm and the individual are one and the same. If it is a Partnership it would depend on the Partnership Deed if there is a written one or if it is an informal arrangement between partners the particular individual who represents the Company for the transaction. If it is a limited company one will have to go into the organization and delegation of powers. If there was a doubt as to whether the person in his individual capacity or as an officer of the Company rendered the service, the best thing would have been to name both of them as Opposite Parties. But that has not been done. Now wait for the reply. If the Opposite party has been wrongly named the complaint would not become frivolous for that reason.

ashok kumar (Social Worker)     12 September 2015

Thanks Dr MPS Ramani Sir

What a perfect & threadbare discussion!! Leaves nothing to be asked or clarified!

One thing has lawys made me wonde about you  Dr MPS Ramani Sir! Earlier also I have seen your discussions and alaysius of Legal Matters and I have found in them a complete treatment of teh subject matter

How that happens in view of teh Fact that U R an Emgoneer and not a Lawyer or from Legal Field?

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     13 September 2015

According to me law is a science. In science we use mathematics. In law one should use logic.

ashok kumar (Social Worker)     16 September 2015

What is the correct legal course?

Can the respondent file Initial/Preliminary Objections alone? Or he is mandatory required to file a reply & teh objection if any must be filed with the reply only?

ashok kumar (Social Worker)     16 September 2015

What is the correct legal course?

Can the respondent file Initial/Preliminary Objections alone? Or he is mandatory required to file a reply & teh objection if any must be filed with the reply only?


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