Dear Experts
we are doing agrochemicals business .we sell goods to our appointed dealers,one of dealer now denies to pay dues.on the contrary he is threatening to company that due to companies product he has suffering huge loss. because customers was not happy about quality and refused to pay him that is why he is also not willing to pay companies due.and he will file case against company on 420.and claim compensation also.company did lot of business in same area and collects dues from other dealers.but this single guy is complaining like th
is can anyone guide us in this regard
Sir/Madam
Assuming that a non-exclusive distributorship agreement exists between you & accused supplier/distributor, he really cannot sue you for damages suffered, as he is not the sole distributor of the company's goods. Further, assuming that the goods had undergone stringent checks by the company, no liability exists ex parte you for deficiencies in services rendered. If the consumer has a specific grievance, he may elect to approach the company directly, rather than its authorized dealer. Please understand that per Section 16 (1) of Sale of Goods Act, once a (potential) purchaser makes known to the seller, the purpose of the goods sought to be bought, an implied covenant arises on part of the dealer to supply the said goods/products after ensuring that they are excellent in quality & fit for usage. The dealer cannot sue the company that easily, unless it is proved that some special damages have been suffered by the dealer in consequence.
For further queries you may contact me at: basu_kunal@hotmail.com. I will be more than happy to advise you on your legal issue.
Regards
Advocate Kaybee
