Ernakulum District Commission Holds Manufacturer Liable For Faulty Machine, Orders 1.5 Lakh Compensation

While holding J C Machinery liable for deficiency in service and unfair trade practices, the Consumer Commission directed the owner of J C Machinery to refund the broken machine's price along with other charges and compensation. While deciding the complaint, the bench also made an observation with respect to the 2019 Act, noting that the 2019 Consumer Protection Act adopts a more consumer-friendly approach. It emphasizes transparency and a shift from the traditional concept of "buyer beware" to "seller beware" for enhanced consumer protection.

Brief Facts

K G Rajan, a small-scale industry owner registered under the MSME scheme, bought a sheet separator machine from the J C Machinery (Opposite Party) to enhance business operations. The machine, as per the provided quotation, was supposed to have some specific features like individual pressure for sheet separation, digital sheet counter etc. However, upon delivery and installation, the machine broke down and lacked the promised features. Instead of a pneumatic machine, a mechanically operated one was supplied.

Despite, Rajan's requests for fixing the issues and providing a replacement, the opposite party did not take any action. As a result, he sent a notice to J C Machinery, but there was still no response or refund. Since Rajan was unable to use the defective machine, it caused a substantial loss of his income as well. As a result, he filed a consumer complaint, seeking a refund and compensation for the financial losses incurred due to the faulty machine.

Observations of the Commission

The Consumer Commission found that the supplied machine did not meet the specified features, leading to a breakdown upon installation. They noted that J C Machinery's refusal to rectify the defects, despite acknowledging them, was a clear violation of the complainant's rights and constituted a deficiency in their services.

With regard to the liability of the manufacturer, the bench observed that the Consumer Protection Act of 2019, in comparison to the previous act of 1986, represents a more consumer-friendly approach, aligning well with international consumer protection standards. It observed:

"The Act promotes transparency in transactions and holds sellers and endorsers accountable for their products moving away from the contract law principle of "Let the Buyer Beware " (caveat emptor) towards "Let the Seller Beware" (caveat venditor), indicating a progressive step in consumer protection."

Consequently, the Commission held J C Machinery responsible for failing to provide a machine with the promised features, causing significant losses to the complainant. The commission thereby directed J C Machinery (Opposite Party) to refund the machine's price i.e. Rs. 22,36,000/-, reimburse freight charges of Rs. 23,190/- and compensate the complainant with Rs. 1,50,000/- for the loss of income due to the faulty machine. Additionally, the opposite party was directed to pay Rs. 10,000/- as the cost of proceedings.

Case Title: KG Rajan, Proprietor, S R Packaging vs. Mr. Jerald Christopher, Proprietor. M/s JC Machinery

Counsel for the Complainant: Mr. Tom Joseph, Adv.

Counsel for the Opposite Party: Nil

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