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Punjab Water Supply & Sewerage Board v. Udaipur Cement Works

Supreme Court of India · 13 November 1995

Court
Supreme Court of India
Decided
13 November 1995
Case no.
C.A. No. 3626 of 1995
Bench
Kuldip Singh (J)
Length
2 pages
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PETITIONER:
PUNJAB WATER SUPPLY & SEWAGE BOARD
Vs.
RESPONDENT:
M/S. UDAIPUR CEMENT WORKS AND ANOTHER
DATE OF JUDGMENT13/11/1995
BENCH:
KULDIP SINGH (J)
AHMAD SAGHIR S. (J)
CITATION:
1996 AIR 537 1995 SCC Supl. (4) 117
1995 SCALE (6)327

ACT

HEADNOTE

JUDGMENT

ORDER

Punjab Water Supply and Sewage Board, Chandigarh (the Board) filed a complaint before the Consumer Disputes Redressal Commission, U.T. Chandigarh (Commission) against M/s. Udaipur Cement Works, Udaipur, Rajasthan (the cement works), alleging, inter alia, deficiency in service in the supply of cement for which confirmed orders were placed by the Board. The Commission allowed the complaint and awarded 12% interest to the Board for the period during which the amount of deposit remained with the cement works. The National Consumer Disputes Redressal Commission (the National Commission) by the order dated September 27, 1994 reversed the order of the Commission and dismissed the complaint of the Board. This appeal by way of special leave is against the order of the National Commission.

The Commission noticed the admitted facts, which emerged from the pleadings of the parties, in the following words:

"Certain undisputed facts emerge in this

case. The salient ones are that the

complainant placed an order for the

supply of cement with the respondent

firm and for this purpose, an amount of

Rs.23,62,900/- was remitted to the

respondent firm and by means of three o

Bank Drafts. According to the order as

confirmed, 2500 M.T. Cement had to be

supplied on or before 7.3.1988. There is

also no controversy about the fact that

the goods in question were delivered to

the complainant in November, 1990 and

that too at the higher rate and not at

the original rate as agreed to at the

time of placing the order. In the wake

of these undisputed facts, the points

raised in defence on behalf of the

respondent firm may be considered."

The National Commission allowed the appeal of the cement works and set aside the order of the Commission by a short order which is reproduced hereunder:

"In our opinion the counsel appearing

for the Appellant is well founded in his

submission that there was no arrangment

of hiring of service at all between the

parties in this case since the

transaction is one of sale and purchase

simplicitor namely the sale and purchase

of a specified quantity of cement which

was to be supplied by the Appellant

herein to the Respondent. In these

cumstances no question of deficiency in

ervice can arise so as to entitle the

complainant to invoke the jurisdiction

of the Consumer Forum when there was no

case at all of any defect in the goods

supplied. Unfortunately, this important

aspect of the case was lost sight of by

the State Commission and it proceeded to

grant relief to the Complainant on the

ground that delay in the supply of

cement constituted deficiency in

service. We hold that the said Order of

the State Commission is clearly illegal

and without jurisdiction and is hereby

set aside. The Complainant will be at

liberty to pursue whatever other

remedies are open to him in law."

We do not appreciate the blanket observation of the National Commission to the effect that where the transaction is one of sale and purchase simplicitor "no question of deficiency in service can arise so as to entitle the complainant to invoke the jurisdiction of the Consumer Forum when there was no case at all of any defect in the goods supplied". The impugned order of the National Commission is rather mechanical. Learned counsel for the parties have invited our attention to Section 2 (c), (d), (f), (g), (o) and various other provisions of the Consumer Protection Act, 1986 (the Act). The National Commission, in our view, should have appreciated the pleadings of the parties in the light of various provisions of the Act.

We allow the appeal, set aside the impugned order of the National Commission and remand the case to the National Commission to hear the appeal against the order of the Commission afresh after affording opportunity to the parties. It will be open to the parties to raise relevant questions of law and fact before the National Commission. No costs.

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