Supreme Court Dismisses Appeal Against NCDRC Order in Consumer Dispute Over Biochemistry Analyser Installation. Pre-Installation Requirements Including 1KVA Online UPS and Absence of On-Board Laundry Facility Not Found to Be Deficiency in Service or Restrictive Trade Practice.

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Case Note & Summary

The appellant, Dr. D. J. De Souza, placed an order for a TurboChem 100 Unit from the respondent, Managing Director CPC Diagnostics Pvt. Ltd., in August 2015 and paid Rs. 3,50,000 as 50% of the cost. The pre-installation requirements included an efficiently air-conditioned room, a 1KVA Online UPS, and a broadband connection. The equipment was delivered on 30.09.2015. The appellant's existing UPS was deemed unsuitable by the respondent's service engineer, who advised purchasing a 1KVA Online UPS. The appellant claimed that the manufacturer confirmed his UPS was suitable, but the respondent insisted on the specified UPS. Additionally, the appellant alleged that the instrument lacked an on-board laundry facility, rendering it useless. He sought refund of the amount paid with interest and damages. The District Consumer Forum dismissed the complaint, finding no commitment for on-board laundry. The State Commission and NCDRC upheld this decision, noting that the brochure did not mention on-board laundry and that the pre-installation requirements were clear. The Supreme Court dismissed the appeal, holding that the respondent's insistence on the 1KVA Online UPS was justified due to local electricity conditions, and the manufacturer's email did not override the pre-conditions. The court also found no deficiency in service or restrictive trade practice, as the on-board laundry facility was never promised. All forums under the Consumer Protection Act, 1986, had concurrently found no merit in the appellant's claims.

Headnote

A) Consumer Law - Deficiency in Service - Pre-Installation Requirements - The appellant purchased a TurboChem 100 Unit and paid 50% cost. The pre-installation conditions required a 1KVA Online UPS. The appellant's existing UPS was deemed unsuitable. The court held that the respondent's insistence on the specified UPS was not arbitrary as it was a pre-condition for installation, and the manufacturer's email did not override local electricity conditions. (Paras 3-10)

B) Consumer Law - Restrictive Trade Practice - On-Board Laundry Facility - The appellant claimed the instrument lacked an on-board laundry facility. The brochure did not mention such a feature. The court held that there was no commitment by the respondent to supply such a facility, and thus no restrictive trade practice was established. (Paras 5-10)

C) Consumer Law - Deficiency in Service - Malfunctioning or Manufacturing Defect - The appellant failed to establish any malfunctioning or manufacturing defect in the instrument. The NCDRC found no deficiency in service. The Supreme Court upheld the concurrent findings of the forums below. (Paras 6-11)

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Issue of Consideration

Whether the respondent's insistence on installation of 1KVA Online UPS and the absence of on-board laundry facility in the instrument constitute deficiency in service or restrictive trade practice under the Consumer Protection Act, 1986.

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Final Decision

The Supreme Court dismissed the appeals, upholding the orders of the NCDRC, State Commission, and District Forum. No deficiency in service or restrictive trade practice was found.

Law Points

  • Consumer Protection Act
  • 1986
  • deficiency in service
  • restrictive trade practice
  • pre-installation requirements
  • on-board laundry facility
  • 1KVA Online UPS
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Case Details

2019 LawText (SC) (4) 150

Civil Appeal Nos. 3351-3352 / 2019 (arising out of SLP (C) 8398-8399/2019, D. No. 44809 of 2018)

2019-04-01

Dr. Dhananjaya Y. Chandrachud, Hemant Gupta

Dr. D. J. De Souza

Managing Director CPC Diagnostics Pvt. Ltd.

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Nature of Litigation

Consumer dispute regarding purchase and installation of a biochemistry analyser.

Remedy Sought

Refund of Rs. 3,50,000 with 9% interest and damages of Rs. 50,000.

Filing Reason

Alleged deficiency in service and restrictive trade practice due to insistence on specific UPS and absence of on-board laundry facility.

Previous Decisions

District Consumer Forum dismissed complaint; State Commission dismissed appeal; NCDRC dismissed revision and review.

Issues

Whether the respondent's insistence on installation of 1KVA Online UPS constitutes deficiency in service or restrictive trade practice. Whether the absence of on-board laundry facility in the instrument amounts to deficiency in service or restrictive trade practice.

Submissions/Arguments

Appellant argued that the manufacturer confirmed his UPS was suitable, and the respondent's insistence on 1KVA Online UPS was arbitrary and a restrictive trade practice. Appellant argued that the instrument lacked on-board laundry facility, making it useless. Respondent contended that pre-installation requirements were clear and the brochure did not mention on-board laundry.

Ratio Decidendi

Pre-installation requirements, including the need for a 1KVA Online UPS, are binding conditions for installation. The manufacturer's email does not override local electricity conditions. The absence of a feature not promised in the brochure does not constitute deficiency in service or restrictive trade practice.

Judgment Excerpts

The pre-installation requisite as reproduced above clearly stipulates that the appellant has to provide: (i) Efficiently air-conditioned room (ii) 1KVA Online UPS for running of the equipment (iii) Broadband connection for 'i-track' (Remote Diagnostics Tool). In the brochure supplied to the appellant, there is no commitment of supply of instrument with on-board laundry facility. The email from the manufacturer will not override the pre-conditions of installation which are in view of electricity supply conditions in the country.

Procedural History

The appellant filed a complaint before the District Consumer Disputes Redressal Forum, South Goa, which was dismissed. An appeal to the Goa State Consumer Disputes Redressal Commission was dismissed on 08.07.2016. A revision before the National Consumer Disputes Redressal Commission was dismissed on 14.12.2017, and a review petition was dismissed on 04.10.2018. The appellant then filed special leave petitions in the Supreme Court, which were converted into civil appeals and dismissed on 01.04.2019.

Acts & Sections

  • Consumer Protection Act, 1986:
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