PREMIER ENGINEERS Vs. TAJ RUBBER INDUSTRIES

JUDGEMENT

(1.) This appeal by grant of leave is directed against the order dated 16-5-1997 passed by the Monopolies and Restrictive Trade Practices Commission (for short "the MRTP Commission") in Compensation Application No. 53 of 1993 wherein it has allowed the application for compensation under Section 12-B of the Monopolies and Restrictive Trade Practices Act, 1969 (for short "the MRTP Act") filed by the Respondent No. 1 and has directed the appellant to refund to the first respondent a sum of Rs. 1,04, 164/- with interest @ 18% per annum plus compensation of Rs. 5,000/-.

(2.) Shortly stated the facts are : M/s. N. A. Rubber Industries through its partner Shri Nasiruddin, a partner of the applicant firm - respondent as well, placed an order in December, 1980 for the supply of one rubber mixing machine of size 14" x 36". Appellant agreed to supply the said Mchine to the respodnent by its letter dated 10-12-1980. In terms of acceptance, the appellant ws to supply the said machine for Rs. 55,000/- ex-factory price by May 1981 and the respondent was to supply certain input components like electric motor, reduction gear box and fluid coupling to be fitted to the machine by the appellant as these input components were not manufactured by the appellant. Respondent paid a sum of Rs. 2,000/- for which a receipt was given by the appellant. Later on a sum of Rs. 5,000/- was also paid by the respondent on 16-3-1981. N. A. Rubber Industries was closed and thereafter respondent firm M/s. Taj Rubber Industries was started in its place. On 21-2-1985 the appellant informed the respondent that the machine would be ready and supplied within a week. The respondent thereafter paid Rs. 50,000/- in May 1985 and approached the appellant for taking delivery of the machine. Due to certain reasons which were accepted by both the parties the machine could not be supplied till May 1990. Ultimately, the machine was supplied in the month of October, 1990. According to the respondent the aggregate amount of Rs. 80, 184/- was paid by it to the appellant. It was alleged that the respondent had paid Rs. 23,980/- for procuring and supplying the electric motor, fluid coupling, reduction gear box etc.

(3.) Respondent filed an application under Section 12-B of the MRTP Act against the appellant alleging therein that the machine supplied after a considerable delay and it was defective, non-working and old-second hand machine. It was fitted with old and second hand parts and it has failed to fit the "Oil system" and thereby appellant has indulged in unfair trade practice under Section 36-A(1) of the MRTP Act.