RATNAKAR BANK LTD Vs. NELITON SYSTEMS LTD

JUDGEMENT

(1.) This consumer complaint relates to supply of hardware and software as well as their installation at Sangli branch of the complainant under their computerization scheme. For this purpose, complainant entered into an agreement with the National Radio and Electronics Co. Ltd. (Known as NELCO). The work was to be executed in three phases. Softwares to be supplied (i.e. automation solution) was known as CIBEX. This software was already installed and tested at other branch of the complainant at Thane. Total cost of the project was Rs.15,25,000/-. Agreement was accordingly executed in the beginning of the year 1994 as reflected from the correspondence placed on record. First of such correspondence is dated May 27, 1994, which is a letter from NELCO to the Branch Manager of Sangli branch of the complainant.

(2.) Initially there was a complaint about working of the hardware supplied, namely, UPS and on the count that all the Nodes were not working at a time. This has been reflected from the notice dated 20/2/1995 sent by the complainant to NELCO through its Advocate Mr.Dilip J. Mangsule. It is further reflected from the correspondence placed on record that when the automisation of the branch was undertaken and before it was completed, the workload of transaction of the said particular branch increased and it required certain upgradation of the system to which the complainant bank agreed as per its letter dated 5/9/1995 at the cost of Rs.1,15,000/-. However, the project did not work through properly. Complainant had a grievance which ultimately led to file this consumer complaint by the end of December 1998 or early of the year 1999.

(3.) In the Complaint, inter-alia, it is alleged that there is basic defect in the entire work of the installation of computers and therefore, with any amount of corrective methods that has been adopted by the O.P. it cannot be set right, since the system is microscopic. Complainant was not aware of the niceties and intrinsic working of the computer system and therefore, complainant bonafidely and in good faith believed in the suggestion made by O.P. that the said system badly installed could not be saved but for upgradation of the same and for that made additional demand of Rs.1,15,000/-. Complainant bonafidely believed the suggestion and accordingly, an amount of Rs.1,15,000/- was paid to the O.P. But even thereafter the system has not shown any improvement and remains as defective as it was originally.