NIZAMUDDIN BUILDING CENTRE Vs. SURYA POWER GENSETS

JUDGEMENT

(1.) Briefly, the facts of the case are that the applicant placed an order on the respondent on 19.8.1997 for the supply of a Kirloskar Genset of 62.5 K. V. A. The applicant paid an advance of Rs.1.00 lakh and asked the respondent to ensure the supply of Genset within one week from the date of the letter i. e. , 19.8.1997. The applicant's contention is that the respondent failed to fulfil its obligation to supply the Genset within the stipulated period of one week and even thereafter till the date of filing of this petition i. e. , 23.9.1997. It is further stated that protracted correspondence and reminders issued to the respondent yielded no fruitful results and therefore, the applicant had to hire a Genset on rental basis @ Rs.1,000/- per day, which caused financial loss to the applicant. Thus aggrieved, the applicant has approached the Monopolies and Restrictive Trade Practices Commission under Sec.12b of the Monopolies and Restrictive Trade Practices Act, 1969 (the MRTP Act - in short) for grant of compensation @ Rs.1,000/- per day from 26.8.1997 till the date of installation and commissioning of the Genset. The applicant has also claimed compensation @ Rs.350/- per day for extra consumption of fuel due to hiring of Genset of ordinary make.

(2.) By way of interim relief, the Commission vide its order dated 4.12.1997 directed to the respondent to supply, instal and commission the Genset at the site of the applicant's project on payment of Rs.1.80 lakhs in addition to the advance of Rs.1.00 lakh already paid to the respondent. This order was passed without any prejudice to the contention of the respondent regarding the actual cost of the Genset.

(3.) In its reply, the respondent has denied the allegations of restrictive/unfair trade practices and has stated that the delivery of the Genset was to be made within one month and not one week as claimed by the applicant. While giving the rationale behind the delivery period of one month, the respondent has stated that it takes about one month for the Genset to reach Delhi from the respondent's godown at Silvasa, Union Territory of Dadar and Nagar Haveli. It is also stated in the reply that the applicant cancelled the order for the supply of the Genset on 10.9.1997. The respondent has also contested the actual price of the Genset and has stated that the price of Rs.2.80 lakhs cited by the applicant was exclusive of excise and other levies on account of which the total price of the Genset gets raised to Rs.3.20 lakhs. It is also stated that the applicant had confirmed the price of the Genset as Rs.3.20 lakhs in its letters dated 20.9.1997 and 22.9.1997. It is further submitted that the respondent had informed the applicant vide its letters dated 11.9.1997, 15.9.1997 and 19.9.1997 that the Genset was ready for delivery subject to payment of the balance amount of Rs.2.20 lakhs. It has been claimed that the applicant agreed to pay the balance amount of Rs.2.20 lakhs but subject to prior commissioning of the Genset and adjustment of losses on account of alleged delay in the supply of the Genset. In its reply, the respondent also claims to have incurred additional expenditure on the payment of demurrage charges @ Rs.600/- per day.