HCL OFFICE AUTOMATION LTD Vs. REJI K VARGHESE

JUDGEMENT

(1.) -This revision petition is filed against the order dated 19th September, 2000 of the Kerala State Commission in Appeal No. 694/98 confirming the order dated 31.8.1998 of Thiruvananthapuram District Forum wherein the complaint was allowed.

(2.) Brief facts of the case are: Shri Reji K. Varghese on behalf of Hotel Luciya Continental Thiruvananthapuram filed a complaint before the District Forum alleging that the said hotel placed an order with M/s. HCL Ltd. for the supply and installation of EPABX system in the hotel and that the system supplied was defective and ultimately stopped functioning from 9.5.1994. He, therefore, prayed that the opposite party be directed to replace the EPABX system and also claimed compensation of Rs. 5 lakhs. The District Forum held in favour of the complainant and ordered that EPABX should be replaced within a period of one month. In appeal, the order was confirmed by the State Commission.

(3.) In the revision petition filed before us, the petitioner HCL Limited took the plea that the entire contract between him and the respondent hotel was wrongly interpreted by the lower Fora and in fact the District Forum did not even have the pecuniary jurisdiction to decide this case. His case is that, the EPABX system was supplied on a hire purchase basis by an agreement dated 15.7.1991. According to the hire purchase agreement, the respondent was required to pay Rs. 60,000/- in advance and the rest in 36 monthly instalments of Rs. 23,425/-. The cost of the system was Rs. 6,18,000/- but under the hire purchase agreement the total amount to be paid by the respondent inclusive of interest works out to Rs. 8,43,200/-.