ACTION CONSTRUCTION EQUIPMENT LTD. SANTOSH VASANATRAO PEHEKAR, 5TH FLOOR, TDI CENTRE, JASOLA, NEW DELHI Vs. SANTOSH BABANRAO GANDE & ANR. R/O SATARA PARISAR, AURANGABAD MAHARASHTRA

JUDGEMENT

(1.) The petitioner company is the manufacturer of machines including Backhoe Loader. The respondent no.2 - Yashodhan Erectors Pvt. Ltd. was the authorised dealer for the sale of the aforesaid Loaders. An advertisement in a newspaper was inserted by the respondent no.2 - Yashodhan Erectors Pvt. Ltd. for sale of Backhoe Loader. Having seen the aforesaid advertisement, the complainant decided to purchase a Backhoe Loader, for a consideration of Rs.21 Lakhs. The said loader was to be partly financed by a loan from Shriram Transport Finance Ltd. A sum of Rs.13,82,982.00 was paid by the aforesaid financer and the balance amount was paid by the complainant. However, despite sanctioning the aforesaid payment, the machine was not delivered. Being aggrieved, the complainant approached the concerned District Forum by way of a complaint seeking refund of the money paid by him with interest and compensation. The petitioner company as well as Yashodhan Erectors Pvt. Ltd. were impleaded as the opposite parties in the said complaint.

(2.) The respondent no.2 did not resist the complaint. The petitioner however filed a reply contesting the complaint and inter-alia pleaded that in June 2012 when the payment was made by the complainants, the respondent no.2 was not its dealer, its dealership agreement having already been cancelled. It was further stated in the reply that though the amount of Rs.13,82,982.00 was deposited in their account by the financer, the said amount was later returned to the financer.

(3.) The District Forum vide its order dated 20.08.2014 directed the petitioner as well as the respondent no.2 to pay the aforesaid amount of Rs.7,47,018.00 to the complainant along with interest @ 12% p.a. w.e.f. 12.04.2012 when the first instalment of the margin money was paid. A sum of Rs.5,000.00 was awarded to the complainant towards compensation for the mental agony. Another sum of Rs.2500.00 was awarded to him towards the cost of litigation.