RATNAM ENGINEERS Vs. G.GANGA REDDY

JUDGEMENT

(1.) Challenge in this revision is to the order dated 19.12.2006 of A.P. State Consumer Disputes Redressal Commission, Hyderabad modifying in appeal the order dated 17.1.2004 of a District Forum and directing the petitioner/opposite party to pay Rs 1 lakh with interest @ 9% p.a. and cost. The District Forum had allowed the complaint with direction to the petitioner to refund the cost of Karshak Power Tiller of Rs. 1,54,550/ - with interest @ 9% p.a. , pay compensation of Rs 10,000/ - as also cost.

(2.) Respondent/complainant had purchased a Karshak Power Tiller from the petitioner on 9.9.1998 for a consideration of Rs. 1,54,550/ -. Respondent alleged that the power tiller was not cutting the crop. Though the power tiller was repaired still it did not work. Respondent had thus to engage labour for cutting the crop thereby incurring huge expenditure. Complaint seeking refund of the cost of power tiller with damages filed by the respondent was contested by the petitioner. Complaint and appeal were decided in the manner noticed above.

(3.) Order of State Commission has been challenged by Mrs. Radha Rao for the petitioner on the ground that the amount of compensation awarded and the rate of interest are on higher side. To be noted that the respondent has been permitted to retain the power tiller and instead of price thereof, amount of Rs. 1 lakh has been awarded by way of compensation. Since the power tiller in question was not put in working order by the petitioner, the State Commission had rightly awarded compensation of Rs. 1.00 lakhs to the respondent. However in the facts and circumstances of case, there was hardly any occasion to further award interest @ 9% p.a. from the date of payment. Part of the order awarding interest, therefore, deserves to be set aside being not sustainable