CONSUMER PROTECTION COUNCIL vs LOHIA MACHINES LTD

THE Complainant is a registered Consumers'' Association who has filed this complaint on behalf of various consumers who have deposited Rs. 500/- each as booking deposit for purchasing scooter manufactured by M/s. Lohia Machines, Ltd., of Kanpur. THE complainant has also annexed the Lists showing particulars of Ahmedabad city depositors and/or buyers who have deposited the initial amount of Rs. 500/- along with receipt number, allotment number, cancellation dates and reply, if any, received by such buyer from Opposite Party No. 1. THE Complainant has also given a further list of persons who have booked scooters from outside Ahmedabad city and have paid deposits on respective dates as shown in Column (3) thereof at Annexure B with full particulars. THE complainant has also annexed at Annex-C, a list showing the names of the persons who, after deposit, cancelled the order for purchase of scooter and the opposite party having refunded only the principal sum of Rs. 500/- without paying any interest and costs. THE Complainant has prayed that the Opposite Party be ordered to refund the entire amount of deposit to the consumers listed at Annexures A, B and C, together with interest at 18% till today and costs and further relief as may be deemed just and expedient by the Commission.

THE Commission ordered summons to be issued to the opposite party, making the same returnable on 24.12.1990. Since the postal acknowledgment receipt showing the receipt of the summons by the opposite party was not received by us, on that date the matter was adjourned and was being adjourned from time to time for that purpose. In the mean- time, the complainant moved an application on February 8, 1991. seeking permission to add the local office of the Opposite Party Lohia Machines, as Opposite Party No. 2. That Application was granted and summons was ordered to be issued to the newly-added Opposite Party No. 2. Notice was also issued to the Post Master, Navrangpura Post Office, to explain about the non-delivery of postal A.D. slip. THE Post Master appeared and filed his report. In response to our summons. Opposite Party No. 2 filed a purshish, stating that they are having a very small office and requested us to send the Summons to the Head Office. We adjourned the matter to March 22, 1991, directing Opposite Party No. 2 to make inquiry from the Head Office and to state before the Commission as to whether they had received the summons or not. Thereafter, on March 22, 1991, the authorized signatory of Opposite Party No. 1 appeared and stated that the Head Office of Lohia Machines had received the Summons. He also gave the written reply signed by him upon instructions from the Head Office. In the said reply, it has been stated on behalf of Opposite Party No. 1 that this Commission has passed an order against M/s. L.M.L. Vespa Ltd., in Appeal No. 12 of 1990 wherein the said company was directed to pay interest on Rs. 500/- at the rate of ten percent.'' From the date of booking till the preparation of the Refund Order along with Rs. 100/- as compensation; and the present case being of similar nature, the Opposite Party prays that the Commission may pass the same order in the present complaint also. The Opposite Party has assured the Commission that they will start issuing refund orders on the order being made by the Commission and will pay up the amounts within one month.

Mr. Vinodbhai Shah appearing on behalf of the complainant Association stated that the complainant Association has been busy for a very long time to collect, all the information from the consumers and had prepared cases of 800 consumers and have spent sufficient time and energy besides expenses and that they are, therefore, entitled to get sufficient amount of costs that may be awarded by the Commission. He has also prayed that the National Commission, in similar case, has awarded 18% Interest and hence this Com- mission should also award the interest at that rate.

WE have considered the submissions of Mr. Vinodbhai Shah. It is true that the Hon''ble National Commission has awarded 18% interest in the case of Mumbai Grahak Panchayat v. Messers Lohia Machines, Ltd. reported in I (1991) CPJ 26 (NC), but the Hon''ble National Commission has awarded this interest from three months after the date of notice for refund of the booting amount, whereas, we had, in the aforesaid Judgment, awarded 10 per cent interest from the date of the deposit and had also awarded an amount of Rs. 100/- to each consumer by way of costs. It is true that this was an appeal and we had not disturbed the finding of the District Forum regarding the rate of interest but then that does not mean that in the appropriate case, we cannot award interest exceeding (10) ten per cent interest per annum. It is true that the complainant Association has put up this case on behalf of all the consumers and is entitled also to share some costs. The consumers have also demanded compensation on account of negligence and indifference of the Opposite Party. The main contention in this respect is that the Opposite Party has booked the orders beyond its capacity and when the company booked the orders, it knew that the company would not be able to deliver the scooters within reasonable time and it has collected huge amounts and has utilized the same as the working capital. Mr. Vinodbhai Shah has submitted that this amounts to unfair trade practice. Since the Opposite Party has not contested the complaint and has agreed to pay 10 per cent interest and costs of Rs. 100/- to each consumer, we are not inclined to deal with and decide this issue of unfair trade practice. In the result, we pass the following order as has been passed in Appeal No. 12 of 1990. (A) Opposite Party No. 1 shall pay Rs. 500/- (five hundred) to each of the consumer whose names and particulars have been included in Annexures ''A'' and ''B'' to the Complaint; (B) The Opposite Party has paid Rs. 300/- (three hundred) to the consumers whose names have been shown in Annexure ''C'', being part of the booking deposit. The Opposite Party No.1 shall pay up the remaining amount of Rs. 200/- (two hundred) to each of those consumers whose names have been shown in Annexure ''C'' to the complaint; (C) Opposite Party No.1 shall pay interest at the rate of 10 per cent on the outstanding amount to each of the consumers whose names have been shown in Annexures A, B and C to the complaint, from the date of deposit till the date of Application, that is to say, upto November 9, 1990 and from 10th November, 1990, Opposite Party No. 1 shall pay interest at (18) eighteen per cent per annum on the outstanding amount till the date of actual payment. The Opposite Party will pay Rs. 100/- (one hundred) as costs and other damages to each of the consumers whose names are shown in Annexures A, B and C. However, 20% of the said costs will be paid to the complainant as their fees. In other words, the Opposite Party will pay Rs. 80/- to each consumer and the remaining Rs. 20/- per consumers, to the complainant Association. Appeal allowed.