Escorts Ltd. vs RATHOD LALJI BHAI RAMUBHAI

THIS is an appeal against the order dated 27th November, 1992 passed by the State Commission of Gujarat at Ahmedabad in Original Complaint No. 303 of 1991. The facts of the case briefly are that the complaints are agriculturists who had taken a loan of Rs. 60,000/- from the Dena Bank for purchase of a tractor and the said loan amount was paid directly to Respondent No. 2. M/s Zalawad Tractors, authorised dealers of M/s. Escorts Ltd., by the Bank. According to the complainant, he has paid a total sum of Rs 1,79,674 as the price of the tractor including the loan amount of the Bank. The respondent complainant however, did not receive the tractor from the Dealer nor was the amount paid to the Dealer refunded by him. The State Commission, by its interim order, has directed the appellant here and Opposite Party No. 4 M/s. Escorts Ltd., to deposit a sum of Rs. 1,60,000/- shown in the credit note of 1.4.1992 issued by the Dealer M/s. Zalawad Tractors to the Manufacturer M/s. Escorts Ltd. There is some controversy as to the correctness of this amount and the Counsel for M/s. Escorts Ltd., averred that this amount was not with the company. However, this point is not relevant for the disposal of this appeal.

IN this appeal, Counsel for the Respondent No. 4 M/s. Escorts Ltd., before the State Commission and appellant before us, submitted that the agreement between the appellant M/s. Escorts Ltd., and respondent No. 2 M/s. Zalawad tractors was one between principal and principal and that there was no privity of contract between the appellant and respondent No. 1 (M/s Zalawad Tractors) for the sale of the tractor to Respondent No. 1 complainant. As such the appellant M/s. Escorts Ltd., was not liable under the Consumer Protection Act. It is also noticed that the State Commission had passed an interim order granting relief in the form of a deposit being directed to be made with the Commission pending disposal of the Original Complaint. As has been laid down by the Hon''ble Supreme Court of India in Civil Appeal No. 4584 of 1994 (arising out of SLP (C) No. 272/94 Morgan Stanely Mutual Fund v. Kartick Das with Civil Appeal No. 4585 of 1994 (arising out of SLP(C) No. 321/94), II (1994) CPJ 7 (SC). Dr. Arvind Gupta v. Securities & Exchange Board of India & Ors. decided on May 20,1994 the Consumer Forums have no power to grant any interim relief in original complaint petitions.

In view of what is stated above, the appeal is allowed and the interim order passed by the State Commission is set aside. The State Commission will proceed to dispose of the complaint in accordance with law. Appeal allowed.