PHILIPS INDIA LIMITED vs RAKESH BHATIA

THIS appeal arising from the order dated 14.10.1999 passed by the District Forum emanates from the misleading advertisement about a product known as Philips Power House Music System than the one sold to the respondent.

ACCORDING to the respondent the said music system suffered from the following defects and discrepancies vis-a-vis the advertisement: (1) ACCORDING to the advertisement it was mentioned to 500 Watts PMPO whereas it was only 450 Watts PMPO. (2) The advertisement showed that the said model has the matching speakers with AS 9500 Model with DH 928 whereas actually it was only DH 915. (3) In the advertisement it was mentioned that there are 17 functions in the remote control whereas it has only 3 functions.

The main contentions of the Counsel for the appellant against the impugned order are, firstly that the speakers given with the set had output of 500 watts and were of DH 928 as specified in the literature provided with the set; secondly that the concept of the power house system was that it was an expandable system where the consumer could purchase CD player, etc. without incurring extra cost on the system as there were many sockets or plugs that were supplied with the system; thirdly that the system in question had 10 remote functions and other 7 functions were provided only to make the CD player more functional and lastly that these features were clearly projected in the literature provided with the system as well as a catalogue and thus there was no kind of nexus between the advertisement and the article purchased.

On the contrary the Counsel for the respondent has contended with vehemence that neither from the advertisement nor from the technical specifications this fact that 17 remote systems will be operative only when CD is purchased and used receives support and on the contrary this is verified from the fact that CD player is an integral part of the system. And lastly that the nexus between the advertisement and the purchased article is demonstrated from the fact that there was only single advertisement and the music system was of its own kind as projected in the advertisement and on other company manufactured such music system and no other dealer was selling such system.

WE have perused the record as well as the impugned order and accorded careful consideration to the rival contention. There is a series of communications between the parties with regard to the functions of the remote control of the music system as well as the advertisement which lured the respondent to possess such a system. The last such letter dated 31.5.1995 sent by the respondent to the Manager of the appellant wherein it was specifically mentioned that nowhere in the advertisement it was mentioned that the full 17 functions of the remote control will work only with CD player and not with AS 9500 Power House. So much so the price mentioned in the advertisement was Rs. 14,295/- plus tax pertaining to only AS 9500 system with two matching DS 928 speakers and not the CD players. It appears that the main grievance of the respondent is with regard to the remote control functions and not that of deficiency or discrepancies between the advertised system and the system purchased by the respondent. The system was purchased way back in the year 1994. The respondent is in possession of this system and has been enjoying it for the last 10 years. At the end of the day to ask the appellant to refund the entire amount would be against the interest of the appellant. However for having been lured by the misleading advertisement the respondent can be compensated on account of unfair trade practice inasmuch as according to advertisement there were 17 remote control functions besides other features but were not provided in the system.

IN the result we partly allow the appeal by modifying the amount by way of directing the appellant to pay a sum of Rs. 10,000/- as compensation for mental agony and unfair trade practice. Bank Guarantee/FDR, if any, furnished by the appellant be returned forthwith. A copy of this order as per the statutory requirements, be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to record room. Appeal partly allowed.