T.RAGHAVAN vs PAL-PEUGEOT LIMITED

AN application has been filed by Shri T. Raghavan, Chennai under Section 12B of the Monopolies and Restrictive Trade Practices Act, 1969 (for brief the Act) seeking compensation from the respondent on the ground that it indulged in unfair trade practices. The facts of the case as contained in the compensation application may be briefly summarized as below.

THE applicant had booked a Pal Peugeot 309 car with the respondent in February, 1996 and deposited a sum of Rs. 25,000/- as registration amount. THE booking was registered by the respondent and the applicant was allotted a priority number. THE applicant thereafter requested for cancellation of the booking of the car through its letter dated 10.2.1996. THE respondent in its letter dated 19.1.1997 indicated the cancellation number and stated that the process of cancellation was being done. THE applicant has not received the amount despite repeated approaches to the respondent. Since the respondent did not file a reply to the notice of the compensation application despite due service the respondent was set ex parte on 10.12.1998. Thereafter the applicant filed an affidavit of evidence reiterating the averments made in the compensation application. Since the respondent was absent on the date of final hearing on 23.4.1999 despite intimation to it, I gave a hearing to the applicant.

I have carefully gone through the records of the case. Since the respondent did not file any reply and it has not appeared before the Commission the case pleaded by the applicant will have to be accepted in accordance with the provisions contained in Order VIII, Rules 5 and 10 of the Code of Civil Procedure, 1908. The respondent has already intimated to the applicant that the refund order was being processed thereby admitting the receipt of the booking amount. On cancellation the respondent was to refund the booking amount with interest within 60 days of the receipt of cancellation. The action of the respondent in not honouring its representation that the booking amount will be refunded on cancellation of the booking amounts to unfair trade practice as defined under Section 36A of the Act. The applicant in this case has certainly suffered loss and damage due to indulgence in unfair trade practice on the part of the respondent as he has been deprived of the booking amount as well as its use.

IN the premises, while holding the respondent responsible for indulgence in unfair trade practices, I direct that the respondent shall refund the booking amount of Rs. 25,000/- to Shri T. Raghavan, the applicant alongwith 18% interest from the date of deposit within a period of eight weeks from the date of receipt of this order. I also direct that the respondent shall pay Rs. 1,000/- as cost to the applicant. The respondent shall file an affidavit of compliance within four weeks thereafter. C.A. disposed of.