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Company is a consumer??

(Querist) 02 February 2013 This query is : Resolved 
Brief facts:

A company (registered office Indore, Corporate office Indore, placed two orders for manufacturing, installing signage(name of mall) totem polls etc. for its Mall located at Ujjain. The manufacturer, supplier of Signage is in Delhi. There were defect in signages, poor quality products used, some of signages broke away and fell which could have hurt anyone. The notice which we have served includes the amount of compensation on account of loss due to delay (216 days = Rs. 21Lakhs) actual loss was around 11 Lakhs. Total amount mentioned in notice was Rs.32lakhs. Company is ready to reduce the compensation amount and bringing total amount of claim below Rs.20Lakhs. can we decrease this amount of claim (need supportive judgement)


1. Should we file consumer complaint at Ujjain/Indore (need supportive judgement)
2. Pecuniary Jurisdiction lies with Bhopal State Consumer Forum or Indore Consumer Forum or Ujjain Consumer Forum.
3. Should we file suit for recovery at Ujjain or Indore??
R.K Nanda (Expert) 02 February 2013
without reading said notice no proper reply

can be given.
R.K Nanda (Expert) 02 February 2013
attach said notice.
ajay sethi (Expert) 02 February 2013
company is not a consumer . if company has to recover its dues you have to move civil courts
Advocate Bhartesh goyal (Expert) 02 February 2013
your company has not hired any services from opposite party so your case does not fall under the provisions of consumer protection act.Besides this your company has placed the order for manufacturing the goods to earn money/profit, means for commercial purpose/activity for which provisions of consumer protection act are not attracted.Approach to civil court.
Raj Kumar Makkad (Expert) 02 February 2013
First of all you need to find out whether an arbitration clause is present or not in the agreement and if yes then avail it otherwise file a civil suit at Ujjain Civil Court wherein the part of the cause of action has accrued to you.
V R SHROFF (Expert) 02 February 2013
Should we file consumer complaint
CO, & BOTH PARTIES ARE COMMERCIAL ESTABLISHMENT
CANNOT MOVE CONSUMER FORUM.
NOT A CONSUMER, in this particular case.
sahil gupta (Querist) 03 February 2013
No arbitration clause is present.

The goods (Signages, totem poles etc.) were not meant to be sold. They are placed, affixed at respective places (Entrance of mall, parking etc. Is company ultimate consumer in the present case.
V R SHROFF (Expert) 03 February 2013
Aim and objective is commercial activity.

But trying is not out of place.
Side by side also file civil suit.

Advocate M.Bhadra (Expert) 03 February 2013
Company may be consumer and can seeks redress from Consumer Forum,the Supreme Court held on:---Saturday, February 21, 2009
COMPANY CAN SUE POWER SUPPLIERS UNDER CONSUMER LAW: SUPREME COURT
The Supreme Court has ruled in Karnataka Power Transmission Corpn. & Anr. vs. Ashok Iron Works Pvt. Ltd. on 09/02/2009 that companies engaged in commercial activities can drag their electricity supplier to a consumer forum and seek damages for deficiency in services.
prabhakar singh (Expert) 03 February 2013
To decide an issue of the kind put forward, the crux lies in "purpose" and not in what nature of personality judicially the complainant is?

Since the two orders for manufacturing, installing signage(name of mall) totem polls etc. for its Mall located at Ujjain were NOT for RESALE but for personal use,your client company, in my view,would be treated a consumer on strength of judicial pronouncement made so far.
Raj Kumar Makkad (Expert) 03 February 2013
I do agree with the opinion of Bhadra.
K.K.Ganguly (Expert) 03 February 2013
The ultimate objective of the said goods (totem poles, signage etc.) purchased was for enhancing commercial activity of big scale business enterprise and not for any body's personal use or earning anybody's livelihood through small scale comercial activity.

So, it is not covered under the Consumer Protection Act and does not fall under the jurisdiction of the Consumer Forum.
sahil gupta (Querist) 04 February 2013
Thanks to all experts..


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