EQUIPMENT PURCHASED BY COMPANIES - CONSUMER PROTECTION ACT ?

Educationist/Lawyer

I agree with Bhatiaji. If it can be proved that the equipment purchased was for sole purpose of  earning livelyhood, than it fits in to the ambit of Consumer Fora- A Doctor purchased a heavy machinery for his clinic, if mantains that the said clinic and the equipments are the source of earning livelyhood, it gets covered. Same rule may apply here, if putforth appropriately.

 
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Lawyer

I agree with MR. Bhatia.

 
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Sr Manager - Legal

Then where can a Company file complaint against errant manufacturer?

 
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Scientist/Engineer

@ Kuldeep Gauniyal

In a civil court. The question of balance of convenience also will arise. General in a commercial transaction the purchaser will be mighty compared to the seller (manufacturer). The purchaser will generally hold back payment until the equipment is supplied, tested and proven. Any advance payment he would make, will have to be covered by bank guarantee by the seller. If the seller supplies defective equipment he will be blacklisted by the purchaser and other purchasers also may follow suit. The survival of the seller will be at stake.

The term consumer means the ultimate consumer. The goods will not get travel further. In consumer transactions the seller will be one and the purchasers will be many. Any individual purchaser will be weak against the mughty seller. He would need protection of the law.

In commercial dealings the purchaser will be one and sellers many. Or a single purchaser may purchase the entire production of one seller. If the purchaser blacklists the seller the latter is doomed. Hence the Protection of CPA is not available to the commercial purchaser.

A doctor, lawyer or an engineer may buy just one computer or at the most a few computers. The computer manufacturer will not be dependent on each one of them. On the other hand a big commercial firm will buy computers in thousands. If the computer manufacturer gets a rate contract that would be enough for his survival, say, for one year. But at the same time the computer seller will be afraid of the purchaser lest the latter may cancel the rate contract.

 

 
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Sr Manager - Legal

Thank you Dr. Ramani.

The Company has purchased a costly TV set for its own use at its office.  The TV developes some snags during warranty period and manufacturer does not listen.  What sections of CPC can be invoked by the Purchaser.

 
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