Consumer commission directs firm to cough up Rs 49 lakh

The State Consumer Disputes Redressal Commission (SCDRC), Maharashtra has directed a company to pay Rs 49 lakh for non-delivery of goods and mental agony to another firm it accepted as a "consumer". The SCDRC accepted the complainant firm as consumer even though the goods involved were part of the business of the complainant and services of the opponents were engaged for business purpose because for the complainant company and people representing it is the only means of self-employment for the family that runs the business and exclusively undertaken for the purpose of livelihood.

The order passed on June 20 by P B Joshi, presiding judicial member and A K Zade, member. M/s Beekay International through its partner Ved Prakash Gupta had filed a complaint against CFL Crossfreight Pvt.Ltd having an office in Mumbai and in Switzerland.

The partnership firm of Guptas' manufactures handmade articles and used to export those articles to different countries. CFL Crossfrieght was asked by the complainant to ship goods from Mumbai to Switzerland. For the same, the CFL had raised an invoice for which the complainant had paid the money. It was agreed that only upon receipt of the original documents and other procedure from the consignee will opponent go ahead.

As per the order, the general business practice prevailing in the market it is the responsibility of the delivery agent to follow procedure. The complainant was expecting that the payment would be made by the consignee to the collecting bank at the destination. When the payments of the invoices were not received on due dates from the consignee, they contacted CFL Mumbai office. The complainant later realised that the CFL Mumbai office is not aware of the whereabouts of the goods. It then filed a claim for an amount of Rs.52.75 lakh including Rs 5 lakh for mental agony and loss of reputation.

The commission while hearing the case felt that Rs 5 lakh was excessive and instead awarded Rs 2 lakhs for mental agony besides Rs 47.25 lakhs (including all business transaction charges) and asked that a total of Rs 49.25 lakh be given with interest.