FA.No.375/2005 against CD.No.432/2002 District Consumer Disputes Redressal Forum-I, Hyderabad.

Between-

1.Mr.S.Haranath, S/o.Raja Rao,

   Aged about 66 years, Retd. Service,

   Indian, R/o.1-3-176/4/G/2, Padmashali Colony,

   Gandhinagar, Hyderabad – 500 080.

2.Mrs.S.sridevi, W/o.Mr.S.Haranath,

   Aged about 61 years, Housewife, Indian,

   R/o.1-3-176/4/G/2, Padmashali Colony,

   Gandhinagar, Hyderabad – 500 080.

…Appellants/Complainants.

And

1.M/s.Frontier Trading (Japan Life India),

   Rep. by its Prop. Vasanta Raj Pandit,

   16, Maker Tower, J.Cuffe Parade,

   Mumbai – 400 005.

2.Mrs.Rachana Kohil, Showroom Incharge,

   6-3-853, Meridian Plaza,

   Ameerpet, Hyderabad, A.P.

(Appeal is not pressed against R.2)

…Respondents/Opp.Parties.

Counsel  for the appellants                        -  Mr.V.Gourisankara Rao. 

Counsel for the Respondent                      -   R.1 served.                                                                             

QUORUM-THE HON’BLE MR.JUSTICE D.APPA RAO, PRESIDENT,

AND

SMT.M.SHREESHA, HON’BLE LADY MEMBER,

TWO THOUSAND EIGHT.

Oral Order (Per Hon’ble Mr.Justice D.Appa Rao, President)

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            Heard the learned counsel for the appellants.  None appeared for the respondent despite service of notice. 

1.         The 2^nd complainant is the wife of 1^st complainant.  The case of the complainants in brief is that the 1^st opposite party, a sole proprietary concern, engaged in the business of multi level marketing of Magnetic and Acupressure Health Product known as ‘Japan Life India – Total Sleeping System’.  It represented that the magnetism improves the blood circulation, reduces stiffness, heals fractures faster and gives relief for many diseases such as diabetes, hypertension, spinal cord pains, joint pains, white patches, etc.  As they were suffering from diabetes, B.P. etc., they purchased a Megastar sleeping system for a total sale consideration of Rs.83,160/- on 25.05.2000 in its branch office situated at Ameerpet.  It was delivered to them on 17.06.2000.  Though they purchased it for their personal use, in the bill it was mentioned that it was purchased by one ‘Sri Hari Enterprises’.  In fact, they never involved in any business transaction nor they never did business in the name of ‘Sri Hari Enterprises’.  The 1^st complainant is a retired government servant and the 2^nd complainant is the house wife.  They started using the system, but none of their diseases was cured.  On the other hand, their health condition was deteriorated.  It was not backed up by any scientific theory.  In fact, before using this product the 2^nd complainant was having blood sugar.  However, after using it the vitiligo patches were increased.  Thereupon, they were forced to stop usage of the bed.  They requested the 1^st opposite party to take back the system and refund the money.  The 1^st opposite party asked them to wait for three blood cycles.  The complainant alleged that the opposite parties were making false representations that this device would cure all the diseases.  This amounts to misrepresentation and unfair trade practice.  Therefore, they claimed Rs.83,160/- together with interest at 24 percent per annum, Rs.50,000/- towards mental agony and Rs.10,000/- towards costs.

2.         The opposite parties resisted the complaint alleging that the complaint was not maintainable.  There was no defect in the system delivered by them to the complainants.  There was no deficiency in service.  The District Forum has no territorial jurisdiction as it was agreed between the parties that all disputes shall be subject to the jurisdiction of Mumbai Court, which is evident from the Invoice– cum-Delivery challan singed by the complainants.  The complainants are not consumers.  Since the 1^st complainant was unable to conduct the business successfully, he was trying to shift the blame on them by falsely alleging that the JLI-TSS has not proved beneficial to him.  The system consists of a health pad, health pillow and a goose-down-comforter (quilt).  This product patented in various countries including United States of America, Korea, Malaysia, European Patent Office and Singapore.  The system is a medical device based on well known acupressure and magnetic treatment, which is fast gaining acceptance all over the world.  The deterioration of health condition, if any, was not due to usage of the system.  The complainants did not suffer any health problem or mental agony due to usage of the product. 

3.         The 1^st complainant filed affidavit and Exs.A.1 to A,11 were marked, while opposite parties filed Exs.B.1 to B.10.

4.         The District Forum after considering the evidence placed on record opined that the receipts Exs.A.2 and A.3 stand in the name of Sri Hari Enterprises.  The complainants did not purchase the system.  It was further observed that they had failed to prove that they had suffered migraine problem by using mattress.   It was not a consumer dispute, and consequently the complaint was dismissed.

         Aggrieved by the said decision, the complainants preferred this appeal contending that the District Forum did not appreciate the facts in correct perspective.  It had failed to see that though the complainants purchased the said sleeping system, the opposite parties for their business convenience had termed it as ‘Srihari Enterprises’ instead of naming the individual complainants in the bills, since wife and husband are to be shown as one unit as per company rules.  The complainant could prove that they never did business, and that it was purchased for their own use believing that it would cure the diseases as represented by the opposite parties, as evidenced by their own brochures in this regard, and that they could not get any relief.  On the other hand, their ailments were increased.  They were entitled to the amount.  It would, undoubtedly, unfair trade practice.  It was  not their case that they had suffered from migraine which the District Forum thought that they were suffering.  The medical record would show that the diseases, from which they were suffering, were not cured.  Therefore, they prayed that the complaint be allowed. 

6.         It is an undisputed fact that the first opposite party was carrying on business of multi level marketing of an acupressure and magnetic treatment instrument known as Japan Life India – Total Sleeping System (JLI– TSS) through its distributors at various levels.  It consists of a health pad, health pillow and a goose-down-comforter (quilt).  It claimed that the device would cure many a diseases including diabetes, hypertension, etc.   According to them it is a medical device based on well known acupressure and magnetic therapy.  It consists of three elements.  These three elements are effective in the following manner--

(i)                 Health pad (Acupressure and Magnetic mattress)--

  In addition to these magnets, the pad contains specially processed nodes that simulate Japanese and Chinese finger pressure (Acupressure) massage techniques.

(ii)               Health Pillow-- This is specially designed to maintain the head at the right height from the body.  It contains specially developed bipolar magnets that help improve blood circulation to the neck and  head.  There are strategically placed massage nodes in the pillow which help in relieving headaches, stress and stiffness of the neck.

(iii)             Goose down comforter (Quilt) -- A single size quilt contains 96 specially designed bipolar permanent magnets.  It helps to maintain constant body temperature, which is essential to the maintenance of good health. 

Though it claimed that it had gained good business and various countries had approved this therapy……         

PRESIDENT               LADY MEMBER               MALE MEMBER

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