D.O.F:03/05/2023
D.O.O:21/09/2023
IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KASARAGOD
CC.124/2023
Dated this, the 21st day of September 2023
PRESENT:
SRI.KRISHNAN.K : PRESIDENT
SMT.BEENA.K.G : MEMBER
Sini Joseph,
Secretary, Panathadi Women’s Service
Co-operative Society Ltd.5. 252,
Malakallu, Malakallu P.O : Complainant
(Adv: Rajeevan.K)
And
Rajesh.P
Managing Director,
A.K. Tech,
Mithra Marketing India Pvt. Ltd,
Kappumal, Cherukad Post, Kayyanna. : Opposite Party
ORDER
SMT.BEENA.K.G : MEMBER
The brief facts in this case is that the complainant is the secretary of Women’s Service Co-Operative Society Malakallu. The Opposite party is doing manufacturing and marketing of echo - friendly bags in the address shown on the cause title. The complainants society decided to start a bag manufacturing unit as a self-employment programme for the women in the locality to strengthen women empowerment . The complainant and Opposite party entered into an agreement dated 06/10/2018 for supply of raw materials required for the manufacturing units started under the complainant’s society. As per the agreement Rs. 6576700/- was paid to the Opposite party in six installments. The Opposite party prepared the project report and submitted before the society and the unit started functioning on 06/10/2018 onwards. The Opposite party had received Rs. 2071533.37/- by agreeing upon to supply raw materials required for manufacturing. But the Opposite party had supplied the raw materials worth Rs. 643070/- . The complainant’s units had been manufactured bags by using the raw materials supplied by the Opposite party and sent to Opposite party company for sale. As per the agreement the Opposite party has to supply the raw materials to the complainant and the bags produced by the complainant’s unit has to be taken by the Opposite party for marketing. But the Opposite party had paid only Rs. 60744/- for the manufactured unit by using raw materials supplied by Opposite party in the first term from 25/03/2019 to 05/02/2020.The Opposite party has to pay the remaining amount of Rs. 1029117.79/- to the complainant as per the terms. The Opposite party has also failed in supplying the raw materials required for the second phase of manufacture. Besides he has not paid the amount of Rs. 10,29,117/- of the price of the sold bags of the complainant society sold by the Opposite party. As a result the project started with great expectation and with huge investment had to be stopped. The workers who were working in the unit lost their job and machinery is also got damaged due to non use and non-co-operative attitude of the Opposite party. Even though there was a provision in the agreement for maintenance of machinery for five years, though Opposite party was not ready to provide service when required and thus his negligent attitude in rendering service as agreed upon caused heavy loss to the society. The Opposite party had got timely information about the damage of the machineries from the complainant which will cause huge loss. All though the complainant approached the Opposite party many times rendering the said financial loss the Opposite party has been evading the same with lame excuses. At last the complainant caused to sent a registered lawyer notice to the Opposite party by calling upon him to pay the entire amount with compensation. But the Opposite party had neither sent any reply nor repaid the amount. But the Opposite party has been seeking time, continuously at last till the end of March 2023 and thereafter started abusing the complainant in filthy language. The complainant’s society had sustained heavy loss and damages. Since the Opposite party had failed to pay the balance amount and hesitate to render proper service to the complainant as per agreement, caused severe damages to the complainant. The Opposite party is liable for the loss of employment of workers and Joined Registrar Kasaragod already initiated proceeding against the complainant for latches in due course of auditing. The cause of action arose on 06/10/2018 the date of agreement between complainant and Opposite party and also on 10/11/2022 the date of registered lawyer notice to Opposite party. Therefore, the complainant is seeking refund of Rs. 3479581/- with interest @ 12% per annum as the amount due on sale of bag and cost inquired on repairs and compensation for mental agony and loss of employment with cost of proceedings.
The notice of Opposite party returned but when tracked it is found served. name of Opposite party called absent set exparte.
The complainant filed proof affidavit in lieu of chief examination and the documents produced are marked as Ext A1 to A3. Ext A1 is the lawyer notice, Ext A2 is the track record of notice, Ext A3 is the agreement entered into between complainant and opposite party.
The main question raised for the consideration are :-
- Whether there is any latches or deficiency in service on the part of Opposite party?
- Whether the complainant is entitled for relief?
- If so what is the relief.
For convenience the issue No: 1 to 3 can be discussed together.
Here the complainant’s society made a project to start a bag manufacturing unit in self employment for the women in the locality as a co-operative Vanitha society , as a part of woman empowerment. The Opposite party are doing manufacturing and the marketing of echo friendly bags in the address shown in cause title. The complainant and Opposite party entered to an agreement mentioning all terms and condition of the project which is marked as Ext A2. The Opposite party prepared project report before the society and units started functioning on 06/10/2018. The Opposite party’s had received Rs. 20,71,533/- to supply raw materials required for the bag manufacturing unit. But he supplied raw materials worth Rs.643070/-. Thereafter he could not supply raw materials. As per the Ext A3 agreement Opposite party under takes the supply of bags. But he could not act upon the terms of contract caused severe loss to the complainant. As result the unit stopped workers loss job machineries got damaged due to non use even though the complainant remaindered Opposite party all the aforesaid facts many times he was not ready to heed the same. So the complainant caused to send a registered lawyer notice which is marked as Ext A1.
In the absence of rebuttal evidence there is gross deficiency in service and latches on the part of Opposite party which caused severe loss and mental agony to the complainant. The Opposite party is legally bound to compensate to the loss suffered by the complainant. The claim of the complainant is Rs. 34,79,581/- with interest @ 9% per annum from the date of complaint till disbursement with compensation and cost. The complainant is entitled interest for the due amount from opposite Party it is not fair to impose interest on compensation. Considering the facts and circumstances of this case it is genuine. We carefully gone through the affidavit and documents filed by the complainant. Due to the latches on the part of Opposite party the complainant suffered huge loss and mental agony. The Commission holds that an amount of Rs. Five lakhs is a reasonable compensation in this case.
In the result complaint is allowed directing Opposite party to pay an amount of Rs. 29,79,581.42/- with 9% interest from the date of complaint till disbursement with a compensation of Rs. 5 lakhs (Rupees Five lakhs only) along with a cost of Rs. 5000/- (Rupees Five thousand only) to the complainant within thirty days from the date of receipt of copy of this order.
Sd/- Sd/-
MEMBER PRESIDENT
Exhibits
A1- Lawyer notice
A2- Track record of notice
A3- Agreement copy
Sd/- Sd/-
MEMBER PRESIDENT
Forwarded by Order
Assistant Registrar
Ps/
