BEFORE THE DISTRICT FORUM:KURNOOL

Present: Sri.P.V. Nageswara Rao , M.A. LL.M., President(FAC)

And

Smt. C.Preethi,  M.A.LL.B., Lady Member

And

Sri. M.Krishna Reddy, M.Sc.,M.Phil., Male Member

Thursday  the 27^th day of August, 2009

C.C. 53/09

Between:

M.Tirupal Reddy, S/o M.Pulla Reddy, Sri Raghavendra Cycle  Store,

H.No.40/401/C, Bellary Road, Kurnool..                       …  Complainant   

                                 Versus

1. The District Collector and Chairman, K.D.B.CS.C.S. Limited,

D.No.46/790-3, Collector Complex, Kurnool-2.

2. The Executive Director, B.C. Corporation,

Sankshema Bhavan, D.No. 50/706-1, Near Birla Gatge, Kurnool-2.                ….Opposite parties  

 This complaint is coming on this day for orders in the presence of Sri. Napa Ramachandra, Advocate, for the complainant , and Smt.D.S. Saileela, Advocate for opposite parties and upon perusing the material papers on record, the Forum made the following.

ORDER

(As per Sri. P.V.Nageswara Rao,President (FAC)

C.C.53/09

1.     Complaint filed under section 12 of the Consumer Protection Act 1986.

2.     The brief facts of the complaint is as follows:-  The complainant was running a Cycle Shop namely Sri Raghavendra Cycle Stores  , at Bellary Road, Kurnool . M/s. Atlas Cycles Industries Limited , Sonepet, Haryana , supplied Cycles (bare bodies) without any accessories like Cycle stand, bell , lock  under  “Adarana” Project approved  by Government . The complainant supplied  the Cycles  with accessories  to the Mandals under instructions from B.C Corporation , Kurnool and submitted the bills for payment . The opposite party No. 2 paid the amount to the company through the complainant for the Cycles supplied without accessories  , but the payment  to the complainant  was with held  due to shortage of funds. The opposite party No. 1  wanted  to reduce the rates  for spare parts, though  it was on record but it was agreed.  The complainant supplied 9,916/- Cycles  with all accessories  from Mandals  and received  the rates in respect of Cycles  supplied to the Mandals  . He submitted the  bills for payment to opposite party No. 2 along with rates  but the opposite party No.1 and  2  did not pay . The complainant wrote a letter  dated 29-01-2005 to opposite party No. 2 to pay sales tax  and deduct the amount from the amount that was due to himself by opposite party No. 2 . Though the opposite party No. 2 deducted from the amount  that was due  to the complainant  towards sales tax , he did not  pay any amount to the complainant . At last the complainant got issued a notice to both the opposite parties on 10-12-2008 and same was received but there was no reply. Thus, the complaint was filed for Rs.13,87,205/- towards accessories  and Rs.12,62,356/- towards interest  at 12% p.a  from 30-05-2001 to 30-12-2008 and Rs.1,00,000 towards mental agony  totaling Rs.27,49,561/- but the complainant  restricted  his claim to Rs.20 ,00,000/-.

3.     The opposite party No. 2 filed a written version adopted by opposite party No. 1  with a memo. It was an admitted fact that in 1999 an indent have supplied  of Atlas Cycles was issued to Atlas Cycles Industries Limited, Sonepat , Haryana   who supplied  18,026  to its dealers at Kurnool,  who inturn sent the Cycles  to various Mandals  and Municipalities  as per the instructions. The Atlas Cycles Industries  Limited , supplied Cycles without  accessories . The dealers with said accessories  like Cycle  stand , bell . lock  etc., and then supplied to the  various Mandals  . The complainant supplied 9,916 to various Mandals and Municipalities  from 13-04-1999 to 10-12-1999. The State Level Negotiation Committee  with said 1081/- per each Cycle excluding  A.P.G.S.T and C.S.T and costs of the  accessories  . Accordingly  an amount of Rs.2,02,65,550/-  paid to the  M/s. Atlas Cycles Industries Limited by  09-08-2002.  As G.O.Ms.No. 34 dated 29-11-2000  the District Level Committee  and State Level Committee   for constituted  to negotiation the process  with all  suppliers under Adarana Scheme . The complainant  and several other dealers  sent representations  for payment of sale of Cycles . The Managing Director  of A.P. B.C. Co-Operative Society  Finance Corporation  , Hyderabad  sent a letter but receipt of the representation stating that  the matter  was placed before the District Level Negotiation Committee . The District Level  Committee  conducted  3  meetings  on  12-06-2001, 26-02-2002, 15-06-2003  to finalize the rates  of accessories . All the dealers  attended  . The opposite party made any payment to dealers  including  the complainant . The Atlas Cycles  Limited sent letters  to the opposite parties  that they have credited the amount to the dealers  and requested to pay the amount directly to them. The complainant also gave a letter on 18-01-2001  to pay the amount  to Atlas Cycles  Industries Limited ,   for which  they had no objection  . The Cycles were supplied in 1999  and payment were made in 2002 and rates were finalized in 2003 and hence the complainant was bared by limitation. The complainant  was not a consumer and there was  privity of contract. Thus, the complaint  may be dismissed with cost.

4.       On the basis of the above pleadings the points for consideration are

(i) whether there is any deficiency of service on the part of the

opposite parties  ?

(ii) Whether the complainant is entitled to the relief as prayed for?

(iii) To what relief?

5.                On behalf of the complainant Ex. A1 to A8  were marked and on behalf of the opposite party Ex.B1 to B11  were marked .

No written arguments have been filed by the complainant. The opposite party filed written arguments .

   6.          Point No. 1 & 2 : There was no dispute  that under Aharana Project Scheme. M/s. Atlas Cycles Industries Limited , Sonepet , Haryana  , supplied Cycles without any accessories  to the Government  , through its  dealers  including  the complainant which is  Proprietor , Sri Raghavendra  Cycles Stores , Bellary Road , Kurnool. It was not  a dispute that  the complainant supplied  9,916 Cycles with all accessories   like  Cycle stand , bell ,  lock  from  13-04-1999  to 10-12-1999  to various Mandals  and Municipalities  in the District . The complainant filed Ex..A1 Xerox copy of detailed particulars  of credit bill  supplied to B.C. Corporation  , Kurnool. He filed Ex.A2 a Xerox copy  of particulars  of amount received from B.C. Corporation , Kurnool . The Ex.A3  was the Xerox copy of the proceedings of Collector / Chairman  K.D.B.C.S. Limited , Kurnool stating  the name suppliers   of the Cycles  and number of the cycles  to be supplied  under which the complainant  was given permission to supply 9,916  Cycles  under Ex.A3 Rs. 73,96,941/- was paid to the  complainant  on the basis of finalized  rate at 1,081/- for Cycle . The Ex.A4 was the letter addressed by the complainant  to settle the amount for payment  of the sales tax or pay the sales tax direct to the Commercial Department  . It was Ex.A4 dated 07-08-2006 .  Ex.A5 was the same letter of E.xA4 . At was the certified of posting. On 25-10-2007 the complaint wrote a letter  to the Executive Director , B..C . Corporation , Kurnool  either pay to the entire  amount or  refer to the matter  arbitration . The Ex.A7 was  office copy of  the  legal notice issued to the opposite parties  on 10-12-2008  . The Ex.A8 was the proceedings of Executive Director , B.C. Corporation  , Mahaboobngar , mentioning  the rate of the  Cycle  frame as Rs.1,081/-  and the rate finalized  for accessories  like bell , lock  and carrier stand  as Rs.237-45/-

7.     On the other hand the opposite parties contended that the complainant  himself wrote a letter  on 18-11-2001  to the Executive  Director , B.C. Corporation , Kurnool to issue  all the payment  by D.D to Atlas Cycle Industries Limited and he has no objection . It was Ex.B1 and also issued an acknowledgement  dated 31-05-2001  under Ex.B2 that he received Rs.15,00,000/- towards Adarana   payment by way of cheque  . The opposite parties filed Ex.B3 proceedings of the Collector /Chairman , KDBCSCS Limited ,Kurnool on 31-05-2001 for payment of Rs.15,00,000/- towards advance against the value arrived in Annexure to the complainant  and Rs.58,874/- was released to Commercial  Tax  Officer towards  tax on behalf of the  complainant. So it would shown in Ex.B3 and Ex.B2 were one and same. The complainant was paid Rs.15,00,000/- under Ex.B2 towards  advance and the Ex.B3 disclosed  the balance amount would be released soon after completion  of verification of the tools  by the committee. Ex.B4 was the letter  from Atlas Cycles (Haryana) Limited , Sahibabad,  to the District Collector , Kurnool dated 07-12-2005 that the  dealer  i.e,  the complainant  had to pay Rs.14,80,000/- to Atlas Cycles Limited and hence the amount may be sent directly to the company. Again on 02-09-2008  the Atlas Cycles Limited , Sahibabad addressed a letter to the District Collector , Kurnool that  the company submitted the dealer   signed letters for  making payment directly of them  on their  behalf  and company had credited the amounts to the dealers  and they were using the  credits  without any hurdles  and company and requested to  advise the Executive Director , B.C. Corporation , Kurnool to settle the matter  for payment. So on 02-09-2008 there was no payment from B.C. Corporation , either to the complainant or to the manufacturer  it was Ex.B5. Under Ex.B6  Xerox copy of the letter form Atlas Cycles Limited to the Executive Director  , B.C. Corporation , Kurnool dated 20-07-2004 to pay the amount of various dealers  including the complainant to the  company . Even though the complainant  wrote a letter  to the B.C. Corporation to pay the amount to the company directly  . The duty of the opposite parties was to make payment of the amount  to the complainant who supplied the accessories  to the bare cycles supplied the manufacturer . On receipt of the amount the complainant or the dealer would pay the amount directly to the manufacturer . There was no contract in between the  manufacturer and the B.C. Corporation  for supply of accessories bare cycles . The Atlas Cycles Limited  had not supplied the accessories of its dealers .  The dealers purchased  the accessories  and fixed to the cycles  and supplied as per the  instructions to various Mandals and Municipalities . Ex.B7 was a copy of the Minutes of the meeting  held at District Level Negotiation Committee, Kurnool on 12-06-2001 to which the complainant  also attended . Ex.B8 was the Xerox copy of the members of the attending meeting at District Level Negotiation Committee, Kurnool  on 26-06-2002 including the complainant  . E.xB9  was the  Xerox copy  of the members attended including  the complainant  to  District Level Negotiation  Committee , Kurnool on 15-06-2003 . Ex.B10 was the  Xerox copy of G.O.Ms.No. 34 Backward Classes  Welfare (B1) Department dated 29-11-2000  with regard to release of payment to suppliers of bills on basis of recommendation   of the State Level and District Level Negotiation Committee under Adarana  Programme . Ex.B11 was a letter  form Vice Chairman  and Managing Director , A.P Backward Classes Cooperative Finance         Corporation Limited ,Hyderabad to the District Collector ,Kurnool  release of balance payment under Adarana one project .

8.     The opposite parties pleaded the complaint is bared by limitation  because the  cycles were  supplied in 1991  and complaint was  filed in 2009 , but there was correspondence  in between the Atlas Cycles Limited and District Collector  in 2008 under Ex.B5 dated 02-09-2008 and another letter Ex.B4 dated 07-05-2005  and the Backward Classes Corporation Finance Limited  , Hyderabad wrote a letter  under 537 . The complaint is not bared by limitation.  Even though the complainant wrote a letter  under Ex.B1 in 2001 to B.C. Corporation , Kurnool to make payment to the Atlas Cycles Limited and there was no payment till 2008 and the complainant  now filed a complaint  for the said amount. He was also negligent  by way of contribute  negligence  and hence the complainant as not entitled  to any interest @ 12% p.a . As the opposite parties  paid to pay the amount either to the complainant or to the manufacturer  and there was no proof of payment to the manufacturer  . At least the complainant is entitled  to the accessories  supplied to 9,916 /- cycles i.e, Rs.13,85,205/-   and he is entitled  to Rs.5,000/- towards mental agony totaling Rs.13,92,205/- . Thus the points are answered accordingly.

9.  Point NO. 3 :  In the result , the complaint is allowed for Rs.13,92,205/- without any interest  and cost payable  by opposite  parties 1 and 2 jointly and severally within 60 days  to the complainant  from the date of receipt of this order . The rest of the claim is dismissed.

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 27^th day of August, 2009.

         Sd/-                                 Sd/-                  Sd/-

LADY MEMBER              PRESIDENT FAC)       MALE MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant :Nil         For the opposite parties :Nil

List of exhibits marked for the complainant:-

List  of exhibits marked for the opposite parties:   

          Sd/-                                  Sd/-                  Sd/-

LADY MEMBER              PRESIDENT FAC)       MALE MEMBER

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties

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