Date of Filing 15.06.2023

                                                                                                       Date of Disposal: 18.12.2023

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION

THIRUVALLUR

BEFORE TMT. Dr.S.M. LATHA MAHESWARI, MA. ML, Ph.D (Law),                                    …….PRESIDENT

               THIRU.P.VINODH KUMAR, B.Sc., BL,                                                                           ……MEMBER-I

               THIUR.P.MURUGAN, M.Com, (ICWA), BL.,                                                                  ……MEMBER-II

CC.No.68/2023

THIS MONDAY, THE 18^th DAY OF DECEMBER 2023

Mr.Sekar,

Velamrith Infratech Private Limited,

No.4/166B, Second North Main Road,

Kapaleeshwarar Nagar,

Neelankarai – 600 041.                                                                           ......Complainant.

                                                                                 //Vs//

V378 Koka Technology Private Limited,

Rep. by Sunder Arumugam,

No.69, Vellalar Street, Mogappair west,

Chennai – 600 037.                                                                               ……Opposite party.

Counsel for the complainant                                               : M/s.V.Akshaya, Advocate.

Counsel for the opposite party.                                           : Exparte.

This complaint coming before us on various dates and finally on 11.12.2023 in the presence of M/s.V.Akshaya, counsel for the complainant and opposite party was set exparte for non appearance and upon perusing the documents and evidences of both sides this Commission delivered the following:

ORDER

PRONOUNCED BY TMT.Dr.S.M. LATHA MAHESWARI, PRESIDENT

1. This complaint has been filed by the complainant u/s 35 of the Consumer Protection Act, 2019 alleging deficiency in service against the opposite party with regard to the non delivery of the Software along with a prayer to direct the opposite party to refund the money Rs.2,50,000/- paid for service to the complainant, to pay a sum of Rs.1,00,000/- towards compensation for the mental agony and hardship caused to the complainant due to the deficiency in service on the part of the opposite party and to pay a sum of Rs.10,000/- towards the cost of the complainant.

Summary of facts culminating into complaint:-

2. The complainant had purchased ERP software from the opposite party company KOKA TECHNOLOGY PRIVATE LIMITED on 22.11.2022.  The order was confirmed with cash payment of Rs.2001, on 23.11.2022 Rs.1,18,000/- and on 22.12.2022 Rs.50,000/- towards part payment. On 02.12.2022 link for ERP was created and demo datas were given. On 20.12.2022 the complainant asked for a practice video but did not receive it. On 06.01.2023 the opposite party KOKA tech agreed to give data and plan for live but there was no response from the opposite party company. Complainant visited the opposite party KOKA tech office on 14.01.2023 it was informed that everything was ready. The complainant planned to visit the opposite party on 18.01.2023 but when the complainant visited on said date no work was done and nothing has been updated.  On 19.01.2023 the complainant reached the opposite party office and asked to upload data in ERP by Mrs Divya and on the same day mail was also sent. On 24.01.2023 the complainant visited the opposite party office and waited more than an hour and the opposite party company replied that it was still in process. On 27.01.2023 the opposite party company told that they would discuss with the team and update shortly but nothing was updated.  Then the complainant planned to cancel the order because no work was done on time. On 30.01.2023 he received a call from MrGanesh from the opposite party office stating that he has been assigned for the project but nothing was updated. On 16.02.2023 one Mr.Sunder from opposite party told that he was willing to continue the project and agreed to give time schedule on 17.02.2023.  The complainant called Mr.Sunder but he did not answer the call for 2 days.  On 19.02.2023 the complainant again called Mr.Sunder but he stated that he was admitted in hospital.  On 21.02.2023 the complainant called Mr.Sundar and he told that the training would start from tomorrow and when the complainant asked for time schedule, Mr.Sunder agreed to give the schedule on the next day.  On 22.02.2023 the complainant contacted Mr.Sunder regarding the time schedule but he told that it was still in process. On 23.02.2023 the complainant called Mr.Sunder and he told the complainant that everything was ready and it would start by 12.30 pm today.  Then again when the complainant called him after reaching the office no calls were answered and the complainant did not get any call back.  Until 03.04.2023 no update was given by the opposite party company and the problem was not solved.  Then the complainant messaged to the opposite party company and they replied that they would solve an update but there was no update till now. By believing the words of the opposite party that the ERP would be implemented by 15^th January, the complainant took up a new project but due to failure in implementation of ERP, the project was cancelled which resulted in huge monetary loss to the complainant. It was very difficult to communicate with the right person in KOKA tech. No one was giving a proper reason and the complainant was not interested in continuing with the opposite party company because the ERP was expected to be implemented by 15^th January 2023 and nothing was done on time. The complainant decided to terminate the contract but for that also there was no reply from the opposite party. On 08.05.2023 a legal notice was issued to the opposite party to show cause for dereliction of duty, deficiency of service and unfair trade practice.  The notice was returned.  The opposite party did not take any steps to liquidate their liability and failed to make reply with the statutory period of 15days.  Thus aggrieved by the act of the opposite party the present complaint was filed to direct the opposite party to refund the money Rs.2,50,000/- paid towards service, to pay a sum of Rs.1,00,000/- towards compensation for the mental agony and hardship caused to the complainant due to the deficiency in service committed on the part of the opposite party and to pay a sum of Rs.10,000/- towards the cost of the complainant.

3. On the side of complainant proof affidavit was filed and documents marked as Ex.A1 to Ex A6 were submitted. As the correct address of opposite party could not be found, paper publication was ordered which was effectively made on 21.10.2023. But the opposite party did not appear before this Commission to file any written version and hence he was called absent and set exparte on 20.11.2023 for non filing of written version as per the statute.

Points for consideration:-

1. Whether the complaint as filed before this Commission is maintainable as the complaint was filed by company and hot hit by commercial purpose?
2. Whether the complaint allegations regarding non delivery of the Software by the opposite party has been successfully proved by the complainant as deficiency in service on the part of the opposite party?
3. If so to what relief the complainant is entitled?

Point No.1:-

The following documents were filed on the side of complainant in support of their contentions;

1. Quote for ERP dated 22.11.2022 was marked as Ex.A1;
2. Purchase order dated 22.11.2022 was marked as Ex.A2;
3. Proof of payment dated 23.11.2022 &20.12.2023 was marked as Ex.A3;
4. WhatsApp Chat was marked as Ex.A4;
5. Legal notice issued by the complainant to the opposite party dated 18.04.2023 was marked as Ex.A5;
6. Returned cover was marked as Ex.A6;

4. As the complainant is a company, even in the absence of opposite party taking a defense, this Commission entertained the question as to maintainability of the complaint to know whether the transaction involved is commercial purpose or not. On going through the averments filed by the complainant it comes to the knowledge of the Commission that the issue relates to commissioning of a software for its use.  As per literature (online) it is found as follows;

“Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.

ERP systems tie together a multitude of business processes and enable the flow of data between them. By collecting an organization’s shared transactional data from multiple sources, ERP systems eliminate data duplication and provide data integrity with a single source of truth.

Today, ERP systems are critical for managing thousands of businesses of all sizes and in all industries. To these companies, ERP is as indispensable as the electricity that keeps the lights on.”

Thus we could safely conclude that the software purchase by the complainant company is only for their personal use to manage the day to day activities and not use for making any profit out of the same.  Thus we hold that this complaint is maintainable before this Commission.

Point No.2:-

5. Heard the complainant and perused the pleadings and material evidences produced by the complainant. 

6. The case of the complainant is that they purchased ERP software from the opposite party on 22.11.2022 vide purchase order Ex.A2 for total sum of Rs.3,18,600/- and Rs.2001/- was paid as cash and Rs.1,18,000/- and Rs.50,000/- was paid on 23.11.2022 and 20.12.2022 respectively.  For which proof was submitted vide Ex.A3 however no proof for payment of Rs.2001/- was filed.  It is seen that though the payment was made on 22.11.2022 and the purchase order was confirmed, till today the ERP software was not supplied to the complainant.  The complainant contended that various persons from the opposite party contacted them however the ERP software was not implemented successfully to the complainant.  The legal notice issued to the opposite party was also filed as Ex.A5 dated 18.04.2023 wherein the non cooperation on the part of the opposite party referred as to not giving proper training and not solving the problem in the spread sheet uploaded, sharing and missing of data was not solved etc. The complainant also sought for a refund of Rs.2,50,000/-.  However, the said notice was returned as addressee left without instruction.  Even in the present complaint as the correct address of opposite party could not be found, paper publication was ordered which was effectively made on 21.10.2023.  Still the opposite party did not appear before this Commission to refute the complaint allegations.  In such facts and circumstances having taken the purchase order for ERP and receiving a sum of Rs.1,68,000/- towards consideration (Ex.A3), not providing the ERP software to the satisfaction of the complainant certainly amounts to deficiency in service.  Thus we answer the point holding that the opposite party had committed deficiency in service and that the same has been successfully proved by the complainant.

Point No.3:-

7. Though the complainant has claimed Rs.2,50,000/-, he had submitted proof only for payment of Rs.1,68,000/-.  Thus, as we have held above that the opposite party had committed deficiency in service in not providing the software we direct the opposite party to refund the said amount along with compensation of Rs.50,000/- for the mental agony and hardship caused to the complainant and we also award Rs.5,000/- towards litigation expenses to the complainant.

In the result, the complaint is partly allowed against the opposite party directing them

a) To refund a sum of Rs.1,68,000/- (Rupees one lakh sixty eight thousand only) with 6% interest from the respective date of payments to the complainant within six weeks from the date of receipt of copy of this order;

b) To pay a sum of Rs.50,000/- (Rupees fifty thousand only) towards compensation for the mental agony and hardship caused to the complainant;

c) To pay a sum of Rs.5,000/- (Rupees five thousand only) towards litigation expenses to the complainant;

d) Amount in clause (a) if not paid within six weeks from the date of receipt of copy of this order, interest at the rate of 9% will be levied on the said amount from the respective dates of payment till realization.

Dictated by the President to the steno-typist, transcribed and computerized by him, corrected by the President and pronounced by us in the open Commission on this 18^th day of December 2023.

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 MEMBER-II                                        MEMBER-I                                              PRESIDENT

List of document filed by the complainant:-

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MEMBER-II                                              MEMBER-I                                      PRESIDENT