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TMI Blog2006 (2) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... e are of the opinion that no case has been made out for interference with the impugned judgment. - 1273 of 2006 - - - Dated:- 24-2-2006 - S.B. Sinha and P.K. Balasubramanyan, JJ. [Judgment per : S.B. Sinha, J.]. - Leave granted. 2. The appellants supplied EPABX telephone system to the respondent in the month of March, 1990. The said system was installed in the office of the respondent on 18th March, 1990 at a cost of Rs. 1,87,599/-. In terms of the contract of sale entered into by and between the parties, a warranty for a period of 1 year was issued for the said equipments. The appellants during negotiations agreed that a service centre at Vishakhapatnam would be opened for convenience of the said office and other customers. The said assurance was categorically given in the offer of the respondent dated 14-2-1990. At the relevant time furthermore approval of the Telecommunication Department for installation of the EPABX system in the respondent's office had not been given. The respondent was informed on a query made in that behalf by the Chief General Manager of the Telecommunication Department, that the EPABX system supplied by the appellants was not m department's app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not being received in the reception, resulting in snapping/cutting of the communication. Allegedly, the respondent had to seek help of another firm for keeping the system operational. The appellants, however, were insisting on 'annual maintenance services' for attending to the said complaints of the respondent to which the latter did not agree. 6. On the aforementioned allegations a complaint petition was filed before the State Consumer Disputes Redressal Commission, Hyderabad. The said complaint petition was marked as CD 86/92 wherein it was prayed that a direction be issued for repayment of full cost of EPABX system amounting to Rs. 1,87,559/-. 7. In the said proceedings the contention of the appellants, on the other hand, was that during the period of warranty and even thereafter all the complaints had been attended to. The appellants could not maintain a separate service centre at Vizag as the proposal became highly uneconomical and disproportionate to the installations in the region and, thus, they had to cater to the service requirements from their Hyderabad Office with prior intimation to the appellants. The said services had been rendered even on 14-5-91, 14-7-91, 19-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xious to enter into a service contract rather than to see that the system sold and supplied by it works satisfactorily." 10. The appellants, in term of the said findings, were directed to refund a sum of Rs. 1,87,559/- with interest @ 12% from the date of the filing of the complaint till the date of payment after taking back the system supplied by it. 11. An appeal preferred by the appellants herein before the National Commission was dismissed by reason of the impugned judgment. 12. Mr. K.V. Mohan, learned counsel appearing on behalf of the appellants in assailing the said orders of the State Commission and the National Commission submitted that in terms of die contract of warranty, the appellants were required to maintain the system free of cost only for a period of one year and it was not at all necessary for them to provide free services and/or to maintain the system thereafter. As the liability of the appellants was to maintain the system only during the period of warranty, it was argued, the State Commission acted illegally in directing the appellants to pay the prices thereof with interest. It was, furthermore, submitted that the breach of contract of warranty would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service." 17. The provisions of the said Act are in addition to and not derogation of the provisions of any other law. 18. Section 14 of the Act provides for powers of the Forum to issue an order to the opposite party directing him to do one or more of the things satisfied therein including : "(b) to replace the goods with new goods of similar description which shall be free from any defect; (c) to return to the complainant the price, or, as the case may be, the charges paid by the complainant...." 19. The State Commission as well as the National Commission, which are created under the said Act, exercise special jurisdiction. 20. The defects in the system pointed out by the respondent in the instant case started within the period of warranty. As noticed hereinbefore, certain breaches of contract of supply are admitted. 21. Telephone is a means of communication. The communication system was required to be run effectively and efficiently by the appellants having regard to the statutory duties they were required to perform. 22. The deficien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the representation of the Appellant should have been treated as warranty for an expended period. Even in a case where the goods are accepted, it is well known, the buyer will have a remedy for damages for the breach of it. 27. Section 12 of the Sale of Goods Act reads as under : "Section 12 - Condition and warranty — (1) A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty. (2) A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated. (3) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated. (4) Whether a stipulation in a contract of sale is a condition or a warranty depends, in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract." 28. Although in terms of sub-section (3) of Section 12 no right accrues to a purchaser to reject the goods on breach of stipulation of warranty, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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