{"id":241528,"date":"2002-05-30T00:00:00","date_gmt":"2002-05-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mahalaxmi-oxygen-pvt-ltd-vs-titan-engineering-co-pvt-ltd-on-30-may-2002"},"modified":"2018-06-05T14:30:22","modified_gmt":"2018-06-05T09:00:22","slug":"mahalaxmi-oxygen-pvt-ltd-vs-titan-engineering-co-pvt-ltd-on-30-may-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mahalaxmi-oxygen-pvt-ltd-vs-titan-engineering-co-pvt-ltd-on-30-may-2002","title":{"rendered":"Mahalaxmi Oxygen Pvt. Ltd. vs Titan Engineering Co. Pvt. Ltd. on 30 May, 2002"},"content":{"rendered":"<div class=\"docsource_main\">National Consumer Disputes Redressal<\/div>\n<div class=\"doc_title\">Mahalaxmi Oxygen Pvt. Ltd. vs Titan Engineering Co. Pvt. Ltd. on 30 May, 2002<\/div>\n<div class=\"doc_bench\">Bench: D W Member, B Taimni<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>  J.K. Mehra, J. (Member)  <\/p>\n<p> 1. The Complainant, M\/s. Mahalaxmi Oxygen (Pvt.) Ltd., a<br \/>\nPrivate Limited Company is engaged in the production of natural<br \/>\ngases. It had applied for a loan of Rs. 71 lakhs from the Gujarat State<br \/>\nFinancial Corporation which was sanctioned by the said Corporation<br \/>\nand one of the conditions of the loan was that the Complainant would<br \/>\nbe given subsidy of Rs. 20 lakhs provided the Complainant starts its<br \/>\nproduction within the stipulated time i.e. by 15th March, 1995 and the<br \/>\nComplainant had to apply for the subsidy prior to 15.8.1995. Knowing<br \/>\nthe intention of the Complainant to go in for production of industrial<br \/>\ngases and to establish a plant at Bhavnagar for that purpose, the<br \/>\nOpposite Party, M\/s. Titan Engineering Co. Pvt. Ltd. had approached the<br \/>\nComplainant to provide necessary assembled parts of the plant. In<br \/>\nresponse to that proposal, the Complainant entered into a contract with<br \/>\nthe Opposite Party on 13.12.1994 for providing service regarding plant<br \/>\nand project on turn key basis.\n<\/p>\n<p>2. The consideration fixed for this transaction was Rs. 42.50<br \/>\nlakhs and one of the terms was that 40% of the consideration amount<br \/>\nshall be paid in advance. According to the Complainant, the Opposite<br \/>\nParty supplied machinery worth Rs. 12.87 lakhs on 20.1.1995 and some<br \/>\npart of the machinery worth Rs. 20 lakhs on 6.3.1995 and the remaining<br \/>\npart of the machinery was not at all provided thereafter, though the<br \/>\nagreed date before which the whole of the unit was t established was<br \/>\n31st March, 1995.\n<\/p>\n<p>3. The main grievance of the Complainant is that in spites of<br \/>\nhis writing many letters and making several visits to the Opposite Party<br \/>\nto have the project completed and commence production before the<br \/>\nstipulated date prescribed by the Financial Corporation in order to avail<br \/>\nthe subsidy, the Opposite Party did not take any steps in this direction,<br \/>\nand according to the Complainant he could start production only on<br \/>\n31.3.1995 and in the result, he could not avail the subsidy offered by the<br \/>\nFinancial Corporation. Complaining the deficiency in service the<br \/>\nComplainant claimed the following reliefs against the Opposite Party:\n<\/p>\n<p>   1. Rs. 20,00,000\/- \t\tTowards loss of subsidy suffered on account of<br \/>\n\t\t\t\tnegligence on the part of the Respondent<br \/>\n\t\t\t\tRespondent.\n<\/p>\n<p>2. \t\t\t\tRs. 5,29,773\/- Towards interest loss suffered by the<br \/>\n\t\t\t\tComplainant, i.e. the Complainant had to pay<br \/>\n\t\t\t\tthis amount to GSFC due to non production.\n<\/p>\n<p>3. Rs. 12,62,624\/- \t\tTowards non-usage of gas cylinders due to<br \/>\n\t\t\t\tlacuna on the part of the Respondent Complainant<br \/>\n\t\t\t\thad to suffer expenses of the same.\n<\/p>\n<p>4. Rs. 3,55,000\/- \t\tTowards interest at the rate of 18% p.a. on non-\n<\/p>\n<p>\t\t\t\tusage of cylinders.\n<\/p>\n<p>5. Rs. 1,27,000\/- \t\tTowards the cost of equipments purchased by<br \/>\n\t\t\t\tthe Complainant which the Respondent was<br \/>\n\t\t\t\tunder obligation to supply under the contract.\n<\/p>\n<p>6. Rs. 10,00,0000\/- \t\tcompensation for mental torture and<br \/>\n\t\t\t\tharassment.\n<\/p>\n<p>7. Rs. 10,000\/- \t\tFor correspondence, personal visits, telephone<br \/>\n\t\t\t\tcalls etc.<\/p>\n<p>8. Rs. 10,000\/- \t\tLegal fees.\n<\/p>\n<p>9.\t \t\t\tInterstrr at the rate of 18% on the above amounts.\n<\/p>\n<p>And \/ or  <\/p>\n<p>10. Rs. 47,20,000\/- \t\tmarket loss suffered.\n<\/p>\n<p>We have heard the learned Counsel for the Complainant.<br \/>\nWe have also gone through the Complaint very carefully. We are of the<br \/>\nopinion that it is not a fit case for us to go into the merits of the<br \/>\ncomplaint as we find that it was not a breach of contract as goods were<br \/>\nnot being acquired by the Complainant for his own survival by way of<br \/>\nself-employment. The Complainant is a Company registered under the<br \/>\nCompanies Act. So, there is no question of any individual initiating work<br \/>\nunder the self-employment scheme. This Commission had an occasion<br \/>\nto deal with such a situation in the case of Jaipur Metals &amp; Electrical<br \/>\nv. Lakshmi Industries, reported as II 1999 CPJ 602, wherein this<br \/>\nCommission, after considering all the pros and cons of the case, came<br \/>\nto the conclusion that in such cases the question of performance cannot<br \/>\nbe attributed to failure\/breach of contract of sale and supply of goods<br \/>\nand such disputes will not constitute a consumer dispute. It was for that<br \/>\nreason this Commission came to the conclusion that the alleged failure<br \/>\nof the opposite party to erect the plant cannot to deemed to be a<br \/>\ndeficiency in service under Section 2(1)(g) of the Consumer Protection<br \/>\nAct, 1986. For that reason, this complaint fails and is dismissed without<br \/>\nprejudice to the rights of the Complainant to approach civil court or any<br \/>\nother forum that he may choose.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Consumer Disputes Redressal Mahalaxmi Oxygen Pvt. Ltd. vs Titan Engineering Co. Pvt. Ltd. on 30 May, 2002 Bench: D W Member, B Taimni ORDER J.K. Mehra, J. (Member) 1. The Complainant, M\/s. Mahalaxmi Oxygen (Pvt.) Ltd., a Private Limited Company is engaged in the production of natural gases. It had applied for a loan [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-241528","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mahalaxmi Oxygen Pvt. Ltd. vs Titan Engineering Co. Pvt. 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