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Saturday, December 5, 1998

AC firm reneged on deal

EXPRESS NEWS SERVICE  
NEW DELHI, December 4: A consumer court has sentenced the managing director of an airconditioning firm to one year's imprisonment for his failure to honour a sale agreement and refund the payment made by a consumer.

Asking the police today to issue non-bailable warrants against Anil Jain of Vardhman Airconditioning, the court directed on Wednesday that the accused be tried under Section 27 of the Consumer Protection Act (CPA) for breach of trust and deficiency in service.

Through an earlier order in March, the court had directed Jain to refund Rs 35,000, along with penalty and an 18 per cent annual interest, to Dr D.P. Malhotra who had paid him the amount way back in 1994 for purchasing two ACs.

In his complaint before the Consumer Disputes Redressal Forum-III in Janakpuri, Malhotra, a resident of Meenakshi Garden, had alleged that after receiving most of the payment for two airconditioners in April, the company delivered only one in June and that too a used one. This, despite the fact that the firm had promised to sell new ACs at the rate of Rs 21,000 each.

The company then refused to either change the old AC or refund the amount. As the respondent failed to appear before the court during repeated hearings, the court decided the case `ex-parte' and directed Jain to comply within a month.

Even after eight months the respondent failed to comply with the order or come up with a convincing reply to the accusations, prompting the court to finally order for his arrest.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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