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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 ..... hat behalf by the Chief General Manager of the Telecommunication Department, that the EPABX system supplied by the appellants was not m department's approved list. Such approval, was, however, granted only on 25-3-1991. 3. On or about 13-9-1990 a letter of complaint was issued by the complainant to the appellants herein inter alia stating that : "It is registered (sic) to note that the 32 instruments supplied by you in the month of March, 1990 are not working properly. Main drawbacks are as under : a. Getting wrong numbers is a frequent complaint. b. The conversations are being interrupted and we hear some music and the conversations stop. c. Instruments with key pad lock system supplied are not at all working with the result that instruments of the Telecom Department has been fixed removing the instruments supplied by you. You may recall that at the time of submitting the tender, it was assured that you will supply fault-less EPABX and intercom facilities. However, EPABX and intercom facilities supplied by you are not working p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hly 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, 19-8-91 and 18-9-91 without any service charges and although, the respondent did not agree to have an annual maintenance contract for service thereof after the period of warranty expired. As during the period of warranty, the respondent got the system attended to by the local mechanic, the same constituted breach of the contract of warranty. 8. The parties filed affidavits before the State Commission in support of their respective cases. 9. By a judgment and order dated 23-2-2001 the State Commission arrived at the following findings : "We shall now consider whether the system installed in the office of the complainant in the month of March, 1990 was working as expected. A reading of Exs. A-1 to A-3 show that the system was giving poor performance and the complainant was trying frantically requesting for the assistance of a mechanic. Ex. A-2 letter dated 16-4-1991 shows even within a month after its installation there is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 enable the appellants to reject the entire contract and claim the price of goods supplied, particularly, when in the instant case the period of warranty had expired. 13. Mr. Gopal Subramanium, learned Addl. Solicitor General, on the other hand, would support the judgment urging that such a relief could be granted in terms of Section 14 (1) (c) of the Consumer Protection Act, 1986. The learned counsel drew our attention to the statements made in paragraph 7 of the written statement wherein the appellants had categorically admitted that in terms of the contract of supply, no service centre was opened. Such service centre came to be opened only on 21st September, 1990 i.e. after the complaint was made by the respondent and that too was discontinued. 14. Before adverting to the rival contentions raised herein we may notice certain admitted facts. The parties entered into a contract of supply of EPABX system subject to the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 deficiencies in EPABX system supplied by the appellants were such as were required to be attended to immediately. If the appellants had not been able to attend thereto immediately, there would be a 'deficiency of services' on the part of the appellants as immediate attention to such complaints was a part of the contract. 23. The State Commission as well as the National Commission have arrived at findings of fact as regard nature of deficiencies of service complained of by the respondent in terms of the provisions of the contract. If such breaches of conditions of warranty admittedly had taken place during the period of warranty, no exception can be taken to the judgment and order passed by the State Commission as also the National Commission. 24. Appellant had all along been aware that the system installed by it had not been functioning properly. On its own showing, it had been attending to the complaints made by the Respondent relating to the fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. 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 would not mean that the extent of damages cannot be equivalent to the price of the goods inasmuch as such a power has specifically been conferred upon the Commission. 29. It is true, where a stipulation in a contract of sale is a warranty, its breach may give use to a claim for damages but not to a right to reject the goods and treat the contract as repudiated, but where a stipulation in a contract of sale is a condition, its breach may give rise not only to a claim for damages but also generally to a right to treat the contract as repudiated. [See Halsbury's Laws of England, Fourth Edition Reissue (41) Para 64]. 30. In Ghaziabad Development Authority v. Balabir Singh [2004 (5) SCC 65] this Court opined that under the law, the Consumer Protection Act, 1986 has a wide reach and the Commission has jurisdiction even in cases of service rendered by statutory and public authorities, holding : "..The word compensation is of a very wide connotation. It m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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