Mumbai: NCDRC Rejects Claim Of Dhariwal Industries Siting Compensation For Loss of 350 Cartons Of Manikchand Gutkha

Mumbai: The National Consumer Dispute Redressal Commission (NCDRC) has rejected the claim of Dhariwal Industries, the manufacturer of Manikchand Gutkha, who had sought compensation for the loss of his 350 cartons of gutkha in 2010.

The commission in its order copy held that the complainant company had entered into a commercial business with the transporting agency and thus the company does not fall under the definition of consumer. The commission has called this business a ‘commercial endeavour’, and has turned down the plea.

As per the complainant copy, Dhariwal company in December 2010, had approached the East India Transport company for dispatching its consignment of 350 carton’s of Gutkha, worth Rs 28,72,142, to its buyer in Kolhapur. Accordingly the transport agency had booked a lorry for the same.

However the consignment did not reach its destination. When inquired the company was informed that the entire consignment was robbed , and thus it did not reach its destination. Meanwhile as the entire transportation was insured, thus the company was able to recover its losses through the insured money.

However even after receiving the insurance money, the company had approached the consumer forum for its loss, while making the insurance company as a Subrogee. In legal terms , a Subrogee is someone who has acquired rights, on behalf of others, by paying the other person’s debts or expenses and later recovering them from the third party.

The case was first filed before the Maharashtra State Commission, where the claim was passed and the Agency was asked to pay the amount to the company. Aggrieved by the State Commission’s order’s the agency had filed an appeal before the National commission, contesting the fact that the entire deal was a commercial one and thus the company cannot get the benefit under the umbrella of being a consumer and thus neither can the insurance company get the same.

The National commission was convinced by the lawpoints put forth by the transport agency, thus repudiating the claim.