Wrong manufacturing date and can leakages
This is in respect to an Energy Drink distribution we took up for a known brand.
1. The product had a wrong manufacturing date wherein instead of the MFG date it had Expiry date against the MFG Date. i.e MFD: 01.02.2017, whereas the can says, expiry 2 years from the date of Manufacture. We requested for the principal importer to take it up with the relevant Authorities and get the required permissions to place stickers to rectify the printing error. In Mangalore, we cannot place stickers on Price and Dates without required permissions.
2. The product packaging material is of very poor quality. The beverage is leaking where it is stored. Secondly there are some cans which are either under-filled or the beverage is evaporating, But there are no visible signs of leakage in these cans.
3. The principal importer is not ready to compensate for these damages which are over 300 cans (1 case =24 cans) on the contrary he is asking to claim insurance whereas the insurer insures only for theft or fire.
4. We have made advance payment for the entire stock and due to this issues we can not sell the product. We need to reclaim a full refund as well as the importer to collect the goods from us at his cost for sending un-saleable product.
So kindly advice what would be the right action to be taken in this scenario. Apparently we are based in Mangalore and the principals in Delhi.
Asked in Business Law from Mangalore, Karnataka
1) there must be clause in your contract that complaints regarding quality have to be made within 15 days from date of receipt of goods .
2) Return the defective goods . you have to issue legal notice to the importer that goods supplied are defective as cans are under filled or leaking etc
3) in said notice seek refund of money paid with interest
4) if seller refuses to arrive at an amicable settlement you will have to file suit to recover money paid by you with interest
1. File a complaint case before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of the advance paid with interest, taking back of the said cans within 7 days and/or paying gidown/store rent, damage and cost,
2. It is a good case to win.
What are the terms and conditions of the sale contract. You can always return the defective products to the importer. One cannot be expected to sell the defective product to its customers.You find out the clause which will entitle you to return the defective products within a stipulated time of it receipt on finding it defective. You can issue a legal notice to the distributor mentioning the defect and instruct him to take back the products and refund your money with interest. If he is not agreeing for an amicable settlement, you may file a money recovery suit against him in the jurisdictional court. It can be a fittest case for consumer deficiency too hence you may approach a consumer forum too.
1. You have two remedies-Either to cancel the contract with the principal importer for breach of contract and seek compensation for the loss suffered, or file a lawsuit against it to seek judicial directions to him to honour the contract so that you can sell the product.
2. Before going to court issue a lawyer's notice to the importer.
I had returned the material after they asked me to since the date was a major issue as the manufacturing date was 02.03.2017 while it had to be 02.03.2015. I was however not made the refund and so I sent the importer a legal notice for which he has sent a reply saying that we are making false claims and everything that we mentioned in our notice is fabricated and obnoxious. And he is not willing to pay my monies back. I made a complaint to the Police station so they have asked me to file a Cheating/fraud/breach of trust case against the importer. He is on the contrary threatening me that he will file a defamation case against me because Karnataka Police actually visited his office in Delhi.
Now, my question is 1. How do i follow up in this situation and 2. what are the chances of recovering the money for the material that was sent back for the 30 cases of beverage and the damaged/leaking 38 cases? Each case contains 24 cans.
Asked 6 months ago
1) you have good chance of recovery of your money .
2) file criminal complaint of criminal breach of trust , cheating under section 406 , 420 of IPC
3) also file summary suit under order XXXVII of CPC for recovery of your money with interest
1. If distribution of the health drinks of the said party is your only source of income, then you can file a consumer case as suggested in my earlier post.
2. It was a mistake to return the material since after the return you have no evidence to prove which they have taken advantage of.
3. Do not give any cognisance to his threats and pursue with police about your complaint.
4. If police does not act, you can file a writ Petition before the High Court against police for its inaction seeking remedy
5. You can also file a damage suit claiming refund of the money paid by you with interest, damage and cost if you can not prove to be a consumer as per the Act before the Consumer Forum.
1. Let him file defamation case, it is not maintainable. If at all he is not at fault then let him prove it before court and gt the case dismissed after which he can think of filing any case.
2. You can file a consumer case for the deficiencies and compensation