• 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 1 year ago 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 
Ajay Sethi
Advocate, Mumbai
23234 Answers
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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.
Krishna Kishore Ganguly
Advocate, Kolkata
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230 Consultations
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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. 
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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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. 
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
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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 
Ajay Sethi
Advocate, Mumbai
23234 Answers
1219 Consultations
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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.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
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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
T Kalaiselvan
Advocate, Vellore
14008 Answers
127 Consultations
5.0 on 5.0

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