• Walking away from annual maintenance contract

Sir, I bought a security system from Eureka Forbes in 2010 and have been paying Annual maintenance contract  every year ever since. It has been malfunctioning off and on, their service response has been indifferent: visits after several phone calls etc. The service engineer now says, verbally, that they stopped importing  this make 5 years ago, that they have no spare parts, and that they have to replace the unit with another make, at our cost, about Rs. 35,000. They have offered a buy back for a petty Rs. 5000 for the old system.

Note: they did not give any notice till date of the said discontinuation.

My question no. 1: Can a company walk away  from repairing it during the pendency of a running AMC on the pretext of discontinuation of the existing model citing their “helplessness” in procuring spares? 

Question 2: in the presence of a running AMC, is it not my right to demand that they replace it at their own cost if they cannot repair the existing unit?

Thanks
Dr T S Rao
Asked 8 months ago in Business Law from Hyderabad, Telangana
Religion: None
1, Well there seems to be clear deficiency of service for which you can file case in consumer forum wherein you apart from claiming refund can demand damages and compensation as well.
2. For replacement you have to refer to the AMC itself.
Devajyoti Barman
Advocate, Kolkata
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Then claim replacement as well while filing case beofre the consumer forum
Devajyoti Barman
Advocate, Kolkata
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1) company is bound to carry out necessary repairs during AMC . it is company responsibility for arranging spares 

2) you cannot demand replacement with new unit . only repairs to existing unit 
Ajay Sethi
Advocate, Mumbai
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1220 Consultations
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1) company cannot demand that you buy a new unit 

2) if spare parts were not available company should not have renewed the AMC 



3) file complaint before consumer forum for deficiency in service against the company and seek orders to direct company to provide necessary spare parts and carry out repairs of the security system 
Ajay Sethi
Advocate, Mumbai
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Stopping import of a product does not give liberty to the company to abdicate its duty to provide customer support in  respect of those pieces that it has already sold. The conduct of company amounts to deficiency in services, which is actionable before consumer forum. You can thus issue a legal notice to the company and then move the consumer forum to seek binding directions to the company to repair the product and also pay compensation for the defect and delay,
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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My question no. 1: Can a company walk away  from repairing it during the pendency of a running AMC on the pretext of discontinuation of the existing model citing their “helplessness” in procuring spares? 

It is an irresponsible reply by the company and it can be considered as illegal act also.





Question 2: in the presence of a running AMC, is it not my right to demand that they replace it at their own cost if they cannot repair the existing unit?

AMC is for maintenance only and not a guarantee for replacing the worn out product or for a product which has no guarantee. 

T Kalaiselvan
Advocate, Vellore
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127 Consultations
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)Under such circumsatnaces of "non intimation of actual facts" by the company, can they still demand that I buy a new system at my cost to replace the existing system?
D) What if the so called new system too is discontinued in a couple of years?

Certain facts are to be accepted rather digested.  If the company keeps servicing the sold products alone, it cannot expand its business. The fact that the companies are modifying their own products periodically is not a open secret alone but a widely known fact.
If you are not satisfied with the service of the company you ma issue a legal notice based on the conditions and terms of AMC or other buying conditions and terms after which you can drag them to the consumer forum.
T Kalaiselvan
Advocate, Vellore
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if it happens during the warranty period then company is boumd to repair it and make it such a operational condition that it can work properly. 

if there is any deficiency you can file a case before the consumer forum. consumer is not bound to buy another second hand machine in subsistence of warranty period. 

it machine is required to be changed then cost shall be beared by the company. 
Shivendra Pratap Singh
Advocate, Lucknow
2760 Answers
41 Consultations
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