Kerala businesswoman’s Rs 25 lakh bottling machine ‘fails’ to work, wins replacement, Rs 75,000

“When the complainant purchases machinery with the intention to enhance her business facilities by availing financial assistance, such purchase is made with great expectation as to betterment of their lifestyle. In the present case, the complainant was left suffering,” the commission said on July 17, holding that the manufacturer had failed to provide adequate post-sale support.

The commission, however, stopped short of ordering a refund of the machine’s purchase price after an expert appointed by it found that the equipment itself did not suffer from any manufacturing defect. Instead, it concluded that improper installation, faulty programming, poor calibration and inadequate after-sales service had rendered the machine unusable for over three years.

Machine bought to reduce labour costs

According to the complaint, proprietor Sajitha E G purchased an automatic four-head volumetric bottle-filling machine, an automatic screw-cap sealing machine and related accessories from Abhilash Industries on June 27, 2023, for Rs 25,01,600. The equipment came with a one-year warranty and was purchased with financial assistance from a bank.

The entrepreneur told the commission that the manufacturer had assured her the equipment could fill 1,000 litres of concentrate every hour, allowing her to reduce her workforce by five employees. Instead, the filling levels were inconsistent, bottles overflowed, caps were not sealed properly and the machinery failed to perform as promised from the very first day.

Claiming that the malfunctioning equipment caused heavy financial losses and mental agony, she sought a refund of the purchase price along with reimbursement of bank interest, labour expenses and damages.

Abhilash Industries denied the allegations and argued that the complaint was not maintainable because the machinery had been purchased for commercial purposes. It also maintained that there was no manufacturing defect and claimed its personnel had trained the complainant’s operator and provided after-sales assistance whenever required.

According to the company, the problems arose because the complainant’s staff was not properly equipped to operate the machinery. It further stated that it remained willing to rectify any genuine issues with the equipment.

Expert inspection

• To determine the actual cause of the malfunction, the commission appointed an expert commissioner to inspect the machinery.
• During testing, only three out of twelve bottles were filled correctly, while six overflowed and the remaining bottles were only partially filled.
• The capping mechanism also repeatedly jammed during operation. The expert concluded that these were not manufacturing defects.
• Relying on the expert’s findings, the commission held that while the machinery itself was not defective, the manufacturer’s after-sales service had been deficient.
• The commission also rejected the manufacturer’s objection that the complaint was barred because the purchase was made for a commercial activity.
• The commission noted that the machine had remained idle for over three-and-a-half years despite being purchased through bank finance, leaving the entrepreneur without the benefits she had expected from the investment.
• Since the expert ruled out any manufacturing defect, the commission declined to order a refund of the purchase price, bank interest or labour costs.

It directed the manufacturer to replace the machine with an identical one within 45 days, pay Rs 50,000 as compensation for deficiency in service and Rs 25,000 towards litigation costs, taking the total monetary relief to Rs 75,000.

The commission further ordered that if the directions are not complied with within 45 days, the complainant would also be entitled to a solatium of Rs 1,000 per month or part thereof from the date of the order until compliance.

Consumer takeaway

Buying machinery for your own livelihood or small business does not automatically strip you of consumer rights. If the product fails because of poor installation, calibration or inadequate after-sales service even without a manufacturing defect you can seek replacement, compensation and litigation costs under the Consumer Protection Act.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Kerala:1800-425-1550) or call theNational Consumer Helplineat1915for assistance.