UNION OF INDIA Vs. SEPPO RALLY OY

JUDGEMENT

(1.) Appellant Union Bank of India is aggrieved by the order dated June 18, 1996 of the National Consumer Disputes Redressal Commission ('National Commission' for short) passed on appeal from the order, dated July 21, 1993 of the State Commission of Delhi.

(2.) State Commission had allowed the complaint of the first respondent M/s. Seppo Rally OY, a foreign company based in Finland against the Union Bank of India, the appellant, directing the Bank to pay 11,234 with interest at the rate of 15% to the first respondent from May 27, 1992, the date when the complaint was filed. Bank was also burdened with cost of Rs. 2,500/-. The National Commission and the State Commission have been constituted under S. 9 of the Consumer Protection Act, 1986 (for short the 'Act'). State Commission is established by the State Government in the State and the National Commission is established by the Central Government. Appeal filed by the Bank before the National Commission under Section 19 of the Act against the order of the State Commission was dismissed. Now it was directed that the complainant, the first respondent, is entitled to an amount of Rs. 3,01,103/- with interest at the rate of 15% per annum from March 5, 1991 till the date of payment. National Commission said that the complainant was entitled to 37,336 whereas it was paid only 29,062 on March 4, 1991. An amount of 8,304 was paid less which is equivalent in Indian currency of Rs. 3,01,102 as on March 4, 1991.

(3.) Two contentions have been raised by Mr. Dushyant Dave, senior counsel appearing for the Bank:(1) there was no deficiency in service as defined in clause (g) of Section 2 of the Act and (2) Delhi State Commission had no jurisdiction to entertain the complaint as no cause of action arose within Delhi, Central Office of the Bank was at Bombay and the branch office which issued the Bank Guarantee, subject-matter of the complaint, was at Saharanpur in the State of U. P.