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Firm to pay Rs 4 lakhs for violating contract

Firm to pay Rs 4 lakhs for violating contract
The consumer forum had ordered a city-based lift firm to pay Rs 4 lakhs to one of its customers for not installing lift in his premises in time. The firm had made the customer pay 82 per cent of the total cost in advance.

Observing that the act of firm, Seema Elevator Services, was in violation of the contract, the East District Consumer Disputes Redressal Forum held it guilty of providing deficient service by arbitrarily breaking the contract.

'The opposite party (Seema Elevator Services) after receiving almost 82 per cent of the total amount did not complete installation of the lift and make the same workable. The action of the firm prima facie appears to be in violation of contract which proves that it was deficient in providing the services,' the forum said.

The forum's order came on a plea by Laxmi Nagar resident Shubhash Chand Jain, who said he had entered into an agreement with the firm for installation of the lift, with a capacity of four persons, in his premises for a sum of Rs 4.25 lakhs.

Jain alleged despite paying 82 per cent of the total cost i.e. Rs 3.5 lakhs, the firm did not complete the installation, while the lift given top him was of lesser capacity and made up of inferior quality material.

The firm denied the allegations as well as existence of a contract between the two and had said the work was delayed as Jain had not paid an amount of Rs 88,500 for completing the work.

The forum presided by Narendra Kumar rejected the stand, saying there is a document on record, which appears to be a contract between the parties and added that after receiving 82 per cent of total cost the firm was bound to finish the work without demanding any additional amount.

'In the instant case we feel that the firm has arbitrarily broken the contract and as such is liable to refund the amount of Rs 3.5 lakhs,' the forum said and added that Jain is also entitled to a compensation of Rs 50,000.
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