MRTPC rules against Seimens, says pay up for faulty UPS to yarn Co Summet Ind
02 May '06
2 min read
The Monopolies and Restrictive Trade Practices Commission (MRTPC) has ordered Siemens India Limited to compensate damages worth Rs55 lakh suffered by a Surat-based yarn producer to whom faulty power back-up system was supplied.
The MRTPC has also slapped an interest of five percent on Rs55 lakh from the date of filing of the suit on Siemens India Limited.
Justice B K Rathi, Chairman of the Commission, holding company culpable observed in his order that, "We accordingly find that the respondents (Siemens) had indulged in unfair trade practices, which resulted in loss and damage to the applicant as his plant could not work due to the supply of defective system."
Siemens had entered into a contract with Surat-based yarn producer Summet Industries to provide UPS (uninterrupted power supply) of 4x120 KVA capacity in 1993.
Siemens was to provide a totally imported equipment manufactured by its parent company in Germany as per the deal.
In its place, Siemens installed a component manufactured at its Nashik plant.
The component started malfunctioning immediately following its installation and the crisis persisted in spite of being repaired several times by company representatives.
Finally Siemens agreed to replace the faulty system with a new unit of 330 KVA but the troubles still persisted.
Finally, Summet Industries requested Siemens to reimburse Rs54 lakh it had spent for the UPS, which was rejected by Siemens.
News 
marketing@alchempro.com
