The Hindu Business Line : MRTPC directive to Siemens

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has directed Siemens India Ltd to pay a compensation of Rs 54 lakh to a polypropylene multifilament yarn manufacturing company in Surat for providing a sub-standard UPS system.

Summet Industries Ltd (SIL) had placed an order for a UPS where it was mentioned that the system would be imported from Siemens Germany.

However, instead of importing the UPS from Germany, Siemens decided to manufacture the same at its workshop in Nashik.

Only a few components were imported from Germany; the remaining parts were indigenously manufactured.

Furthermore, there was also an agreement that the supplier would demonstrate full load tests of the system, which Siemens could not carry out for want of facilities at its end.

Siemens, it appears, also did not deliver the goods in time though the applicant clearly mentioned that "time is the essence of the contract."

`sub-standard UPS'

SIL said that Siemens provided a sub-standard UPS system, which did not work in spite of the fact that it was fixed several times and that ultimately Siemens found the system defective.

Siemens later offered to replace the system with a new unit of 330 KVA but problems persisted.

The Commission, in its findings, said: "The respondents (Siemens India) have indulged in unfair trade practice and it has resulted in loss and damage to the applicant (Summet Industries) as his plant could not work due to the supply of defective system by the respondent."

In its order, it directed Siemens to pay a compensation fee of Rs 54,13,362 along with an interest of 6 per cent a year from the date of application (in 1993) till the date of payment to SIL.

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