• A customer made police complaint cheating case for refund of a machine after using it for 6 months.

Our company is based in coimbatore. A customer from Chennai bought one furnace in Jan 2021 and was using it for 6 months. He placed order for another furnace in July 2021 and paid 10% advance for the second one. Because of Covid lockdown issues we could not deliver the order on time. We stopped responding to customer after he went abusive with our staffs. Then he cancelled the order and asked for refund of advance payment. We accepted the cancellation and fully refund the advance payment.

The customer sent a legal notice asking for full refund for the first furnace Which he was using for 8 months citing that it is not performing as per his expectation. There was not contract/ agreement officially made for the performance guarantee or for any refund signed during order finalization. 

Now he made a police complaint for cheating case against the owner of our company. 

We received a call from police station that they have received court direction to investigate and file FIR. 

Complaint made in Chennai, our company is in coimbatore.

Kindly advice on how to close this case.
Asked 1 year ago in Consumer Law

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11 Answers

In giving circumstances, no case of cheating is made out. The dispute is civil in nature and more related to consumer for which only civil court has power to adjudicate. As such selling of machine against a price is a business transaction  and criminality is involved. However, contents of complaint is required to he looked into to suggest appropriate remedy. Complainant might have approach court under section 156 (3) cr.p.c. under which court can direct the police to investigate the matter and if police find that any crime is committed then police report court accordingly and also register FIR. Under the given circumstance company can challenge the order by way of revision and can also approach high court. Named accused should also apply for anticipatory bail. 

Siddharth Srivastava
Advocate, Delhi
1348 Answers

As you have been summoned by the police, meet them and explain the facts clearly - that you had no intention to cheat, being genuine industrialists; there was no performance warranty of which the customer was aware while purchasing the first furnace itself; the customer had used the furnace for 8 months with full satisfaction; you have refunded the entire advance purchase price of the second one; you could not fulfil your delivery commitment only owing to COVID; it is only a civil dispute and not a criminal offence. Better engage a competent lawyer and request him/her to accompany you to the police station. If the police ignore your case and file an FIR, move to quash it in consultation with your counsel.

Swaminathan Neelakantan
Advocate, Coimbatore
2914 Answers
20 Consultations

You have to appear before the concerned police station and give the details of what has happened in this regard, if the police is not convinced then you can obtain AB against the FIR registered by police and challenge the false case properly in the trial proceedings.

Actually you have full merits and evidences in your side, hence there is nothing to worry on this.

Do not rush to get the FIR quashed, becasue without the charge sheet filed, the high court may not entertain the quash petition

T Kalaiselvan
Advocate, Vellore
87138 Answers
2339 Consultations

You need to take anticipatory bail in sessions court having jurisdiction of that police station. You can also go for quashing of the complaint based on same being civil in nature 

Prashant Nayak
Advocate, Mumbai
32479 Answers
201 Consultations

In your statement raje the plea that foods were delivered to customer and he has used it for 8 months 

 

2) that customer has not been deceived and no cheating case is maintainable 

 

3) at most it is a civil dispute 

Ajay Sethi
Advocate, Mumbai
96937 Answers
7821 Consultations

Based on the information provided, it appears that the customer is dissatisfied with the performance of the first furnace and is seeking a full refund. However, you mentioned that there was no formal contract or agreement regarding the performance guarantee or refund terms.

 

Here are a few steps you may consider taking to address this situation:

 

Engage an attorney: It is important to consult with a lawyer who can guide you through the legal process, assess the merits of the customer's claim, and provide advice on how to proceed.

 

Review documentation: Gather all relevant documents related to the transactions with the customer, including any communication, invoices, receipts, and proof of refund for the second furnace. This documentation will help your attorney understand the situation better and build a defense strategy.

 

Respond to the police complaint: Cooperate with the police investigation and provide them with all the requested information. Your attorney can guide you on how to respond appropriately and professionally.

 

Prepare a defense: Based on the information provided, the absence of a formal agreement regarding performance guarantees or refunds may work in your favor. Your attorney can help you build a strong defense and present your case effectively.

 

Negotiation or settlement: Depending on the advice of your attorney, you may consider negotiating with the customer to reach a mutually agreeable resolution. This could potentially help in avoiding lengthy legal proceedings and associated costs.

 

 

 

Anik Miu
Advocate, Bangalore
10168 Answers
120 Consultations

- Firstly , under the given circumstances mentioned by you, no criminal case is made out , as by rejecting his request of refund the amount of first used furnaced , you have not committed any offence. 

- Further, if there was no guarantee on the furnace for more than 8 months was given by you in the form a written document , then you are not bound to refund the amount. 

-  Further, even if there was a clause for the refund , then also the customer can lodge a complaint before the consumer forum only and no alternative is there to file a complaint before the court for lodging an FIR. 

- Further, the police should issue a notice to you under section 41A for giving your statement , and the police having no power to call for the same , if there is a court direction . 

- However, you can send/ submit  your reply to the said police after mentioning all the facts 

- No need of worry , there is no ground for lodging an FIR . 

Mohammed Shahzad
Advocate, Delhi
14513 Answers
221 Consultations

Ask them to provide copy of FIR.

It may be a fake call as the present matter is of consumer dispute and not a criminal offense.

Further, ordering second machine it self suggest quality of 1st machine. It all fake call.

Yogendra Singh Rajawat
Advocate, Jaipur
22991 Answers
31 Consultations

Hi, If the FIR was registered then you have to challenge the same in High Court for quashing of the FIR.

 

[2] Further, verify the section involved in the FIR and better you can take anticipatory  bail and then move to High Court for quashing the FIR.

Pradeep Bharathipura
Advocate, Bangalore
5611 Answers
338 Consultations

Don't panic, it is a commercial transaction.

Even if police summons for an enquiry, check through your legal adviser.

Even if it is defective, he has a remedy before the consumer forum and doesn't attract the offence of cheating. 

Rajaganapathy Ganesan
Advocate, Chennai
2191 Answers
8 Consultations

There is no cheating at all . Police has no right to investigate this issue. but it depends upon how your consumer taken his stands and lodged the complaint.   

Its better to approach the police through Good Lawyer to close the complaint otherwise they used to harass and there is chance to file FIR too. If you receive call again from the police ask them to send police summons otherwise no need to appear in person.

 

 

S Shree Narasimhachaary
Advocate, Chennai
21 Answers
4 Consultations

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