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        Companies Law

        2013 (12) TMI 51 - AT - Companies Law

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        Warranty representation not unfairly misleading where explanatory manual clarified duration and no deception or suppression was proved. A brochure claim of 'Lifetime Warranty' for kitchen chimneys was not held to constitute an unfair trade practice where the owner's manual explained the ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Warranty representation not unfairly misleading where explanatory manual clarified duration and no deception or suppression was proved.

                                A brochure claim of "Lifetime Warranty" for kitchen chimneys was not held to constitute an unfair trade practice where the owner's manual explained the warranty as lasting 12 years. The record showed no suppression of the manual, no refusal of access to it, and no evidence of misrepresentation of the product's standard, quality, usefulness, or warranty, or of any intent not to honour it. In the absence of oral evidence that customers were deceived or that the omission of the product's life span created a materially misleading representation, no unfair trade practice under section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 was established.




                                Issues: Whether the brochure and warranty representation in relation to kitchen chimneys amounted to an unfair trade practice under section 36A of the Monopolies and Restrictive Trade Practices Act, 1969.

                                Analysis: The allegation rested on the use of the expression "Lifetime Warranty" and the claim that the life span of the product was not disclosed. The material on record showed that the warranty was explained in the owner's manual as lasting for 12 years, and there was no evidence that the respondent had suppressed the manual, refused access to it, or misrepresented the product standard, quality, usefulness, or warranty with any intent not to honour it. No oral evidence was led to show that customers were deceived or that the alleged omission created a materially misleading representation.

                                Conclusion: The complaint did not establish any unfair trade practice under section 36A, and no interference was warranted.

                                Ratio Decidendi: A warranty statement is not materially misleading where the explanatory material clarifying its duration is available and no evidence shows deception, suppression, or an intention not to honour the warranty.


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