We have purchased machinery worth 10 lakh from Vahavanivati Machine Tools in Ahmedabad. The company is managed by Vikas.
1) This company will not manufacture any machines.
2) As per our purchase order, we informed him that we would pay 10% of the amount after machine installation. However, he agreed, so we paid the full amount. Now, he is refusing to provide free installation.
3) When we try to contact him, he does not answer our calls and has blocked our numbers.
4) He has not provided us with motors and some parts.
5) We personally went to load the machinery, and upon arrival, we discovered that he had not provided some parts and had used second-hand motors. We have already informed him via email that we will take legal action.
On his website, he advertises that he will manufacture and supply machines, but in reality, he only supplies them. Please advise on the next steps we should take.
From India, Bangalore
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1) This company will not manufacture any machines.
2) As per our purchase order, we informed him that we would pay 10% of the amount after machine installation. However, he agreed, so we paid the full amount. Now, he is refusing to provide free installation.
3) When we try to contact him, he does not answer our calls and has blocked our numbers.
4) He has not provided us with motors and some parts.
5) We personally went to load the machinery, and upon arrival, we discovered that he had not provided some parts and had used second-hand motors. We have already informed him via email that we will take legal action.
On his website, he advertises that he will manufacture and supply machines, but in reality, he only supplies them. Please advise on the next steps we should take.
From India, Bangalore
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The actions of the company amount to cheating. Section 420 will be applicable here. Both civil and criminal liability are evident in what the company has done or failed to do. Do not wait; initiate legal action straightaway after taking advice from a competent lawyer.
From India, Pune
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3180From India, Pune
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I conduct training programs in the field of Purchase and Inventory Management. One of the programs in this category is "Vendor Management". Yours is a classic example of the failure of vendor evaluation.
Before taking the vendor on board, you should have developed a well-defined checklist. You should have evaluated the vendor as per the checklist. Secondly, you should have done a reference check also.
Before giving any suggestions, we need to know the terms mentioned in the Purchase Order (PO). Secondly, I am surprised at the 100% advance payment. No company ever agrees to this. How your company agreed to this condition is a great surprise.
In the meanwhile, you may approach a lawyer who handles cases of the Indian Contract Act, 1872. This case falls under the purview of this act. Find out what the lawyer says.
I have checked the website of that vendor. It is an ISO-certified company. I recommend you approach the agency that has certified them. Provide them with the complete facts. Let us see whether they can revoke the ISO certification.
Last Note: What I am writing is a little gratuitous. However, it is worth mentioning. The quality of your post is quite inferior. You need to improve your English. If you wish to grow in your career, then command over English is a must. Be sure that for the lack of command over English, you are bound to lose some business.
Thanks,
Dinesh Divekar
From India, Bangalore
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Before taking the vendor on board, you should have developed a well-defined checklist. You should have evaluated the vendor as per the checklist. Secondly, you should have done a reference check also.
Before giving any suggestions, we need to know the terms mentioned in the Purchase Order (PO). Secondly, I am surprised at the 100% advance payment. No company ever agrees to this. How your company agreed to this condition is a great surprise.
In the meanwhile, you may approach a lawyer who handles cases of the Indian Contract Act, 1872. This case falls under the purview of this act. Find out what the lawyer says.
I have checked the website of that vendor. It is an ISO-certified company. I recommend you approach the agency that has certified them. Provide them with the complete facts. Let us see whether they can revoke the ISO certification.
Last Note: What I am writing is a little gratuitous. However, it is worth mentioning. The quality of your post is quite inferior. You need to improve your English. If you wish to grow in your career, then command over English is a must. Be sure that for the lack of command over English, you are bound to lose some business.
Thanks,
Dinesh Divekar
From India, Bangalore
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Drafting a Purchase Order: Safeguarding Interests
A prudent buyer, especially a firm or corporation, should carefully draft the P.O. to safeguard their interests rather than relying heavily on oral assurances and misleading showbiz. The selection should be made only after ascertaining the supplier's creditworthiness and past performance. Pay close attention to the payment terms, installation, commission, guarantee, warranty clauses, and the record of supplies received. It is evident that you have been cheated by them. Having paid 100% of the cost and still not being able to use the goods, you are bound to incur heavy losses and struggle to fulfill your supply commitments.
Steps to Address the Issue
Normally, any advance payment should be made only with a bank guarantee against a performance guarantee. Much depends on the terms and conditions of your purchase order and the records you have regarding the quality and quantity or condition of supplies received. Your next step should be to immediately engage an eminent advocate, issue a legal notice (possibly after sending your own registered notice), and file a suit for recovery, liquidated damages, etc. Simultaneously, file a First Information Report (FIR) under Section 420 and other applicable sections (although the police may argue it is a civil case). You can only speculate about what you may be able to recover from this situation, as nothing is guaranteed since the supplier does not seem to adhere to business ethics seriously.
ISO Certification and Assistance
I have serious doubts about the possibility of ISO providing assistance in this matter. As far as I know, ISO agencies do not certify the creditworthiness of awardees. However, lodging a complaint with them along with documentary evidence might aid in their next ISO audit. I am not certain about this.
Regards
From India, Bangalore
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A prudent buyer, especially a firm or corporation, should carefully draft the P.O. to safeguard their interests rather than relying heavily on oral assurances and misleading showbiz. The selection should be made only after ascertaining the supplier's creditworthiness and past performance. Pay close attention to the payment terms, installation, commission, guarantee, warranty clauses, and the record of supplies received. It is evident that you have been cheated by them. Having paid 100% of the cost and still not being able to use the goods, you are bound to incur heavy losses and struggle to fulfill your supply commitments.
Steps to Address the Issue
Normally, any advance payment should be made only with a bank guarantee against a performance guarantee. Much depends on the terms and conditions of your purchase order and the records you have regarding the quality and quantity or condition of supplies received. Your next step should be to immediately engage an eminent advocate, issue a legal notice (possibly after sending your own registered notice), and file a suit for recovery, liquidated damages, etc. Simultaneously, file a First Information Report (FIR) under Section 420 and other applicable sections (although the police may argue it is a civil case). You can only speculate about what you may be able to recover from this situation, as nothing is guaranteed since the supplier does not seem to adhere to business ethics seriously.
ISO Certification and Assistance
I have serious doubts about the possibility of ISO providing assistance in this matter. As far as I know, ISO agencies do not certify the creditworthiness of awardees. However, lodging a complaint with them along with documentary evidence might aid in their next ISO audit. I am not certain about this.
Regards
From India, Bangalore
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Dispciplinary Action.doc
CTC_SALARY_SLIP _FORM_(legal)(1 ).xls
DISCIPLINARY ACTION.ppt