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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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What is Legal Case Shots?+

Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Consumer RightsSupreme Court of India

SGS India Ltd. v. Dolphin International Ltd.

Civil Appeal · 2021 INSC 622Decided 6 Oct 2021
Civil Appeal No. 5759 of 2009
Justice Hemant Gupta · Justice V. Ramasubramanian

Background

Dolphin International had hired SGS India, an inspection and certification company, to inspect and certify groundnut consignments being exported to Greece and the Netherlands for quality, quantity, and aflatoxin content before shipment. When the consignments arrived at their destinations, independent labs found the peanut sizes and aflatoxin levels did not match SGS's certified figures, and Dolphin filed a consumer complaint alleging deficiency in service. The National Consumer Disputes Redressal Commission ruled in Dolphin's favour, ordering SGS to pay over Rs. 65 lakh with interest, and SGS appealed to the Supreme Court.

Decision Breakdown

The Supreme Court allowed the appeal, set aside the Commission's order, and dismissed the complaint. It held that the burden of proving deficiency in service lies on the complainant, and Dolphin had failed to produce evidence, such as test results of the samples SGS retained at the time of loading, showing that SGS's certification at the port of loading was itself wrong or different from what was shipped. The Court found that SGS's certificates covered only the condition of the goods at the point of loading in India, carried an explicit disclaimer about changes from storage and transportation conditions, and contained no obligation that the goods retain identical specifications after two months at sea; natural variation during transit could not be blamed on the inspector.

Lesson Learnt

In a consumer complaint, the person alleging deficiency in service must actually prove it with evidence: a certifying agency cannot be held liable merely because test results differ later at a different location, if its certificate only covered conditions at the time and place of its own inspection, with no promise about conditions after transit.

SGS India Ltd. v. Dolphin International Ltd. – Legal Case Shots | LegalAware