STARTUP LEGAL5 Sept 2026
Indian Kanoon - Search engine for Indian Law
The National Consumer Commission ruled against Hafed Cold Storage, a government unit, whose poor temperature control spoiled farmers' potato seeds. The commission said the cold storage can't hide behind a clause that disclaims liability for breakdowns, calling such terms unfair. Sprouted seeds weren't fit for consumption. The lesson: service providers stay responsible even if contracts say otherwise.
Key Statutory Highlights
- Three consumer revision petitions about spoiled potato seeds in cold storage were clubbed and decided together.
- The commission called the cold storage's disclaimer for breakdowns, gas leaks, or power failure an unfair condition.
- A university report confirmed sprouted potatoes could be planted but were not suitable for human consumption.
Actionable Advice for Taxpayers / Founders:Review any contract where you store customer goods—disclaimers that shift all risk to the customer may be seen as unfair. Keep records showing you maintained required conditions.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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