In Brief
SGS India, a testing and inspection company, was engaged to inspect and certify groundnut quality and specifications before export to Greece and Netherlands. After shipment, tests at the destination ports showed higher Aflatoxin levels than SGS had certified. The National Consumer Disputes Redressal Commission held SGS liable for deficiency in service and awarded damages. The Supreme Court allowed SGS's appeal, holding that the burden of proving service deficiency lies on the complainant, who failed to produce evidence that SGS's certified samples differed from the destination test results. The Court ruled that without a contractual obligation to guarantee specifications at the destination port, SGS was not liable for natural changes in agricultural products during two months of transit at sea."
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