Section 49 in The Bureau of Indian Standards Rules, 2018
49. Compensation for non-conforming goods.
(1)Where a certified body or license holder or his representative has sold goods, articles, processes, system or services, which bear a Standard Mark or any colourable imitation thereof, which do not conform to the relevant standard, and where the Bureau decides that the certified body or license holder or his representative shall pay compensation under clause (b), of sub-section (7) of section 18 of the Act, then the compensation payable in such case shall be two times the selling price of the non-conforming goods, article, process, system or service, and the testing charges:Provided that in case of precious metal article not conforming to the relevant standards, such compensation shall be two times the amount of difference calculated on the basis of shortage of purity for the weight of such article sold and the testing charges.(2)Every application for compensation shall be made in the form as specified by the Bureau from time to time together with self-attested copies of relevant documents, including the test report of the goods, article, process, system or service in question, relevant to establish the non-conformance and such test report shall be issued by any laboratory maintained or recognised by the Bureau.(3)The Head of the Regional office of the Bureau under whose jurisdiction the holder of licence or certificate of conformity falls, shall be the authority competent to decide the compensation:Provided that the authority shall decide the application within sixty days of its filing.Provided further that before passing any order under this sub-rule, an opportunity to file a statement of defence shall be afforded to the holder of licence or certificate of conformity to whom the application relates and an opportunity of personal hearing may also be given to both the sides, if the circumstances so deserve.(4)In case the holder of licence or certificate of conformity fails or refuses to pay the amount of compensation, as provided under this rule, within a period of thirty days from the date of passing of the order, the Bureau may cancel the licence or certificate of conformity:Provided that the period of thirty days may be extended by a maximum period of another thirty days by the authority, if an application revealing genuine hardship is preferred by the holder of licence or certificate of conformity.(5)If the non-conformity to standard is established, the Bureau will carry out inspection of other samples of the product in the market or at the production site and initiate further action against the licensee as per the license conditions.(6)Where the Bureau decides that a certified body or licence holder or his representative is liable for injury caused by non-conforming goods or article under clause (c) of sub-section (7) of section 18 of the Act, it shall communicate this decision to the certified body or licence holder or his representative and the certified body or licence holder or his representative shall take a decision on the compensation under section 31 of the Act within a period of two months of receipt of such communication.
