In what way did they cause damage?
heater leak water and flooded bathroom carpet
But was the product faulty or did the customer do something abnormal?
I don't know
probably not even if did not told me he said water hater just start leak after couple weaks
Didn't you ask the customer what happened?
he said water hater just start leak after couple weaks
How this was caused is going to make all the difference.
Its difficult to say who is liable then.
If the leak was caused as a result of the customer's actions then nobody is liable.
If it was a faulty item then you are liable as you are bound by the Sale of Goods Act but you have a claim against the manufacturer for the value.
customer will claim my company and then I claim manufacturer?
Well, they can. Whether they will or not is another matter. Obviously it also depends on causation.
we are just middle man can they claim manufacturer direct?
Yes, but they won't do that. They have much better rights against you.
can this be covered from insurance company?
If you have insurance in place then you can claim upon it.
how hat best to do in this situation? pay whatever customer demand?
Finding out what was the cause would be a good start.
If the cause is the product then you are liable and should really settle and then recover from the manufacturer.
is any website then i can see similar court judgments?
Not sure what you mean? This is an issue of the statute of the Sale of Goods Act.
All the best