(1) WE have heard learned counsel for the parties.

(2) LEAVE granted.

(3) LEARNED Senior Counsel appearing on behalf of the appellants has stated before us and it is also mentioned in the synopsis of facts given in the special leave petition that M/s Hindustan Motors who are the appellants before us have stopped manufacturing Ambassador NOVA model cars and, therefore, the order of the National Commission that a new car be supplied to the respondent cannot be complied with.

(4) IN this situation, we are left with no alternative except to direct that the order passed by the State Commission for the refund of Rs 1,77,200 along with interest at the rate of 12 per cent from the date of the complaint till actual payment, together with a sum of Rs 50,000 as compensation for mental pain and agony, be complied with as we are fully satisfied, on the facts of the case, that the appellants had sold a defective car to the respondent and the offer of the appellants for repairs including replacement of a new engine block will not be a substitute for a new car which the respondent legally deserves to be supplied. The order of the State Commission for payment of Rs 3000 towards costs is also maintained.

(5) THE observations of the National Commission to the following effect:

"AN apprehension has been expressed by the dealer that the burden of this may ultimately fall upon the dealer. We make it clear that for the manufacturing defects in the vehicle, the dealer cannot be held liable. The liability must be borne by the manufacturer."

are also maintained.

(6) THE appeal is disposed of accordingly.