The liability of sellers for defective goods and the consumer's right to compensation under the Consumer Protection Act, emphasizing the applicability of Section 14.

Mr. Justice J.D. Kapoor, President—Aforesaid two appeals arise from the same order dated 18.1.2001 passed by District Forum whereby the respondents were directed to replace the vehicle of the appellant Mr. S.N. Sharma (hereinafter referred to as ‘the complainant’) on taking 60% payment of market price at the time on the date of passing of the order and within 60 days after the return of the vehicle. The respondents were further directed to pay Rs. 3,000 as costs.

2. The complainant Mr. S.N. Sharma is aggrieved of the quantum of payment to be made by him for replacement of the vehicle whereas the appellant Maruti Udyog Limited is aggrieved of the direction for replacement of the vehicle which has already been in use for more than 10 years.

3. Allegations giving rise to these appeals as made in the complaint before the District Forum, in brief, are as under :

4. Complainant purchased a Maruti Car 800 from respondent M/s. Sikand & Co. for consideration of Rs. 1,08,674 on 16.7.1990. After having plied about 20,000 kms some holes were developed in car’s sheet on the doorspanels and there were also rust spots about which complaint was made to respondent No. 1 and its authorised representative inspected the car and the complaint was found to be genuine. The defective panels namely door panels, bonnet and hatch box were replaced but no care was take to paint the new panels. Colour of the car which originally was Cairo dust became different. Remaining paints which were left unchanged developed the rust scar. He again approached M/s. Maruti Udyog Ltd. with the complaint that these were manufacturing defects and low standard quality of sheet was used and requested them to replace the car as such defects were attributable to faulty material or workmanship at the time of manufacture.

5. In their defence the respondents besides raising preliminary objection that the complaint was time-barred and there was no privity of contract between the consumer and service provider the Maruti Udyog Limited took the plea that its only obligation was to repair or replace the defective components during warranty period but still the service of providing replacement of panels free of cost was given as a matter of goodwill gesture in the year 1994 i.e., after four years of the purchase of the car and complainant was not entitled to or replacement of any part of the body after warranty.

6. The aforesaid contentions of the manufacturer and dealer have no substance as it was immaterial that after how many years the inherent manufacturing defects were detected. The clause of warranty period of one year or 20,000 kms. was not applicable to the facts of the present case as the defects were so inherent and of manufacturing nature revealing that some faulty material was used without a skilled workmanship. The body and the door panels were so defective that these were on instructions by the mechanical engineer of Maruti Udyog Limited repaired and replaced. So much so the colour which was originally Cairo Dust became different which appears to be irreparable or irreplaceable and remaining which was left unchanged also developed rust scar.

7. No trader or manufacturer can escape from its liability of selling defective goods much less the defects that are manufacturing and irreparable. In the instant case the consumer has been left high and dry due to the defective material and faulty workmanship used at the time of manufacturing the vehicle and the colour of the vehicle is so bad that its resale value has not only reduced to very low but he cannot find an easy customer. It was with an object to protect the interest of the consumer and curb the tendencies of unscrupulous manufacturers and dealers who care a fig for the quality or standard which is required to be maintained in relation to the goods that the Consumer Protection Act was brought on the Statute Book and by virtue of provisions of Section 14 of the Consumer Protection Act the Consumer Fora were given the power