NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Subhash Chandra, Presiding Member and
Dr. Sadhna Shanker, Member
M/s. Steel Strips Wheels Ltd. and Anr. – Appellants
versus
M/s. BMW India Pvt. Ltd. and Ors. – Respondents
First Appeal No.1913 of 2017
(Against the Order dated 01/08/2017 in Complaint No. 44/2017 of the State Commission Chandigarh)
Decided on 16.12.2024
Consumer Protection Act, 1986 – Sections 19 and 84 [Consumer Protection Act, 2019 – Section 51] – Whether purchase of car by Entity qualifies as “Consumer” – Therefore, in the present case, the finding of State Commission that the vehicle was purchased for commercial use and that the complainants do not fall within the definition of a ‘consumer’ was based on the admitted facts that vehicle was purchased and registered in the name of complainant no. 1 and that neither is there any board resolution nor any appointment terms of complainant no. 2 indicating that the vehicle was purchased solely for the personal use of complainant no. 2 as also there is nothing on record to demonstrate that the complainant no. 2 was entitled to receive a car as part of his remuneration and that there is no assertion that the car was purchased solely for personal use of the complainant no. 2 – It is well-established that if a defect in goods cannot be determined without proper analysis, an independent expert report is required under Section 13(1)(c) of the Act – Upon a careful and thorough consideration of the rival submissions and the perusal of documentary evidence as well as applicable legal principles, it is seen that Section 2(d) of the Consumer Protection Act, 1986 excludes from the definition of “consumer” persons who purchase goods for commercial purposes. It is evident that the vehicle was purchased in the name of complainant no. 1, a corporate entity rather than complainant no. 2 in his personal capacity. The complainants failed to produce any board resolution or other corporate document establishing that the vehicle was purchased solely for the personal use of complainant No.2 – On facts, the complainants are not ‘consumers’ within the meaning of Section 2(1)(d) of the Act, 1986, therefore, there is no need to enter into the merits of the case – Appeal dismissed. [Paras 10 to 23].
Result: Appeal dismissed.
ORDER
Dr. Sadhna Shanker, Member—The instant appeal has been filed under Section 19 of the Consumer Protection Act, 1986 (for short “the Act”) in challenge to the Order dated 01.08.2017 of the State Consumer Disputes Redressal Commission, UT Chandigarh (hereinafter referred to as the ‘State Commission’) in complaint No. 44 of 2017 whereby the complaint was dismissed.
2. We have heard the learned counsel for the appellants (hereinafter referred to as the ‘complainants’) and the learned counsel for the respondents No.1 and 2 (hereinafter referred to as the ‘manufacturer’ and the ‘dealer’, respectively) and have perused the record including inter alia the impugned order dated 01.08.2017 and the memorandum of appeal. None is present for respondent no. 3.
3. The brief facts of the case are that the complainants purchased a BMW 730Ld of BMW 7-Series (‘BMW’) from the manufacturer through the dealer at Chandigarh for a sum of Rs.82 lakh for the official/personal use of Dheeraj Garg, the managing director of complainant No. 1. It is alleged that the car was represented as ‘Zero Error Car’ and advertised under tag line “sheer driving pleasure, driving luxury and ultimate peace of mind’. The vehicle carried a warranty for a period of two years from the date of its purchase. It is alleged that from the day one of the purchase, the said BMW car started giving problems such as mal-functioning of the clock, improper stereo performance, cracking voice, shaking front left passenger seat, etc. and these defects were brought to the notice of the manufacturer vide letter dated 27.03.2015 as well as vide previous emails dated 11.03.2015, 18.03.2015 & 20.03.2015 exchanged between the parties. Further, vide emails dated 20.4.2015, 16.04.2015 & 15.04.2015, the manufacturer admitted the inherent manufacturing defects in the BMW but they failed to offer any effective resolution to rectify the defects. It is also alleged that the manufacturer had admitted the manufacturing defects in their reply to the legal notice sent by the advocate.
4. Feeling aggrieved, the complainant filed a complaint No. 228 of 2018 before the State Commission and the same was disposed of as settled subject to rectification of manufacturing defects in BMW car. It is alleged that despite change of seat, the defects could not be rectified by the manufacturer and the dealer. Therefore, another complaint No. 320 of 2016 was filed by complainant before the State Commission which was dismissed by the State Commission, vide order dated 07.07.2016 with liberty to file fresh one.
5. Thereafter, the complainant filed a complaint before the State Commission, Chandigarh with the following prayer:-
(i) Direct the Opposite Parties to either replace the defective car with a brand new one or refund the amount Rs.82,00,000/- spent on the new car, along with interest from the date of purchase till the date of the payment;
(ii) Direct the Opposite Parties to pay a lump-sum amount of Rs.3,00,000/- as token re-imbursement of the various incidental expenses incurred on the running of the car, such as Road Tax, Insurance and which have gone waste, due to inherent defects in the car;
(iii) Opposite Parties also be held liable to pay a sum of Rs.3,00,000/- towards the compensation for the physical and mental harassment suffered by the complainant no.2.
(iv) Impose a sum of Rs.1,00,000/- on the Opposite Parties as deterrent/punitive damages for indulging in unfair trade practice of selling a defective car;
(v) Complaint may be allowed with legal costs of Rs.55,000/-; and
Any other relief to which the Complainants may be entitled to under the facts and circumstances of the matter be passed in favor of the Complainants and against the Opposite Parties.
6. The manufacture and dealer contested the complaint by filing written statement. It is stated that the complaint is nothing but an abuse of process of law. It is further stated that as per the settlement agreed, the car was properly repaired. It is further
(1) Defect – It is well-established that if a defect in goods cannot be determined without proper analysis, an independent expert report is required under Section 13(1)(c) of the Act.(2) Corporate Do....
New vehicle with early repeated defects constitutes 'defect'; expert opinion not mandatory if cogent evidence; company director personal use qualifies as consumer; manufacturer-dealer jointly liable ....
The purchase of a vehicle by a company for its managing director's personal use does not constitute a commercial purpose, allowing for consumer protection remedies.
(1) Commercial Use Admission – A categorical admission of commercial use in the pleadings creates a jurisdictional hurdle. The Commission reaffirmed that whether a party is a “Consumer” must be decid....
The court concluded that a purchase made for business promotion does not exclude the purchaser from being classified as a 'consumer', and the allegations of misrepresentation were unsubstantiated.
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