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2023 Supreme(Online)(Del) 18075

DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
S. B. Sinha, J
Complainant No. 1 – Appellant
Versus
Opposite Party No. 1 – Respondent
Consumer Complaint No. 1234/2016



Advocates:
For the Complainants:[Advocate C.K. Sharma]
For the Respondents:[Advocate R. Sharma]

Consumers purchasing goods for personal use are protected under the Consumer Protection Act, even if purchased by a company, if for personal benefit and not for profit.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(d), 17(2) - Deficiency of service and unfair trade practices in the sale of a defective vehicle - Refund of sale price and compensation claimed due to persistent braking issues despite multiple repairs - The Complainant classified as a ‘Consumer’ as car used for personal purposes, exempting it from ‘commercial purpose’ definition - Manufacturing defect acknowledged, but not rectified by Opposite Parties. (Paras 21, 22, 29-40)

(B) Compensation - Court orders refund of the entire purchase price along with interest and additional compensation for mental agony, litigation costs, service and maintenance expenses incurred, and insurance - Rationale based on failure to provide satisfactory service. (Paras 43-45)

Facts of the case:
Complainants bought a vehicle from Opposite Party No. 1, encountered continuous braking problems, which were not resolved despite numerous repair attempts, leading to additional issues with the car.

Findings of Court:
The court found persistent deficiencies in service provided by the Opposite Parties, resulting in the decision to refund the purchase price and additional compensatory amounts.

Issues: The primary issues were whether the Complainants are consumers under the act and whether there was a deficiency of service by the Opposite Parties.

Ratio Decidendi: The court highlighted the importance of defining ‘consumer’ and clearly established that the persistent issues with the vehicle, acknowledged by the Opposite Parties, equated to a manufacturing defect requiring compensation and refund.

Result: Complaint allowed.

Table of Content
1. complaint relates to ongoing vehicle issues and unfulfilled service commitments. (Para 1 , 2 , 6 , 10)
2. definition of 'consumer' and jurisdiction are pivotal in determining the case. (Para 20 , 21 , 29 , 39)
3. court directed a refund based on established deficiencies in service and product manufacturing defects. (Para 43 , 44 , 45)

1. The present complaint has been filed by the Complainants before this Commission alleging deficiency of service and unfair trade practice on the part of Opposite Parties and has prayed the following reliefs:
"(a) To refund the total sale price of the Car (Rs.26,26,462) plus interest borne on the loan (Rs 2,26,718) amounting to a total of Rs 28,53,180 (Rupees Twenty Eight Lakh Fifty Three Thousand One Hundred and Eighty only) along with interest @ 18% per annum from the date of purchase, i.e. October 20,2014 till the date of realization;
(b) To pay Rs 15,00,000 (Rupees Fifteen Lakh only) as compensation to the complainant for mental agony and harassment;
(c) To refund the Total service and maintenance cost of Rs 1,09,871 (Rupees One Lakh Nine Thousand Eight Hundred and Seventy One only) incurred on the car along with Rs.35,000 (Rupees Thirty Five Thousand Only) incurred on tyre replacement due to excessive heating of brakes;
(d) To pay Insurance amount 2nd year - Rs 51,000 (Rupees Fifty One Thousand Only) and 3rd Year - Rs.42,288 (Rupees Forty Two Thousand Two Hundred and Eighty Eight only);
(e) To pay Rs 3,00,000 (Rupees Three Lakh Only) towards litigation cost being the actual costs of litigation suffered till date and further litigation cost to be incurred in contesting the present consumer complaint;
(f) To stop the above mentioned unfair trade practices, and issue a corrective advertisement disclosing the true and correct specifications, road worthiness, terms and conditions of the service being offered by it; and
(g) Pass such other or further orders as this Hon'ble Commission may deem just fit and proper in the facts and circumstances of the case in favour of the complainant."







2. Brief facts necessary for the adjudication of the present complaint are that the Complainant No. 1 purchased BMW1 Series 118d Car for Rs.26,26,432 from Opposite Party No. 1, i.e. authorised dealer of the car, manufactured by Opposite Party No. 2. The Complainant No. 1 entered into the Retail Finance Agreement with BMW Financial Services on 20.10.2014 for loan amount of Rs.15,00,000 @10% per annum and made down payment of Rs.11,74,460, which includes one advance EMI which was paid on 20th October, 2014.A sum of Rs.2,26,718 was paid as interest by the Complainant No. 2 on the said loan amount. The Complainant No. 1 after using the car for about five months observed a loud squeaking sound while applying brakes. The Authorised Representative of the Complainant No. 1 reported the same to the Opposite Party No. 1, who after inspection, admitted the loud and strange squeaking sound while applying brakes of the car and duly noted it on the job card.

3. The Opposite Party No. 1 kept the car in question in its workshop for ten days, however, the problem could not be cured even after repairs. Thereafter, vide email dated 27.4.2015, the Complainants again intimated the said problem to the Opposite Party No. 1 and sent the car to the workshop of Opposite party No. 1. After inspection, the technician of Opposite Party No. 1 again noted that "whistling noise comes from brake while applying brakes" and kept the car at workshop for repairs.

4. On 22.5.2015, the Opposite Party No. 1 delivered the said car after keeping it in the service station for around six - seven days and informed the Complainants that front brake pads and the front rotors (discs) of the car had been changed. However, the noise while braking the said car was still persisting. The Complainants, thereafter, sent email dated 9.6.2015 to both the Opposite Parties, to which the Opposite Party No. 2 had given its sincere apologies and informed the Complainants


















































































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