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2026 Supreme(Online)(NCDRC) 44

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
JONNALAGADDA RAJENDRA, PRESIDING MEMBER, ANOOP KUMAR MENDIRATTA, MEMBER
Trans Car India Private Limited – Appellant
Versus
Mr. S. Paramaguru – Respondent
FIRST APPEAL NO. 153 OF 2019 | FIRST APPEAL NO. 394 OF 2022



Advocates:
For Trans Car India: Mr. T.V. Lakshmanan
For S. Paramaguru: In person
For Mercedes Benz India Pvt. Ltd.: Mr. Himanshu Gulliya

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.

Headnote:(A) Consumer Protection Act, 1986 - Definition of consumer - Purchase by individual for business promotion does not exclude him from being a consumer. (Para 18)

(B) Deficiency in service - Allegations of selling a used vehicle as new and related mechanical issues were dismissed as unsubstantiated. (Paras 20, 27)

(C) Warranty terms - Correct commencement and coverage of warranty period as determined per purchase date. (Para 25)

(D) Compensation awarded by State Commission set aside due to lack of evidence on deficiency in service. (Para 27)

Facts of the case:
The complainant, Mr. S. Paramaguru, purchased a Mercedes Benz vehicle from OP-2 through OP-3 and faced multiple servicing issues post-purchase, including claims of misrepresentation regarding warranty and manufacturing details.

Findings of Court:
The State Commission found deficiencies in service, awarding compensation, but the appeal reveals no substantial merit in the allegations, leading to dismissal of the complaint.

Issues: Whether the complainant qualified as a consumer, occurrence of deficiency in service, and the legitimacy of warranty representations.

Ratio Decidendi: Consumer status upheld based on the intended use of the vehicle; misrepresentation claims were bolstered by independent verification and documentary evidence was found to lack substance.

Result: Appeals dismissed, and State Commission's order set aside.

Table of Content
1. complainant filed appeals challenging state commission's order. (Para 1 , 2 , 3)
2. details regarding the vehicle purchase and defects claimed. (Para 4 , 5 , 6)
3. arguments by ops regarding the consumer status and service provision. (Para 10 , 11)
4. court's examination of the evidence and allegations of misrepresentation. (Para 20 , 24)
5. final verdict against the original compensation awarded. (Para 26 , 27)

JUDGMENT

1. First Appeal No. 153 of 2019 is filed by Trans Car India Private Limited, and cross First Appeal No. 394 of 2022 is filed by Mr. S Paramaguru, the Complainant. These appeals challenge the Order of the State Consumer Dispute Redressal Commission, Puducherry („State Commission‟), dated 27.04.2018 in Complaint No. 8/2024 which partly allowed the complaint.

2. Since the facts and questions of law involved in both Appeals are similar, these Appeals are being disposed of by this common Order. For ease of reference, FA No.153 of 2019 is being considered as lead case, and the facts outlined below are derived from CC No. 8/2024.

3. For the convenience, the parties are referred to as placed in the original Complaint filed before the State Commission.

4. Brief facts of the case, as per the Complainant, are that he wanted to purchase a Mercedes Benz car and approached OP-2 for the same in September 2012. On 01.11.2012, he accepted the ex- showroom price of Rs.36,05,153, and the vehicle he wanted was delivered to him the next day through OP-3. Soon after the purchase, on 04.12.2012, the Complainant approached OP-2 for servicing and he was informed about an alloy wheel defect, for which replacement was promised, but deferred due to lack of stock. On 14.03.2013, only one wheel was replaced despite defect in two wheels. He was again assured that the remaining wheel would be replaced later. Similar problems recurred on 21.06.2013 and 22.06.2013, and OP-2 replaced the defective alloy wheel with a stepney and assured proper replacement in due course. Subsequently, additional issues arose relating to the anti-lock braking system (ABS), cruise control, and wiring harness. The Complainant handed over the vehicle to OP-2 on 17.10.2013. However, the same was returned on 21.11.2013 without complete repair, and the problems persisted. On 02.12.2013, he discovered that the car supplied had an engine and windshield of the 2011 model, though records reflected 2012 as the manufacturing year. Despite repeated requests, OP-2 failed to clarify the discrepancy. Further, the first registration of the vehicle was dated 30.04.2012, even though the Complainant had approached OP-2 only in September 2012, making it clear that an old used vehicle was sold to him and misrepresented as new. Further defects continued, including battery and wiring harness issues, with repeated but ineffective repairs between December 2013 and June 2014. Feeling cheated by the sale of a used and defective car, the Complainant approached the State Commission seeking appropriate relief.

5. On being issued notice, OP-1 filed the written version contending that the vehicle was purchased from OP-2, an independent authorised dealer operating on a principal-to-principal basis. There is no merit in the Complainant‟s allegations and contended that the complaint deserved to be dismissed. It was further contended that he was not a “consumer” under the Act, 1986, as he purchased the car for business purposes. The allegations of misrepresentation and blank signatures were completely false. The vehicle was sold on 01.11.2012 and registered thereafter, and the manufacturing date was 22.03.2012. The “2011” prefix in the commission number was an internal transaction code, and not the manufacture year. OP-1 further contended that if the Complainant had any doubt, he should have raised it when the first service invoice was issued on 04.12.2012 instead of waiting until 02.12.2013. The warranty remedies were limited to repair/replacement of defective parts of the vehicle and not r

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