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2026 Supreme(Online)(NCDRC) 114

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
A.P. Sahi, President, Bharatkumar Pandya, Member
Renault India Pvt. Ltd. – Appellant
Versus
Dr. Rameshwari Sharma – Respondent
Revision Petition No. 1247 of 2022 | IA /9173-9174/2022 | IA /9622/2022



Advocates:
For the Petitioner:Mr. Akash Tyagi, Advocate
For the Respondents:Mr. Gauravjeet Narwani, Advocate for R-1, Mr. Gurvinder Singh Sidhu, Advocate for R-2, Mr. Saket Mangla, Advocate for R-3&4

The manufacturer is liable for deficiencies in service during the warranty period regardless of the dealer's actions, as they oversee authorized service centers.

Headnote:(A) Consumer Protection Act, 2019 - Deficiency in Service - The District Forum's order holding the manufacturer and dealer jointly liable for a manufacturing defect was modified by the State Commission which held only the manufacturer liable. The court emphasized the manufacturer's responsibility to address service deficiencies during the warranty period. (Paras 10-11)

(B) Liability of Manufacturers - The manufacturer is responsible for any defects arising within the warranty period irrespective of the dealer's actions, particularly if the dealer did not provide adequate service. (Paras 6-7)

Facts of the case:
The complainant purchased a Renault Kwid and faced service issues after water damage was alleged, resulting in her car being non-operational. The service was denied under warranty based on the claim of water logging, which was disputed.

Findings of Court:
The court upheld the order against the manufacturer for not ensuring proper service under warranty, although it reduced the compensation awarded for mental distress, deeming it excessive.

Issues: Whether the manufacturer is liable for service deficiencies despite the dealer's claims and whether the awarded compensation is justified.

Ratio Decidendi: The court concluded that the manufacturer is liable for service deficiencies due to their failure to monitor authorized service centers effectively.

Result: Modified orders for compensation were issued against both the manufacturer and dealer.

Table of Content
1. the district forum's initial findings on service deficiencies against both parties. (Para 1)
2. the manufacturer's liability to ensure proper service under warranty conditions. (Para 4 , 7)
3. modification of compensation awarded for mental distress and service deficiencies. (Para 8)

ORDER

1. The present revision petition has been filed by the petitioner/O P -3, i.e. the m a n u fa ctu re r o f R enault vehicles, a g a inst the o rd e r dated 23.02.2022 and ex-parte o rd e r dated 17.02.2022 passed by the S tate C om m ission, U T C handgarh, in F irst A ppeal N o. 112 o f 2019, vide w hich S tate C om m ission passed an o rd e r a g a inst the petitioner by, as stated, com pletely m odifying the o rd e r dated 29.04.2019 passed by the D istrict F orum w herein the decision o f th e D istrict F orum in im posing the jo in t liability on the petitioner and the dealer/service centre has been m odified by holding the p e tition e r alone liable fo r deficiency in service involving a m anufacturing defect in the vehicle.

2. B rief facts o f the case are th a t com plainant/R -1 purchased R enault K w id car from the d e a le r (R -2) o f the petitioner com pany on 15.01.2016 and got the vehicle insured from R -3& 4. O n 21.08.2017 R -1/com plainant inform ed R -2 th a t her vehicle stopped w orking and brought her vehicle to R -2’s w orkshop by the R oad side assistance. A s R -1 had not allegedly disclosed the fa ct th a t the vehicle w a s parked in a w ater-logged area, her w a rra nty claim w as rejected by the d e a le r M /s P M G A uto (R -2) on the ground th a t breakdow n o f the engine had occurred due to entering of w a te r in the engine com partm ent, w hich w a s not covered under the term s and conditions o f w a rra nty agreem ent and the sam e w as not a m anufacturing defect. R -1-com plainant then approached R -3 and 4 (insurer) fo r claim ing insurance but the sam e w as rejected vide letter dated 08.11.2017 on the ground th a t there is no accident and hence the claim is not payable u n d er the policy conditions. A ggrieved by rejection o f insurance claim by R -3& 4, and also on account o f deficiency in service on th e part o f the petitioner and the service centre, R -1 filed a consum er co m p la in t before D istrict F orum on 05.12.2017. P roceedings started in the D istrict F orum w here vide order dated 29.04.2019, R -2 and the p e tition e r w ere proceeded ex-parte and a fter hearing o th e r parties and a fter perusal o f various docum ents on record, D istrict F orum passed an order holding the p e tition e r and the R -2 jo in tly liable fo r d e ficie nt service and to com pensate R -1 fo r dam ages and com pensation, etc. T he relevant portion o f the D istrict F orum ’s o rd e r dated 29.04.2019 is reproduced below :

6] After on examination careful of complete evidence on record and contentions raised by the complainant in her complaint and written statement of OPs No.1 & 2/Future Generali Insurance Company Ltd., especially Reply to legal notice (Ann.C-8) of PMG Autos Pvt. Ltd, Chandigarh/OP No.4, it is noticed that Dr. Rameshwari Sharma, complainant took her car to PMG Auto Pvt: Ltd., Plot NO.47, Industrial Area, Phase-1, Chandigarh on 21.8.2017 for repair, but she was denied the service of her car by the PMG Auto Pvt. Ltd./OP No.4 allegedly on ground & observation i.e. The car came to PMG Auto Pvt. Ltd., 47 Industrial Area, Phase-1, Chandigarh 21.8.2017 after being submerged in water due to heavy rainfall. Due to the entry of water in the engine, the engine got seized. RIPL Technical team after thorough investigation denied the warranty. Customer was informed and was advised to get this vehicle repaired and take the claim thru insurance.

7] The Opposite Party N0.4/PMG Autos Pvt. Ltd. refused to repair the car though within warranty period. The Renault Kwid car is having warranty of 4 years or 100000 Kms. whichever comes first on all its mechanical electrical components as promise

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