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2026 Supreme(Online)(NCDRC) 316

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
A. P. Sahi, President, Bharatkumar Pandya, Member
Hyundai Motor India Limited – Appellant
Versus
Cijioni Matilda Dias – Respondent
Revision Petition No. 1933 – 1934 Of 2014



Advocates:
For the Appellants/Petitioners: Sukumar Pattjoshi, Hardik Vashisth, Raina Anand
For the Respondents: S. S. Rebello, Moulishree Pathak

In a revision petition, the court will not interfere with concurrent findings of fact unless there is perversity; however, a full refund for a defective product is unjustified if the consumer has continued to use the vehicle for a significant period; compensation should instead be appropriately adjusted.

Headnote:(A) Consumer Protection Act, 1986 - Section 2(1)(f) - Deficiency in service regarding vehicle defect - Limitation of Revision jurisdiction - Concurrent findings of fact - Manufacturer and Dealer admitted steering system issues but failed to rectify - Expert reports utilized for factual assertions, though lacking technical methodology - Principle that appellate courts should not interfere with factual findings of lower forums if not perverse - Apportionment of liability - Reduced refund ordered as compensation for persistent harassment despite vehicle usage. (Paras 15, 17, 19, 21)

Facts of the case:
The respondent purchased a vehicle that developed a steering defect and low mileage within days. The dealer acknowledged the steering issue in internal emails but later denied it in legal proceedings. Lower consumer forums held the manufacturer and dealer liable for manufacturing defects and directed a full refund of the purchase price.

Findings of Court:
The Commission held that while the 'manufacturing defect' claim was not scientifically proved by experts, the 'deficiency in service' was established by the dealer's own admissions. It affirmed the findings of lower forums but modified the final award to correspond with the deposited amount, considering the vehicle had been in use by the respondent for years.

Issues: Whether the lower forums erred in finding a manufacturing defect; whether the revisionary jurisdiction allows interference with factual findings; and whether a full refund was justified given the vehicle's continued usage.

Ratio Decidendi: A manufacturer is duty-bound to rectify defects. Since the dealer admitted the issues, the deficiency is established, and the manufacturer is liable for the failure of its service network. However, full refund is inappropriate where the consumer has continuously used the vehicle; compensation should instead be awarded.

Result: Revision Petition allowed in part; refund substituted with deposited amount in full and final satisfaction.

Table of Content
1. overview of the dispute regarding vehicle defects and lower court findings. (Para 1 , 2 , 3 , 4)
2. procedural history and contentions regarding expert evidence and revision scope. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
3. assessment of evidence and the distinction between defect and deficiency. (Para 15 , 16 , 17 , 18 , 19 , 20)
4. final modification of the award based on continued usage of the vehicle. (Para 21 , 22)

ORDER

A. P. SAHI, J (PRESIDENT)

1. Heard Mr. Sukumar Pattjoshi, learned Senior Counsel for the Petitioner, Mr. Rebello, learned Counsel for the Respondent No.-1 and none has appeared for Respondent No.-2 who has been proceeded ex-parte vide order dated 30.01.2024.

2. This is a dispute relating to alleged deficiencies and allegations of manufacturing defect in a Hyundai i10 vehicle that was purchased by the Respondent No.-1 from the Respondent No.-2 Dealer and manufactured by the Petitioner. The purchase was made on 21.01.2012 and within a few days a Complaint was made by the Respondent No.-1 to the Dealer / Respondent No.-2 about a serious problem with the steering wheel that was not rotating smoothly and did not revert back to its normal position after turning left or right. The contention of the Complainant was that inspite of this defect being pointed out the same was not rectified and the Complainant had to repeatedly go to the garage of the Respondent No.-2 several times. It was later on also complained that the car gave a very low mileage of 8.5 kms. / litre which was far below the expected and promised mileage of 20 kms. / litre. The Complainant to support the contention had also relied on two reports obtained from Mr. Manuel Pereira and Mr. Conroy D’Melo who according to the Complainant were qualified experts of the field.

3. The claim was contested before the District Consumer Disputes Redressal Commission, South Goa being Consumer Complaint No. 31 of 2012. The Complaint was allowed on 28.11.2013 and while recording its findings the District Commission also relied on the admission of the Managing Director of the Respondent No.-2 / Dealer, Mr. Prashant Joshi, who had communicated to the Area Manager of the Manufacturer indicating the defect in the steering system. The findings recorded by the District Commission from Paragraph No. – 18 to 28 are extracted herein under:

“18. An email on record dated the 1st November 2013 sent by the OP No. 1 by Mr. Manu Srivastha who is the area service manager of the company sent to the Manager of the Opposite party no 2, explains that all new i-10 vehicles are fitted with 35A steering column motor (except Astha Version) as compared to 65A steering column motor which was fitted in previous i-10 vehicles, also stating that the customer should be educated into this concept that there is no manufacturing defect. In a further mail on the same day he requested the service team to thoroughly inspect the vehicle and to have a full tank road test for the vehicle for resolution of the mileage problem. In a email on the same day he requested thorough checking and inspection of the vehicle and that all defective parts to be replaced under warranty and requested that he thereafter be informed.

19. Also on record is an email from the Managing Director of Opposite Party No. 2 Mr. Prashant Joshi, written on the same day at 11.40 written to the Area Manager stating "I do not agree with the view of Sharad that the Car steering system works the same way as new i10 cars after modification. I have personally driven car along with customer and Vijay Kamat and found the steering worse than on new modified system. The steering just doesn't come back.".....'

20. Surprisingly after the managing director's email sent on 1st November 2012 to the area manager after taking a drive along with the customer and one Vijay Kumar, admitting there was a problem with the steering admitting that the steering was worse than on a new modified system and that the steering just doesn't

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