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2026 Supreme(Online)(NCDRC) 335

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
Inder Jit Singh, Presiding Member, Sudhir Kumar Jain, Member
Mahindra & Mahindra Ltd. – Appellant
Versus
Kanaram Jat – Respondent
FIRST APPEAL No 96 of 2017



Advocates:
For the Appellants/Petitioners: Anand Shankar Jha, Nandika Kaushik
For the Respondents: None

In cases of persistent manufacturing defects evidenced by repeated repairs and major component failure within the warranty period, expert opinion under the Consumer Protection Act is not mandatory to establish product liability.

Headnote:(A) Consumer Protection Act - Manufacturing defects in vehicle - Expert opinion - Necessity of - Held, where manufacturing defects are apparent from the series of repair orders and frequent replacements of major parts like the engine within the warranty period, an expert opinion under Section 13(1)(c) of the Act is not mandatory.

(B) Consumer Protection Act - Deficiency in service - Liability of manufacturers and dealers - Held, manufacturer and dealer are liable for sale of a defective vehicle; however, compensation awarded for mental agony should be reasonable and commensurate with the deficiency proved.

Facts of the case:
The complainant purchased a vehicle which developed persistent engine problems shortly after purchase. Despite repeated repairs and replacing the engine, the vehicle remained defective and non-functional. The complainant filed a consumer complaint seeking replacement or refund, which was allowed by the State Commission. The manufacturer appealed against this order.

Findings of Court:
The Court upheld the finding of the State Commission regarding the existence of manufacturing defects based on the frequency of repairs and engine replacement. However, it modified the compensation amount, deeming the initial award for mental and financial losses excessive, and clarified the liability of the service center.

Issues: Whether the vehicle suffered from manufacturing defects and whether the lack of expert opinion barred the claim; whether the compensation awarded by the State Commission was excessive.

Ratio Decidendi: When defects are persistent, recurring, and require major component replacements like an engine within the warranty period, the consumer's case is substantiated by the repair history, rendering extraneous expert evidence unnecessary. Appellate courts may modify excessive compensation awards while upholding the liability for the sale of defective goods.

Result: Appeal disposed of with modifications to the compensation and liability order.

Table of Content
1. overview of the consumer dispute regarding a defective vehicle purchase and the procedural history. (Para 1 , 2 , 3 , 4 , 5)
2. assessment of manufacturing defects through repair history without requiring mandatory expert opinion. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. modification of compensation awards for consumer cases based on proportionality. (Para 13)

JUDGMENT

DR. SUDHIR KUMAR JAIN, J

1. Briefly stated relevant facts of the case are that Kanaram Jat / the respondent no. 1/the complainant (hereinafter referred to as ‘the complainant’) on 13.05.2013 purchased a Scorpio SUV bearing registration number RJ-6UB-2829 (hereinafter referred to as ‘the vehicle’) for his personal use from Nagaur Automobiles Private Limited/the respondent no.2/ the opposite party no.1 (hereinafter referred to as ‘the opposite party no. 1’) for total consideration of Rs.12,27,426/- including registration charges and insurance charges. The opposite party no 1 has assured the complainant about good technology used in the manufacturing of the vehicle. The engine of the vehicle showed problem within 2/3 months after purchase and thereafter the vehicle was checked by the opposite party no 1. The complainant left the vehicle in the workshop of the opposite party no 1 on 16.09.2013 and the opposite party no. 1 after repair of the vehicle handed over to the complainant on 20.09.2013 with assurance that the defects have been rectified. The engine of the vehicle again after 2 /3 months developed problem and the complainant left the vehicle in the workshop of the opposite party no 1 on 27.12.2013 which remained there till 21.01.2014. The opposite party no 1 again assured the complainant about rectification of the fault in the engine. The opposite party no 1 installed a separator in the engine of the vehicle. The engine of the vehicle again broke down in the month of September, 2014 and the complainant took the vehicle in the workshop of the opposite party no 1. The complainant on asking of the opposite party no 1 left the vehicle in workshop for checking. The complainant visited workshop of the after 5/7 days and requested for providing permanent solution for faulty engine. The opposite party no 1 assured for replacement of the engine. The opposite party no 1 kept the vehicle for 60 days and thereafter handed over the vehicle to the complainant after replacing the engine. However the vehicle broke down for many times and on 24.12.2014 after running for few days. The vehicle remained stationed at the workshop situated at Godhra till 31.12.2014 due to faulty air vacuum tube of the vehicle. The vehicle also used to get jammed and the complainant submitted the vehicle to the respondent no 3/the opposite party no 2/ B. Mangatram & Company (hereinafter referred to as “the opposite party no 2”) on 05.01.2015 for repair and since then vehicle is lying in the workshop of the opposite party no 2. The vehicle is suffering from manufacturing defects. The opposite parties sold defective vehicle to the complainant. The complainant had paid the instalments of the loan amount to HDFC Bank regularly. The complainant being aggrieved filed present consumer complaint bearing C.C. No. 15 of 2015 tiled as Kanaram Jat V Nagaur Automobiles Pvt. Ltd. and others before the Rajasthan State Consumer Disputes Redressal Commission, Jaipur (hereinafter referred to as ‘the State Commission’) with following prayers:-

a) Direct the Opposite Parties to provide new Vehicle of same model to the Complainant in place of defective sold vehicle Scorpio, S.U.V. bearing Registration No. RJ-6UB-2829 OR to refund the purchase amount of the Vehicle/Insurance/Registration etc. i.e. Rs.12,27,426/- (Rupees Twelve Thousand Twenty Seven Thousand Four Hundred Twenty Six Only) along with interest.

b) Direct the Opposite Parties to pay compensation of Rs. 10,00,000/- (Rupees Ten Lakh) to the Complainant for financial and mental losses caused to him due to their negligent act and deficiency in

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