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2026 Supreme(Online)(NCDRC) 375

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
INDER JIT SINGH, Presiding Member, SUDHIR KUMAR JAIN, J
Gursimran Singh Walia – Appellant
Versus
Jaycee Automobiles Pvt Ltd – Respondent
FIRST APPEAL NO. 03 OF 2017|CC No. 46 of 2012

Advocates:
For the Appellants/Petitioners:Mr. Deepak Agarwal, Advocate, Mr. Kawaljit Singh Walia, Auth. Rep.
For the Respondents:Ms. Deboshree Saha, Adv. (VC), Ms. Ekta Bhasin and Mr. Sanidhya Sonthalia, Advocate (VC)

New vehicle with early repeated defects constitutes 'defect'; expert opinion not mandatory if cogent evidence; company director personal use qualifies as consumer; manufacturer-dealer jointly liable for compensation, not full replacement.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(d), 2(1)(f), 2(1)(g), 13(1)(c), 14, 19 - Defect in goods - New high-end vehicle developing multiple mechanical issues within 2½ months of purchase, requiring repeated workshop visits and gearbox replacement - Held, constitutes 'defect' under Section 2(1)(f); frequent early troubles imply inherent defects - 'Manufacturing defect' not conclusively proved due to inconclusive expert report, but compensation warranted for defective supply and service deficiency - Expert opinion under Section 13(1)(c) not mandatory if other cogent evidence exists (Paras 33-37).

(B) Consumer Protection Act, 1986 - Section 2(1)(d) - Consumer status - Vehicle purchased by company director with personal loan, some documents in company name but initial sales contract/receipt in individual name - Subsequent alterations by dealer prima facie evident - Held, both individual and company treated as joint consumers; purchase not for commercial purpose per Larger Bench ruling on private company use by family directors (Paras 29-31).

(C) Consumer Protection Act, 1986 - Manufacturer-dealer liability - Principal-to-principal relationship does not absolve manufacturer from warranty obligations or defective goods liability; both jointly liable for defects during warranty, dealer for service deficiency - Replacement/refund extreme relief, limited to compensation reflecting usage/depreciation (Paras 34.8-34.9, 37).

Facts of the case:
New luxury vehicle purchased in February 2012 developed abnormal engine noise within 2½ months, leading to gearbox replacement after one-month workshop stay; subsequent issues with vibrations, steering switch, air suspension persisted, vehicle unrepairable and lying at dealer since August 2012 (11,906 km run); disputes over ownership documents, tampering allegations, external impact defence rejected; expert inspection noted unusual gearbox replacement and broken suspension link.

Findings of Court:
Vehicle defective, causing repeated early repairs; no conclusive manufacturing defect but inherent issues established; both dealer and manufacturer jointly liable; 50% purchase price as compensation with 6% interest from August 2012, dealer retains vehicle.

Issues: (1) Consumer status where mixed ownership documents; (2) Proof of defect/manufacturing defect sans mandatory expert test; (3) Liability extent for dealer/manufacturer; (4) Quantum of relief.

Ratio Decidendi: 'Defect' broadly covers faults/shortcomings; repeated early troubles suffice without expert opinion if evidence cogent; no commercial purpose for family company use; principal-to-principal limits service liability but not product defect/warranty; compensation over replacement for partial usage.

Result: Appeal allowed; OPs to pay 50% car price (Rs.18,34,500) + 6% interest w.e.f. 07.08.2012.

Table of Content
1. factual background of car purchase and defects (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. appellant's arguments on consumer status and defects (Para 11 , 13)

zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA IN THE NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI RESERVED ON : 19.02.2026 PRONOUNCED ON : 13.04.2026 FIRST APPEAL NO. 03 OF 2017 (Against the order dated 07.11.2016 in CC No. 46 of 2012 of State Commission UT Chandigarh

1. Gursimran Singh Walia Appellants s/o Sh. Kawaljit Singh Walia r/o H No. 523, Sector 36-B, Chandigarh

2. M/s Commando Caterers Pvt. Ltd.

SCO No. 491-492 Sector 35-C, Chandigarh through its Director Gursimran Singh (IA No. 86 of 2017 filed by Appellant)

Versus

1. Jaycee Automobiles Pvt Ltd Respondents Plot No. 171, Industrial Area Phase-I, Chandigarh, through its Managing Director/

Authorised Signatory (Authorized dealer of Audi India)

Present address for service of Respondent No.1 Jaycee Automobiles Private Limited G.T.Road, Opp. Dhandari Kalan Railway Station, Ludhiana Respondent Nos.2 & 3 now known as

2. M/s Audi India, 3, North Avenue Skoda Auto Volkswagen India Private Level-3, Maker Ltd.

Maxity, Bandra, Kurla Complex Registered Office : E-1, MIDC Industrial Bandra ( East), Mumbai Area Phase -III throughits President / Managing Director/

Village Nigoje, Mhalunge Kharabwadi Director Chakan Taluka: Khed, Pune-410 501

3. M/s Audi India-A Division of Registered Office : Silver Utopia, 4th Volkswagen Group Sales India Pvt. Ltd.

Floor, ‘Manufacturer, Skoda Auto India Pvt. Cardinal Gracious, Chakala, Andheri Ltd. (SAIPL), Aurangabad, Maharashtra (East), Mumbai-400099 Through its Divisional Manager / Director (IA No. 19602 of 2019 filed by R-2)

FA/3/2017 Page 1 of 87 BEFORE:zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA HON'BLE DR. INDER JIT SINGH, PRESIDING MEMBER HON’BLE DR. JUSTICE SUDHIR KUMAR JAIN, MEMBER For the Appellant(s) Mr. Deepak Agarwal, Advocate Mr. Kawaljit Singh Walia, Auth. Rep.

For R-1 Ms. Deboshree Saha, Adv. (VC)

For R-2 & R-3 Ms. Ekta Bhasin and Mr. Sanidhya Sonthalia, Advocate (VC)

ORDER

DR. INDER JIT SINGH, PRESIDING MEMBER

1. The present First Appeal (FA) has been filed by the Appellant against the Respondents as detailed above, under section 19 of Consumer Protection Act 1986, against the order dated 07.11.2016 of the State Consumer Disputes Redressal Commission UT Chandigarh (hereinafter referred to as the ‘State Commission’), in Consumer Complaint (CC) no. 46 of 2012 inter alia praying for setting aside the order of the State Commission dated 07.11.2016.

2. The Appellant was complainant and the respondents were the Opposite Parties before the State commission.

3. Notice was issued to the Respondents on 19.04.2017. Appellant filed their written arguments on 05.03.2026 while Respondent Nos. 1 and 2 filed their arguments on 02.03.2026. For the sake of convenience, the parties will be referred to as they were arrayed before the State Commission.

4. Brief facts of the case, as emerged from the FA, Order of the State Commission and other case records are complainant was one of the Director of M/s Commando Caterers Pvt. Ltd. He filed the CC No. 46 of 2012 before the State Commission alleging deficiency in service on the part of the Opposite Parties no.1 and 2 before the State Commission.

FA/3/2017 Page 2 of 87 The said complaint was dismissed by the State Commission on 18.03.2013. Being aggrieved, the Complainant went in Appeal No. 321 of 2023 before this Commission which was allowed vide order dated 29.01.2016 and complaint was remitted to back to the State Commission with directions to get the vehicle examined by experts.

5. The complainant in his complaint stated that he was one of the Director of M/s Commando Caterers Pvt. Ltd. and intended to purchase a new car of AUDI make for his personal use, for which he contacted OP No.1, an authorised dealer of the.company. The representatives of OP No.1 represented that the performance of the car was excellent and of hi

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2026 Supreme(Online)(NCDRC) 375

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSIONINDER JIT SINGH, Presiding Member, SUDHIR KUMAR JAIN, JGursimran Singh Walia – AppellantVersusJaycee Automobiles Pvt Ltd – RespondentFIRST APPEAL NO. 03 OF 2017|CC No. 46 of 2012

New vehicle with early repeated defects constitutes 'defect'; expert opinion not mandatory if cogent evidence; company director personal use qualifies as consumer; manufacturer-dealer jointly liable for compensation, not full replacement.

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
INDER JIT SINGH, Presiding Member, SUDHIR KUMAR JAIN, J
Gursimran Singh Walia – Appellant
Versus
Jaycee Automobiles Pvt Ltd – Respondent
FIRST APPEAL NO. 03 OF 2017|CC No. 46 of 2012