Not delivering new car despite full payment unfair trade practice: SC

September 08, 2022 20:42

Representative image

The Supreme Court on Thursday said not delivering a new car or delivering a defective vehicle despite full payment of sale consideration can be said to be "unfair trade practice".

The apex court observed non-delivery of a new car despite full payment can also be said to be dishonesty on the part of the dealer and against morality and ethics.

The court's observations came on a case related to purchase of a car. The complainant had alleged the vehicle was delivered to him after one year of the deposit of the total amount.

The complainant had claimed the car delivered to him was old and was used by the dealer as 'demo-test drive vehicle'.

A bench of Justice M R Shah and Krishna Murari set aside a judgement delivered in January 2016 by the National Consumer Disputes Redressal Commission (NCDRC) in the matter.

The NCDRC had set aside the findings recorded by the district forum, which was confirmed by the state commission, that the car delivered in the case was a used vehicle.

While observing that the complainant had got a defective car, the NCDRC had modified the order passed by the district forum and directed that compensation of Rs one lakh be paid to him.

The district forum had directed the dealer to take back the car and deliver a new vehicle to the complainant against the previously deposited amount.

It had also awarded Rs 5,000 towards mental agony and Rs 2,500 towards litigation cost.

The NCDRC's judgement was challenged in the apex court by the complainant.

In its verdict, the apex court noted that the complainant had booked a new car and paid the entire sale consideration and the dealer was bound to deliver a new car.

"Even as per the findings recorded by the National Commission the car which was delivered was a defective car. Even to deliver the defective car against the new car was also not permissible," the bench said.

« Back to LIVE

TOP STORIES

Bibhav Kumar sent to 5-day police custody in Maliwal assault case

It noted the prosecution's submissions about the need to take Kumar to Mumbai and other parts of the national capital to collect evidence, which was not possible without the accused's custody.

AAP workers marching towards BJP HQ detained, Sec 144 imposed

The traffic police also issued an advisory in view of the protest planned outside the BJP office at the Deen Dayal Upadhyay Marg, while entry and exit have been disallowed at the nearest ITO metro station.

Factors that will guide the markets this week

The last batch of quarterly earnings, global trends and trading activity of foreign investors will guide the equity market movement in a holiday-shortened week ahead, analysts said. Volatility may continue amid investors' cautious...

'God's plan, baby': Yash Dayal redeems himself

Yash Dayal had the haunting memory of Rinku Singh's five consecutive sixes last year when Mahendra Singh Dhoni lofted his full-toss over the Chinnaswamy stadium roof in Saturday's crucial IPL match in Bengaluru.

Golden Girl Sobhita

After choosing the royal colour, Sobhita Dhulipala turned it up a notch higher and went for gold for her second appearance at the Cannes Film Festival.