Dealer ‘secretly’ repaired new Swift Dzire before delivery, buyer wins Rs 6.6 lakh refund

Holding a car dealer liable for unfair trade practice by failing to disclose pre-sale repairs before handing over a new vehicle to a man, the Kerala State Consumer Commission has upheld a direction to refund the full purchase price of Rs 6.44 lakh to the buyer, besides awarding Rs 15,000 towards compensation and litigation costs.

President Sudheendra Kumar observed that Indus Motors had repaired the car’s body twice before delivering it to the complainant. “The opposite party (dealer) also concealed the said fact from the complainant and delivered the vehicle to the complainant, which would, no doubt, amount to unfair trade practice and deficiency in service on the part of the opposite party. Consequently, the submission made by the learned counsel for the appellant in this regard does not hold good,” the June 5 order noted.

The complainant purchased a brand-new Maruti Swift Dzire car from the opposite party on June 19, 2014, for Rs 6,44,033, and in December 2015, the complainant noticed that the paint coating on the car’s bonnet was peeling off in a few places. He immediately approached the dealer and informed them of the issue. The dealer attributed the problem to the humid weather. The complainant then requested to rectify the defects, but the dealer turned it down.

The complainant then approached AVG Motors, an authorised service centre in Kumbazha, who in turn informed him that the painting on the bonnet was not original, and advised him to take a detailed record of the maintenance work done on the vehicle.

Subsequent verification revealed that the vehicle was subjected to repair for an amount of Rs 66,408 at Indus Motors , Kothamangalam, on two occasions before it was delivered to the complainant. This prompted the complainant to file a complaint against the opposite party, alleging deficiency in service.

The dealer filed a written version denying the contentions in the complaint, and said the dealers often received vehicles from the manufacturers with some damage due to its handling during transportation. In the event of sustaining any damage as above, the parts concerned were replaced with genuine parts.

They argued, therefore, even if the vehicle was repaired, that would not change the model or make or the nature of the vehicle as a new vehicle, and there was no unfair trade practice or deficiency in their service.

Story continues below this ad

After evaluating the evidence, the district commission directed the dealer to refund the purchase price of the car with interest, and also directed them to pay Rs 50,000 as compensation and Rs 10,000 as costs to the complainant.

Unfair trade practice: Commission

It is admitted by the dealer that the vehicle supplied to the complainant had sustained damage twice.

Even otherwise, there is no dispute that the body work of the car was done twice due to damage prior to its delivery to the complainant.

There is no contention that the complainant was informed that the body work of the car was done by Indus Motors before the vehicle’s delivery to the complainant.

It was also found that the dealer concealed the aforementioned from the complainant before selling, which amounts to unfair trade practice and a deficiency in service on its part.

Appeal allowed with modifications

The state panel observed that the district commission had directed the dealer to refund an amount of Rs 6,44,033 to the complainant. However, it did not direct the complainant to hand over the vehicle to them, and in the said circumstances, the state forum directed him to hand over the vehicle when the refund is made.

However, considering the facts and circumstances of the case, the commission said the compensation ordered by the district forum can be reduced from Rs 50,000 to Rs 10,000 and the costs ordered can be reduced from Rs 10,000 to Rs 5,000, to secure the ends of justice.

Consumer takeaway

The ruling underscores that the dealer has legal responsibilities when a new vehicle is delivered. Dealers are under a statutory obligation to ensure that a vehicle has been properly scrutinised before handing it over to the new owner, and cannot hide facts from the purchaser regarding the repairs made to the vehicle before selling.

Story continues below this ad

It also highlights that a company, when proven deficient in part of their service, has to compensate the consumer with whatever is deemed necessary by the consumer court. Aggrieved consumers may contact the consumer helpline in their respective states (Kerala helpline: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.