Chandigarh

DF-II

CC/418/2020

Lally Automobiles Pvt. Ltd. - Complainant(s)

Versus

M/s Krishna Automobiles - Opp.Party(s)

Aftab Singh Khara

03 Oct 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	418 of 2020
Date  of  Institution	:	31.08.2020
Date   of   Decision	:	03.10.2023

 

 

 

 

Lally Automobiles Pvt. Limited, Plot No.6, Industrial Area, Phase-I, Chandigarh 160002 through its authorized representative.

             …..Complainant

Versus

1]  M/s Krishna Automobiles, BMW Dealer, 125, Industrial Area, Phase-I, Chandigarh 160002 through its authorized representative.

2]  BMW India Private Limited, Registered Office at Second Floor, Oberoi Center, Building No.11, DLF Cyber City, Phase-II, Gurugram 122002 Haryana through its authorized representative.

    ….. Opposite Parties 

 

BEFORE:  MR.AMRINDER SINGH SIDHU, PRESIDENT

         MR.S.K.SARDANA,          MEMBER

   

Present:-  Sh.Aftab Singh Khara, Counsel for the complainant

Sh.Jagvir Sharma, Counsel for OP No.1

Sh.Shobit Phutela, Counsel for OP No.2.

 

 

ORDER BY AMRINDER SINGH SIDHU, M.A (Eng.),LLM, PRESIDENT

 

         The complainant has filed the present complaint pleading that the complainant company purchased a BMW 730 LDRL Car from OP No.1 on 09.11.2015 for an amount of Rs.57,50,000/- for self & personal use by the Director of complainant company and got it registered vide Regd.No.CH-01-BE-2442 (Ann.C-1 to C-3). The complainant also purchased service & maintenance package for the subject car inclusive of extended warranty from OPs on payment of extra amount of Rs.1,82,782/- vide Ann.C-5 & C-6.

         It is submitted that the complainant sent the vehicle to the OP No.1 for general service but surprisingly, the OP No.1 despite the fact that vehicle is under service and maintenance package including extended warranty, raised various bills for the service and repair of the vehicle.  It is also submitted that when enquired, the OP No.1 gave frivolous reply that the work done is not covered and there are certain exclusions as per the terms & conditions of the repair exclusive and raised an amount of Rs.2,22,524/ - being cost of parts and separate invoices were raised for Rs.58,920/- being cost of labour against repair for other works done on the vehicle (Ann.C-7). It is pleaded that the purpose of buying extended warranty was of no use as they were charging for the work done. It is also pleaded that OP No.1 did not give in written form the reasons for charging of such amount and there was a complete go by to the package policy and the complainant paid the bill amount under protest (Ann.C-8 colly.). Therefore, the present complaint has been filed with a prayer to direct OPs to refund an amount of Rs.1,82,782/- paid service consideration towards service & maintenance package; to refund service charges of Rs.2,80,445/- paid by complainant as well as compensation for the harassment and litigation cost.

 

2]       The Opposite Party No.1 has filed written version and while admitting the factual matrix of the case, stated that there is no privity of contract between the complainant and answering OP No.1 as the maintenance package is being offered by the manufacturer i.e. BMW India Private Limited and is being purchased by the customer. It is stated that OP No.1 is an authorized dealer of OP No.2 and is suppose to carry out the after sales service of the vehicles sold by the dealership or the vehicles manufactured by M/s BMW India Private Limited.  It is also stated that as the package cost is being received by the manufacturer and the dealership/OP NO.1 is suppose to carry out the maintenance of the vehicle as per the need of the owner of the vehicle, so the repair and maintenance charges are paid by the manufacturer and in case the manufacturer does not agree to pay the charges of service and maintenance of vehicle, the same are payable by the owner of the vehicle but in the present case, the dealership has received the charges of repair, service and maintenance of the vehicle from the complainant which were not agreed to be paid by the manufacturer. It is submitted that the car of the complainant was brought to the dealership with the concern of law engine oil level and after diagnosis the dealership topped up the engine oil level as per series standard. Further during diagnosis it has observed abnormal noise from engine compartment and after further inspection it was found that timing chains need to be replaced. It is stated that the complainant was also informed that the damages caused to the vehicle are due to not being maintained as per manufacturer's guidelines which resulted in the exclusion of the warranty benefits. It is submitted that the complainant got two years extended warranty in the year 2017 till 25.09.2019 and got the benefit of rs.7,73,701/- as the bills of maintenance were paid by the manufacturer. It is also submitted that the complainant being satisfied upgraded the warranty for another one of the year and had not to pay to the tune of Rs.1,44,974/-.  It is stated that the complainant paid the charges which were payable by it because of its failure to maintain and service its vehicle at the relevant intervals prescribed by the manufacturer and on this score only the manufacturer has not allowed the payment of repairs undertaken by the dealership.  It is also stated that by mail dated 17.02.2020 the representative of the complainant was informed that metal dust was found in the oil pump of the engine and in view of mileage covered by the car i.e. 146758kms and the current condition of the crank shaft and connecting rod bearings, oil pump, the bearing are recommended to be replaced. It is pleaded that the complainant failed to get the service done at the recommended intervals, therefore, the complainant lost its entitlement under the package on account of warranty norms. Denying other assertions, the OP NO.1 has prayed for dismissal of the complaint.

 

         The OP No.2 has also filed written version stating that the 5^thyear extended warranty package purchased by the Complainant on 09.11.2019 mentions the list of exclusions which duly highlights the occasions/events where the repairs/replacements under extended warranty shall not be covered, as is mention in the Package Certificate that the 'repairs for which the vehicle user is responsible engine damage due to deficiency of oil, over oil change, participation in race events' etc. such repairs shall not be covered under the extended warranty. It is pleaded that the Complainant has failed to maintain its vehicle as per the recommendations and guidelines prescribed by the manufacturer and that the Complainant on numerous occasions has failed to carry out engine oil servicing at regular intervals and has reported his vehicle for engine oil servicing at overdue mileages, which was brought to complainant’s notice through email dated 26.2.2020.  It is also pleaded that in the subject vehicle indication comes on the display unit showing about engine oil servicing/condition based servicing. It is stated that the relationship of OP No.1 with OP No.2 is not that of a principal and agent but that of a principal to principal. It is pleaded that the extended warranty package was purchased by the Complainant from authorized dealer i.e. the Opposite Party No.1 herein and not from OP No.2, therefore, no representation with respect to any repair package was given by OP No.2 to the complainant. It is also pleaded that the fact of overdue services of the vehicle and the reasons for non-applicability of the extended warranty package was conveyed to the complainant. Denying other allegations, the OP No.2 has prayed for dismissal of the complaint. 

 

3]       Replication has also been filed by the complainant controverting the assertions of OPs made in their reply.

 

4]       Parties led evidence in support of their contentions.

5]       We have heard the ld.Counsel for contesting parties and perused entire documents on record.

6]       The main issue to be determined in the present is as to whether the complainant is entitled to the service/repair charges incurred on the vehicle during extended warranty from the OPs or not?

7]       In order to find the answer to this issue, it is important to take into consideration, the following facts & circumstances of the case.

8]       The OP No.2 has placed on record an affidavit of Sh.Rathan Kabbachira Belliappa, Assistant Manager Technical Support & Warranty of OP No.2 Company taking the defence that 5^th year extended warranty package/BMW Repair inclusive purchased by the Complainant on 09.11.2019 mentions the list of exclusions which duly highlights the occasions/events where the repairs/replacements under extended warranty shall not be covered.

9]       The OPs have pointed out that the Package Certificate placed on record by the Complainant himself, which makes it clear that the ‘repairs for which the vehicle user is responsible engine damage due to deficiency of oil, overdue oil change, participation in race events’ etc., and it shall not be covered under the said extended warranty package. The instances of overdue engine oil servicing has been indicated as under:-

 

Date	Kilometers	Overdue KMs
07-07-2016	25473	-2400
04-11-2016	38374	-3200
08-03-2017	50082	-1300
09-06-2017	60318	-500
06-10-2017	73360	-3300
27-08-2018	103770	-1500
11-11-2019	140989	-800

 

10]      The Package Certificate (Annexure C-6) placed on record by the complainant himself specify the Customer Responsibility and Exclusions under Clause 4 & 5, which are reproduced as under:-

        4.     Customer Responsibility.

Your vehicle has to be regularly serviced (through authorised BMW dealers only) according to the manufacturer's requirements.  Whereby the calculated CBS oil service value (mileage or time) has been adhered to or  exceeded up to a maximum of 10% of the calculated value. Post this, any relevant claim may be refused by BMW. Customers have to present the package certificate provided by the dealer to avail the services as per the respective scope.

                5.     Exclusions

The following are not included in Repair inclusive:

-Fuel and contamination in the fuel system and consequential damage.

-Damage to pain finish, body, covers and panels.

-All kinds of glass defects and/or accidental damages (e.g. mirrors, windows, headlight housing, optical distortion, spots, blurriness etc.).

-Tyres, wheel balance weights and wheel damage.

-Repairs for which the vehicle user is responsible (engine damage due to deficiency of oil, overdue oil change and participation in racing events).

-Hydrostatic lock, flood and/or accidental damages.

                        -Towing costs in case of break down.

                        -Bulb, etc. (except LED and Xenon lights).

-Odours and dust accumulation related defects like wiper washing system nozzles etc.

-Repair or results caused by usage of original/non-original BMW accessories.

-In the event of a vehicle covered under BSI package/s and is involved in an accident rendering it beyond economical repairs/total loss, all packages will be annulled and no reimbursement will be made for the remaining period of the validity.

-Customer can request for cancellation of package within four weeks from the date of activation of package, provided no services have been availed on the car under any scope. No cancellation or refund will be made after the above stated period.

 

11]      From the above, it is clear that the complainant has failed to maintain & serviced the subject vehicle at the intervals prescribed by the manufacturer, therefore, the complainant is not entitled to get the repair/service cost under the benefit of extended warranty as per package certificate.

 

9]       In view of above discussion & findings, we are of the opinion that no case of deficiency in service is made out against the OPs. Therefore, the present complaint is dismissed with no order as to costs.

         Certified copy of this order be sent to the parties, free of charge. After compliance, file be consigned to record room.

Announced

03.10.2023

Sd/-

 (AMRINDER SINGH SIDHU)

PRESIDENT

 

Sd/-

(S.K.SARDANA)

MEMBER