ORDER JUSTICE J.M. MALIK 1. This common order will decide two cross revision petitions, detailed above, which arise from the orders passed by the State Commission dated 19.03.2009. Sh. S.P.N. Singh, the complainant, placed an order for purchase of a motor car, using it for personal capacity, on 17.09.1996, for with Hindustan Motors Limited, OP1 through its Dealer, Ess Pee Automotives Ltd., OP2. He paid a sum of ₹ 3,13,599/- towards the price of the car. He took delivery of the car on 08.08.1996. 2. Immediately, certain defects cropped up in the car. Its body and speedometer were found defective during the first service. The defect in the speedometer was rectified. After sometime, more defects were detected in the car, viz., the colour of the body faded and there was very high consumption of mobile oil. The complainant lodged a complaint with the appellants vide letter dated 19.10.1996. Again the complaint was lodged on 10.05.1997. The first service was done at 6000 kms and it transpired that the engine had consumed one litre of oil only on a run of 2000 kms. On 10.05.1997, the same manufacturing defect was detected. The car was examined by a Mechanic on 10.05.1997, but it did not ring the bell. On 03.06.1997, the authorized agent of OP1-Hindustan Motors Ltd., checked the vehicle but the vehicle consumed one litre of mobile oil on a running of 400 kms only. 3. The OPs requested the complainant to change the mobile and to observe consumption thereof on a run of 500 kms. The OPs suggested change of rings which was eloquent of inherent manufacturing defects in the engine of the car. On 16.06.1997, the complainant made a request to the OPs for replacement of the defective engine with a new and defect free engine for on run of 6000 kms only. All the four rings of the car were changed and, therefore, the resale value of the car was considerably lowered down. Such change of rings generally expected after over two years. Despite the said change, the car did not give good service. Ultimately a complaint was filed with the District Forum, on 01.07.1997. The complainant had to spend ₹ 400/- per day for hiring a taxi. There was correspondence between the parties but it did not produce the desired result. 4. The OPs resisted the complaint before the District Forum. They contended that the complainant is not a consumer, because the car was purchased by Ashok Chitra Pvt. Ltd., Patna and not by the complainant. Again, the defects in the car were removed. The car was used for commercial purposes. OP2-Ess Pee Automotives Ltd., averred that Hindustan Motors Ltd., was the manufacturer which provides warranty of the vehicle and the defects quoted by the complainant were directly remitted to the warranty policy given by the manufacturer. It contended that as its workshop was inundated with rain water, there was delay in repairing of the vehicle. However, the District Forum found the OPs to be negligent in providing service to the complainant and it directed them to take/receive all the parts of the engine of the car lying in the premises of the complainant and to replace the said engine with new one or with the one which was identical to the engine which was fitted in the car at the time of purchase thereof, within two months of receipt of the order, failing which, the OPs must pay to the complainant the amount of money which was the price of the value of the engine at the time of purchase thereof, with interest @ 9% p.a. 5. The State Commission passed the following order :- “Admittedly, no such car is nowadays, being manufactured. The District Forum directed the appellants to replace the defective old engine with a similar new engine. The complainant had sought for replacement of the said car with a new one or for payment of present market sale value of the car with interest thereon @ 18%. Considering the entire facts and circumstances attending to the case, we are of the opinion that the appellants should be directed to deliver the new car in place of old one or to pay to him the present market sale value of the car with interest thereon @ 18% for, the car supplied to the complainant remained all along lying and it could not be used by the complainant and his purpose of having a car was defeated. Let the appellants be accordingly directed to deliver new car to the complainant or to pay to him the present market sale value of the car with interest thereon @ 18% per annum with effect from the date of filing of the complaint. The impugned order stands modified to that extent. In the result, both the appeals failed and they are dismissed and the cross appeals stand allowed. Litigation cost of ₹5,000/- is also allowed to the complainant”. 6. We have heard the counsel for the parties on both the revision petitions. The first submission made by the counsel for Hindustan Motors Ltd, OP1 was that the complainant is not a consumer on two counts. The attention of the Commission was invited towards Customer Order Form dated 19.07.1996, where the name of the purchaser as Ashok Chitra (P) Ltd. Budh Nagar, M.S.P. Nagar, Patna, is mentioned. It also mentions Order No. M/RNo.252, dated 15.07.1996. 7. The counsel for the OP1 also referred to Job Cards dated 21.11.1996, 31.12.1996, 21.02.1997, 16.05.1997, 02.02.1998, 02.05.1998, 04.06.1999, which mention the name of the customers as Ashok Chitra C.P. Ltd., in tandem. 8. On the other hand, the Sale Certificate reveals that the car was sold and certificate issued to the complainant SPN Singh. The name of the person to whom the car was delivered and Sale Certificate was prominently recorded in Annexure1, clause (a), as SPN Singh. However, Ashok Chitra (P) Ltd, Rang Bahadur Budh Marg, Patna was also mentioned therein as the address of the complainant. Similarly, the customer details were detailed in Annexure I, where Ashok Chitra Pvt. Ltd., as well as SPN Singh were written in the column prescribed for name and address. It is also clear from the judgment of the State Commission that he was the Managing Director of M/s. Ashok Chitra Pvt. Ltd. The complainant is a big farmer having his cultivable land in other Districts of Gaya and Nalanda. He has to look after these places and manage his cultivation and other properties. Consequently, conveyance was necessary for him which he utilizes for personal use. 9. Instead of touching the heart of the problem, the learned counsel for the petitioner just skirted it. It must be borne in mind that the Ashok Chitra C.P. Ltd. had booked this car through the complainant S.P.N. Singh. This must be borne in mind that this is a consumer case and it will not be proper to enter into these technicalities. The case is pending over since more than two decades and nobody else has claimed the ownership of the car. It will not be proper to add a party, after elapse of 18 years. This argument is without force and has to be eschewed out of consideration. 10. The second submission made by the counsel for the OP1 was that the car was used for commercial purposes. 11. This argument was stated for its outright rejection. The cause of action has arisen prior to the amendment of C.P.Act, 1986, which was amended in the year 2003. There is not even an iota of evidence that the car was used for commercial purposes. The possession taken by the complainant for the purpose of personal use. Consequently, we see no merit in this argument, as well. 12. The last submission made by the counsel for the petitioner that the order to replace the car is not legal. 13. Both the fora below have come to the conclusion that the defects in the car pointed above were never removed. There was high consumption of mobile oil. Hindustan Motors Ltd., itself admitted that is Mechanical Engineer examined the car and suggested for replacing of all the four rings and after replacement thereof, it was assured that engine would run for 25000 kms or for one year, whichever happened earlier. The fora below came to the conclusion that the replacement of rings on 6000 kms only reflected that some basic and congenital or manufacturing defects in the engine. 14. It is also noteworthy that the car was lying with the OP2-Ess Pee Automotives Ltd. for about one month, in the year 1997. The defects could not be removed. The complainant had to spend ₹ 400/- on taxi, every day. 15. During the pendency of this case, the complainant got the car examined on 15.07.2005 by an Expert, named, Sh.L.K. Sinha, Retired Mechanical Engineer. The said Expert examined the car in presence of representatives of both the parties as well as the owner of the car. The Expert found cylinder block, cylinder head, assembly crank , graft pestle of the car was unassembled and was found lying behind the cinema hall (Ashok Chitra Pvt. Ltd.) He found that there was a hole in cylinder No.1 and cylinder Nos. 2 and 3 were found with mobile oil. Sh. L.K. Singh reported that as piston ring had been removed and it was not available, therefore, he was not able to give his opinion. The Expert opined that ordinarily, no mobile oil was to be consumed on run of 5000 to 7000 kms. He gave his lengthy report. The car was having inherent manufacturing defect in cylinder assembling. 16. As a matter of fact, the counsel for the OP1 did not pick up a conflict with the above said defects. It stands proved beyond doubt that the engine of the car was defective. 17. On the other hand, the counsel for the OP 2-Ess Pee Automotives Ltd. argued that he cannot be held liable for the manufacturing defects. In this context, he has invited our attention towards Hindustan Motors Ltd, & Anr. Vs. N. Shiva Kumar & Anr., (2000) 10 SCC 654, wherein at Para No.5, it was held as under :- “The observations of the National Commission to the following effect : An apprehension has been expressed by the dealer that the burden of this may ultimately fall upon the dealer. We make it clear that for the manufacturing defects in the vehicle, the dealer cannot be held liable. The liability must be borne by the manufacturer”, are also maintained”. 18. Consequently, we accept his prayer to this extent only. OP2 cannot be held liable for the manufacturing defects. However, he has no explanation to give, why did he detain the car for one month. He should have handed over the car to the complainant there and then. He is also liable for the negligence, inaction and passivity for which we impose costs of ₹ 50,000/- upon him, which be paid by him, to the complainant, for harassment, mental agony and for coming to his service station, time and again, which be paid to the complainant, within 90 days’ from the date of receipt of this order, otherwise, it will carry interest @ 9% p.a., till its realization. 19. Now, we advert to the case of OP1. It is made clear that he is alone held responsible for the manufacturing defects. To that extent, the dealer is absolved of the said liability. In Hindustan Motors Ltd. & Ors. Vs. Shiv Kumar & Anr. (supra). The Hon’ble Apex Court held that where the OPs stopped manufacturing of the said model and under those circumstances, the Supreme Court’s finding no other way, except to direct the appellants to comply with the State Commission’s order for refund of money along with interest, compensation and costs directed to be paid therein. Succinctly stated to that extent, the order of the State Commission will prevail. 20. However, we will like to give alternative remedy to the OP1, wherein the OP1 is directed to return the car in road-worthy position, to the complainant, after changing the engine of the car, within 15 days’ of receipt of the copy of this order. OP1 will further give warranty and three free services for a period of one year. The OP1 is given liberty to produce or provide the requisite spare parts and rectify the defects, within 15 days’ from the receipt of this order, otherwise, the complainant will be entitled to costs of ₹ 500/- per day, till the car is handed over to him. This period will extend upto 30 days. Thereafter, the order of the State Commission shall become executable. The OP1 will write to the complainant immediately of the kind of choice they will have, so that the complainant will get sufficient time to produce the car, where it is to be rectified. 21. The appeal filed by the OPs is frivolous and vexatious. They have wasted the time of the complainant and that of this Commission. The complainant could not have the benefit of the car for the last 18 years’. It is the choice of the OP1 to opt for any of the remedies stated above, but under all the eventualities, we further impose costs of ₹ 1,00,000/- on OP1, in favour of the complainant , for harassment and mental agony. The said costs be paid within 90 days, from the date of receipt of this order, otherwise, it will carry interest @ 9% p.a., till its realization. |