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Fiat Group Authomobiles India Pvt. Ltd. ... vs Swadesh Yadav
2024 Latest Caselaw 28170 MP

Citation : 2024 Latest Caselaw 28170 MP
Judgement Date : 14 October, 2024

Madhya Pradesh High Court

Fiat Group Authomobiles India Pvt. Ltd. ... vs Swadesh Yadav on 14 October, 2024

Author: Pranay Verma

Bench: Pranay Verma

                                NEUTRAL CITATION NO. 2024:MPHC-IND:29208   -1-

                                IN THE             HIGH COURT                    OF MADHYA PRADESH

                                                                    AT I N D O R E

                                                                           BEFORE
                                               HON'BLE SHRI JUSTICE PRANAY VERMA



                                                      WRIT PETITION No. 27069 of 2024
                                FIAT GROUP AUTHOMOBILES INDIA PVT. LTD. NOW FCA INDIA
                                               AUTOMOBILES PVT. LTD.
                                                       Versus
                                             SWADESH YADAV AND OTHERS


                           Appearance:
                                Shri Surendra Kumar Gupta - Advocate for the petitioner.

                           _________________________________________________________________

                                                                           ORDER

(Reserved on 24/9/2024)

(Pronounced on 14/10/2024)

1. This petition under Article 226 of the Constitution of India has

been preferred by the petitioner being aggrieved by the order dated

02/07/2024 (Annexure P/1) passed by the National Consumer Dispute

Redressal Commission whereby the revision preferred by it has been

dismissed and the revision preferred by respondent No.2 has been partly

allowed.

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -2-

2. The short facts of the case are that respondent No.1 had purchased

a Fiat Linea Multijet Active Diesel vehicle from the dealer respondent

No.2. As per respondent No.1 the vehicle had certain manufacturing

defects for rectification of which he had visited the workshop of the

dealer repeatedly even during the warranty period but the problem was

not rectified. He complained that there was a problem of the steering

wheel and the vehicle used to swerve to the left. Despite repeated efforts

having been made by the dealer the said problem could not be rectified,

which amounts to a manufacturing defect.

3. On such contentions a complaint was filed by respondent No.1

before the District Consumer Redressal Forum for replacement of the

vehicle with a new vehicle and for damages. Upon being noticed the

opposite parties filed their reply. The Consumer Forum appointed an

expert Shri G.S. Institute of Technology and Science, Indore for

submission of the report on the alleged manufacturing defect. The report

of the expert was submitted on 18/12/2018 in which it was stated that the

problem relating to the steering misbehaviour is still existing in the

vehicle which needs to be resolved to ensure a comfortable drive. The

service history during initial stages of purchase indicates that there was a

repeated problem relating to steering and company had tried to overcome

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -3- it. It was also stated that it is unclear if any investigation was made by the

company for checking malfunction in power steering pump, air pockets

in power cylinder, oil leakage from power cylinder or defects in hinges of

strut of front wheels. On the basis of the said report the District Forum

held that the vehicle was suffering from manufacturing defects. In

consequence it directed for a new vehicle to be given to respondent No.1

and in alternate to pay a sum of Rs.8,66,283/- to him being the value of

the vehicle. The said order was affirmed by the State Consumer Dispute

Redressal Forum by order dated 21/4/2022 in appeal having been

preferred by both the opposite parties. In further revisions preferred by

both of them, while the finding of existence of manufacturing defect in

the vehicle has been maintained by the National Consumer Dispute

Redressal Commission, but the petitioner has been held liable to pay

2/3rd of the value of the vehicle by the impugned order.

4. The aforesaid order has been challenged by the petitioner on the

ground that it cannot be said that there was any manufacturing defect in

the vehicle. When the inspection of the vehicle was done it had already

covered 50,000 Kms. which itself proves that it was roadworthy. Had

there been any manufacturing defect, the vehicle would not have run for

such a long time and for so many kilometers. Up to 18/10/2021 the

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -4- vehicle had been used for 83611 Kms. This extensive usage itself shows

that there was no defect in the vehicle and which in any case impacted

the nature and extent of any potential defects. It is further contended that

the National Commission has wrongly applied the principle of

proportionality and has directed the petitioner to pay 2/3 rd of the vehicle's

value. A reasonable deduction for the usage of the vehicle ought to have

been made. The report of the expert committee itself had clarified that

there was no defect in the vehicle. It is hence submitted by the learned

counsel for the petitioner that the impugned order deserves to be set

aside. Reliance has been placed upon the decision of the Apex Court in

the case of Universal Sompo General Insurance Company Ltd. V/s.

Suresh Chand Jain & Anr. 2023 SCC Online SC 877 and Maruti Udyog

Ltd. V/s. Susheel Kumar Gabgotra & Anr. (2006) 4 SCC 644. In

addition reliance has also been placed on certain decisions of National

Consumer Dispute Redressal Commission which is most unfortunate and

contemptous as the decisions of the Commission are not to be cited as a

precedent before the High Court.

5. I have considered the submissions of the learned counsel for the

petitioner and have perused the record.

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -5-

6. The vehicle was purchased by respondent No.1 on 17/2/2015. The

complaint was filed by him on 3/9/2015 itself. Within this short period

the vehicle had been taken by him to respondent No.2 for rectification of

the defects which were found therein on numerous occasions. He was

complaining of the defect that the vehicle swerves towards the left on its

own and does not run straight. The defect was tried to be rectified by the

dealer on numerous occasions but the same persisted. When despite

repeated attempts the defect could not be cured the complaint was filed

by respondent No.1 as the vehicle was neither replaced nor any amount

paid to him. The vehicle was within the warranty period.

7. During the proceedings before the District Consumer Forum an

expert was appointed by the Forum whose report was submitted on

18/12/2018 in which the following conclusion were arrived at :-

"(a) - Problem related to steering misbehaviour is still existing in the vehicle,

(b) - Problem needs to be resolved to ensure a comfortable drive,

(c) - Service history during initial stages of purchase of vehicle indicates that there was a repeated problem related to steering and the company had tried out certain solutions to overcome it,

(d) - It is unclear if any investigations were made by the company for checking malfunction in power steering pump, air pockets in power cylinder, oil leakage from power cylinder or

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -6-

defects in hinges or struct of front wheels."

8. From a bare perusal of the aforesaid report, it is evident that even

after a period of almost four years from the date of purchase of the

vehicle the problem relating to steering misbehaviour still existed in it. It

was opined that the problem needs to be resolved to ensure a comfortable

drive. Service history showed that there was a repeated problem relating

to steering and it was unclear as to what steps had been taken by the

company for resolving the same. The report of the expert by itself proves

that there was a manufacturing defect in the vehicle. If the vehicle

swerves to the left on its own and does not run straight the same is bound

to be a manufacturing defect and nothing else. This defect existed not

only during the initial visits of respondent No.1 to the dealer but even

after the vehicle had run for more than four years. Thus the contention of

the learned counsel for the petitioner that there was no manufacturing

defect in the vehicle cannot be accepted.

9. Only for the reason that the vehicle had run 83611 Kms. by

18/10/2021, it cannot be said that there was no manufacturing defect in it.

Learned counsel for the petitioner has attempted to canvass before this

Court that had there been any manufacturing defect in the vehicle the

respondent No.1 would not have run the same. The said submission is

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -7- preposterous. Respondent No.1 could not have been expected not to use

the vehicle till the defect was cured. In the initial few months after

purchase of the vehicle he took the same to respondent No.2 for

rectification of the defect but the same was not rectified. He had paid a

substantial amount for purchase of the vehicle and if due to fault of the

company and dealer he was not able to run the same smoothly, he cannot

be charged with of having still used the vehicle. If he continued to use the

vehicle even with the manufacturing defect, which he would have

logically done having paid a considerable amount for the vehicle, it

cannot be held that there was no manufacturing defect.

10. The Commission has itself deducted an amount of 1/3rd from the

cost of the vehicle for its use. Further it has held that the liability for

manufacturing defect has to lie with the manufacturer since it is he who

had manufactured the vehicle. The dealer has no or very little role to play

in manufacturing of the vehicle and he is only an intermediatory and

cannot be held liable for the same. The record indicates that respondent

No.2 had made repeated efforts for resolving the grievance of respondent

No.1 but since the same was beyond its control the same could not be

resolved. It was a manufacturing defect and dealer could hardly do

anything in that regard, the liability of which can only be of the petitioner

NEUTRAL CITATION NO. 2024:MPHC-IND:29208 -8- company. The judgments relied upon by the learned counsel for the

petitioner are not applicable to the facts of the case and hence do not help

him in any manner.

11. Thus, in view of the aforesaid discussion, I do not find any error

having been committed by the National Consumer Disputes Redressal

Commission in passing the impugned order dated 2/7/2024 which is

accordingly affirmed, as a result of which the petition is dismissed.

(PRANAY VERMA) JUDGE

SS/-

 
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