{"id":331261,"date":"2024-09-20T17:00:08","date_gmt":"2024-09-20T11:30:08","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=331261"},"modified":"2024-09-20T18:55:45","modified_gmt":"2024-09-20T13:25:45","slug":"car-manufacturer-hyundai-santro-liablity-omission-of-car-dealer-scdrc-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/09\/20\/car-manufacturer-hyundai-santro-liablity-omission-of-car-dealer-scdrc-legal-news\/","title":{"rendered":"Whether a car manufacturer be held liable for the wrongdoings\/omissions of a car dealer? SCDRC answers"},"content":{"rendered":"
\n

State Consumer Disputes Redressal Commission (SCDRC), Delhi:<\/span> In the instant appeal wherein the Commission had to deliberate whether a car manufacturer, can be held liable in the event a car dealer cannot be served with the DCDRC’s order; the Bench of Sangita Dhingra Sehgal, J<\/span>. (President)<\/span> and JP Agrawal (Member), after considering the facts of the case, held that a car manufacturer cannot be held liable for the omissions or wrongdoing on the part of the dealer.<\/p>\n

The complainant upon getting impressed by a lucrative deal on Hyundai Santro car via a newspaper advertisement, approached Respondent 1, who was an authorized dealer of Hyundai and deposited Rs 3.32 Lakhs. Copies of the receipts were given to the complainant.<\/p>\n

Respondent 1 assured the complainant that the car would be delivered to him on or before 31-9-2009. The same, however, did not happen and the complainant was told to wait till 10-2-2009.<\/p>\n

On 10-2-2009, when the complainant visited to take his car’s delivery, he was shocked to see that Respondent 1’s showroom was shut down. Hence, the complainant filed a police complaint alleging that he was cheated of Rs 3.32 Lakhs by Respondent 1. Furthermore, the complainant approached Respondent 2 (manufacturer) and Respondent 3 (customer relations officer) to complain, wherein he was assured that action would be taken on the matter within 3 working days.<\/p>\n

All efforts in vain, the complainant approached the DCDRC seeking delivery of the booked car, interest and compensation of Rs 1 Lakh for mental agony.<\/p>\n

The DCDRC upon considering the facts of the case held that the complainant had utterly failed to establish any nexus between himself and Respondents 2 and 3. The DCDRC however held that Respondent 1 could not escape his liability for breach of commitment and directed him refund the booking amount with interest.<\/p>\n

Aggrieved with the afore-stated ruling, the complainant approached the SCDRC stating that lack of Respondent 1’s current address prevented the execution of DCDRC’s order. The complainant further stated that since Respondents 2 and 3 have not admitted to the termination of their dealership with Respondent 1, therefore they cannot absolve themselves from liability.<\/p>\n

Perusing the matter, the SCDRC relying on relevant precedents of Supreme Court and NCDRC, noted that there was no manufacturer-dealer agreement on record, therefore the Commission assumed that the agreement was based on a principal-to-principal relationship.<\/p>\n

The SCDRC further noted that the booking amount paid by the complainant to Respondent 1 was not transferred to the manufacturer i.e., Respondents 2 and 3. Hence, there was no privity of contract between the complainant and Respondents 2 and 3; therefore, they cannot be held liable.<\/p>\n

With the afore-stated assessment, the SCDRC upheld the decision of DCDRC and the instant appeal was dismissed. <\/p>\n

[X v. Suhrit Hyundai, First Appeal No. 101\/2015, decided on 2-9-2024<\/span>]<\/p>\n

Order by Justice Sangita Dhingra Sehgal, President<\/span><\/strong><\/p>\n\n

Advocates who appeared in this case:<\/p>\n

Complainant:<\/span> Kapil Chawla, Advocate<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The complainant upon getting impressed by a lucrative deal on Hyundai Santro car via a newspaper advertisement, approached the authorized dealer of Hyundai and deposited booking amount, but did not receive the delivery as assured.<\/p>\n","protected":false},"author":3,"featured_media":331301,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[73330,73331,45916,50169,73329,58058,47982],"class_list":["post-331261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-car-dealer","tag-car-manufacturer","tag-consumer-case","tag-consumer-court","tag-hyundai-santro","tag-privity-of-contract","tag-scdrc"],"yoast_head":"\nWhether car manufacturer can be held liable for the wrongdoings\/ omissions of a car dealer? 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