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Not giving new car even after taking full amount is unfair trade activity: Supreme Court

Highlights

Supreme Court said – not giving the right vehicle for money is unfair trade activity
Dealer’s dishonesty not to deliver new car
Compensation of one lakh rupees should be given to the complainant.

New Delhi. The Supreme Court on Thursday said that non-delivery of a new car or giving a defective vehicle even after paying the full amount is unfair trade practice. The top court said that non-delivery of the new car even after paying the full amount shows the dishonesty of the dealer and it is also against the ethics. The court made this observation in the case related to the purchase of a car. The complainant had alleged that the vehicle was delivered to him after one year of depositing the total amount. The complainant claimed that the car given to him was old and the dealer had used it as a ‘demo test drive’.

A bench of Justice MR Shah and Justice Krishna Murari set aside the January 2016 decision of the National Consumer Disputes Redressal Commission (NCDRC) in the matter. The NCDRC rejected the District Forum’s finding that the car given in the case was a used vehicle. Whereas the order of the Forum was confirmed by the State Commission. The Commission, while modifying the order of the District Forum in the matter, directed that the complainant should be given a compensation of Rs. The District Forum had directed the dealer to take back the car and give a new vehicle to the complainant in lieu of the amount deposited earlier.

Unfair business activity

He was also asked to pay Rs 5,000 for mental agony of the complainant and Rs 2,500 as legal expenses. The complainant had challenged the decision of NCDRC in the apex court. The court, in its judgment, said that the complainant had ‘booked’ the new car and paid the full amount. In such a situation, it was the responsibility of the dealer to give him a new car. The bench said, “The National Commission also found that there was a defect in the car which was given. Giving a defective car in place of a new car is also not acceptable at all… Not giving the right car for money is an unfair trade activity. The court said that the direction of the District Forum and the State Commission to give a new car to the dealer was justified. The bench, setting aside the decision of the NCDRC, restored the order of the District Forum of April, 2011. This order was also confirmed by the State Commission.

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