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C.N. ANANTHARAM versus M/S. FIAT INDIA LTD. AND ORS. ETC. ETC.

Citation: [2010] 15 S.C.R. 619 · Decided: 24-11-2010 · Supreme Court of India · Bench: ALTAMAS KABIR · Disposal: Disposed off

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Judgment (excerpt)

[2010] 15 (ADDL.) S.C.R. 619 
C.N. ANANTHARAM 
v. 
MIS. FIAT INDIA LTD. AND ORS. ETC. ETC. 
(Special Leave Petition (C) Nos.21178-21180. of 2009) 
NOVEMBER 24, 2010 
[ALTAMAS KABIR AND CYRIAC JOSEPH, JJ.] 
Consumer Protection Act, 1986: Deficiency in service 
A 
B 
- Purchaser of diesel vehicle complained to the dealer about 
defect in the performance of the vehicle and in its engine -
c . 
. He alleged that the diesel vehicle made rattling noise -
Dealer replaced the engine and few other parts - Purchaser 
insisted on replacement of the vehicle with a new vehicle -
Filed complaint before Consumer Forum seeking 
replacement of vehicle and in the alternative refund of the 
D 
purchase price along with expenses - Dissatisfied with the 
orders of District Forum and State Commission, the purchaser 
approached National Commission - National Commission 
directed the dealer and the manufacturer to remove the defect 
and deliver it to the purchaser after certification of an 
independent technical expert that the vehicle was free from 
any defect - Held: An engine operating on diesel makes a 
rattling noise which does not occur in petrol driven engines 
and in view of that there was really no manufacturing defect 
E 
F 
in the vehicle as complained of by the purchaser - In such 
circumstances, the order passed by the National Commission 
was not unreasonable - Apart from the complaint relating to 
noise from the engine and the gear box, there was no other 
major defect which made the vehicle incapable of operation, 
particularly when the engine was replaced with a new one -
Directions given by the National Commission upheld with 
G 
further direction that if the expert opines that the vehicle has 
inherent manufacturing defects, the purchaser would be 
entitled to refund of the price of the vehicle and the lifetime 
619 
H 
620 
SUPREME COURT RF.PORTS [2010] 15 (ADDL) S.C.R 
A tax and EM/ along with in:2rest @ 12% p.a. and costs. 
The complainant-p~!titioner purchased a diesel 
vehicle from a dealer, the second respondent and got it 
registered in his name. After the registration, he took the 
vehicle on a drive and found certain defects in the 
8 VEihicle particularly in the engine. On the same day, he left 
the vehicle with the dealer for removing the defects. The 
engine and few other parts were replaced. The petitioner 
was still not satisfied with the performance of the vehicle 
and informed the dealer that the vehicle had inherent 
C defects which could not be repaired and insisted on 
replacement of vehicle with a new one or for refund of 
purchase price together with the expenses incurred by 
him in trying to rectify the defects in the vehicle. On not 
receiving any response, the petitioner filed a complaint 
D before the District Forum. The District Forum allowed the 
complaint and directed the first and second respondents 
to refund the claimed amount, together with interest @ 
12% P.A. and a sum of Rs.5000 towards cost of legal 
proceedings. The State Commission modified the order 
E of the District Forum and directed the first and second 
respondents to replace the vehicle with a brand new one 
and on failure to do so to refund the purchase price of 
the vehicle along with road tax and the monthly 
instalments paid by the petitioner along with the interest 
F @ 12% P.A. from the date of order. Aggrieved, the 
respondents filed revision before the National 
Commission. The National Commission held that the 
petitioner could not prove any manufacturing defect, but 
directed the dealer and the manufacturer to remove the 
G defects, if any, in the vehicle and make it roadworthy, if 
necessary by reconditioning the vehicle and deliver it to 
the petitioner in the presence of an independent technical 
expert who would certify that the vehicle was free from 
any defect and the same would be final for all purposes. 
H 
C.N. ANANTHARAM v. M/S. FIAT INDIA LTD. AND 
621 
ORS. ETC. ETC. 
The petitioner filed the instant special leave petitions 
~ 
challenging the order of the National Commission. 
Disposing of the special leave petitions, the Court 
HELD: 1. The question which emerged after 
B• 
considering the submissions made on behalf of 
I 
respective parties was whether the manufacturing 
company and by extension the dealer/agent was under 
anv compulsion to replace the vehicle itself when the 
engine of the vehicle from which certain noises were 
allegedly emanating had been replaced. It was explained . C 
that an engin

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