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Consumer Case Studies
 
National Consumer Disputes Redressal Commission, New Delhi
 
M B Shah, President and Mrs Rajyalakshmi Rao, Member
 
M/s FIAT India Ltd - Petitioner
Versus
M/s Amardeep Motors Ltd & Anr - Respondents
 
Revision Petition No. 1952 of 2000 Decided on 12-04-2005
 
(i) Consumer Protection Act, 1986 - Section 2(1)(e) - Consumer dispute - Booking of FIAT car with dealer - Full payment made - Not remitted to manufacturer - Complaint allowed directing refund with interest, cost and compensation - Contention that dispute between dealer and manufacturer be also seen in deciding liability to pay - Whether has any substance? (No).

(ii) Consumer Protection Act, 1986 - Section 21(b) and 14 - Award of interest on refund @ 18% - in similar case interest reduced to 12% - Whether be done in this case also? (Yes).

Result: Revision partly allowed accordingly.
 
IMPORTANT POINT

Once the manufacturer has appointed a person as his dealer then it does not lie in his mouth to say that he is not liable to refund the amount received by its dealer.
 
ORDER
 
M B Shah, President - Being aggrieved and dissatisfied with the judgement and order dated 25.09.2000, passed by the State Consumer Disputes Commission, U T Chandigarh in Appeal No. 55/2000, Petitioner, M/s FIAT India Ltd has preferred this Revision Petition. The Complainant, D S Cheema, filed Complaint Case No. 67/1998 before Consumer Disputes Redressal Forum, U T Chandigarh, contending that he had booked FIAT Uno Car with Premier Automobiles (Opponent No.1) through Amardeep Motors Ltd (Opponent No.2) and had paid Rs. 21,000/- as the booking amount. He had also paid a further amount of Rs. 3,22,165/- to the dealer, Amardeep Motors Ltd. It was contended that despite making full payment, the car was not delivered. Hence, the complaint was filed and the District Forum by its judgement and order dated 01.12.1998 allowed the same and directed the dealer, as well as, the manufacturer to refund the amount with 18% interest from the date of deposit and also awarded refund of Rs. 15,000/- paid towards registration charges, as well as, Rs. 25,000/- as compensation and Rs. 2,000/- as costs.

Against that order, the manufacturer preferred the appeal as stated above. That appeal was dismissed by the State Commission by observing that the appeal of the dealer was dismissed and that inter se dispute between the dealer and the manufacture was not required to be dealt with in the appeal.

At the time of the hearing of this revision application, Learned Counsel for the Respondent referred to the judgment rendered by this Commission in R P No. 1018 of 2002 decided on 06.01.2005 dealing with similar contention and with regard to the same dealer and the Petitioner. In that petition also, the contention of the Petitioner that the manufacturer was not liable to pay the amount because the dealer has not paid the same to the manufacturer, was dealt with and negated by holding that the dispute between the manufacturer and the dealer was not required to be decided or dealt with in such cases as the dealer is the agent of the manufacturer. In this case also, Amardeep Motors Ltd were the agents of the Petitioner.

In our view, once the Petitioner has appointed Amardeep Motors Ltd as its dealer, it does lie in the mouth of the Petitioner to state that the Petitioner is not liable to refund the amount recovered by its dealer. Amardeep Motors Ltd may be its agent or the relationship between the Petitioner and Amardeep Motors may be that of the principal to principal basis but to the public at large he represents the manufacturer as the agent/dealer of the company dealing with motor vehicles. In this view of the matter, there is no substance in the aforesaid contention.

Learned Counsel for the Petitioner, however, submitted that award of interest @ 18 % is on higher side and in R P No. 1018 of 2002, this Commission has reduced the same to 12%. As against this, Learned Counsel for the Complainant submitted that in the present case, facts are totally different. Complainant was required to borrow the amount from the Deptt of Public Health, Govt of Punjab, where he was serving and was required to pay interest 12% + penal interest 6%.

Considering the facts, the order of the District Forum awarding the interest @ 18% is modified and the Petitioner is directed to pay the amount as directed by the District Forum with interest @ 12% per annum. Revision Petition is partly allowed accordingly. Petitioner to pay costs of Rs. 2,000/- to the Complainant.

Revision partly allowed accordingly.