Summary
The Supreme Court set aside consumer findings against a car manufacturer where a dealer had sold an older, used vehicle as new, but the complaint neither pleaded nor proved the manufacturer’s involvement or knowledge. The relationship on the facts was principal to principal; liability could not be inferred merely from the manufacturer’s defence or general supervision of dealerships. The consumer retained the right to execute the refund-and-interest relief against the dealer, while the manufacturer’s deposits were ordered returned with accrued interest.
Issues
- Whether the manufacturer could be held liable for the dealer’s misrepresentation without pleading and proof of its involvement or knowledge.
Provisions considered
- Section 2(1)(g), Consumer Protection Act, 1986Deficiency could not be attributed to the manufacturer on unsupported inferences where the material complaint concerned the dealer’s conduct. (¶¶ 24, 26-28)
Held
- The complaint did not allege any specific role or special knowledge of the manufacturer concerning the disputed sale. The dealer’s non-appearance and the resulting findings against it did not establish the manufacturer’s liability. (¶¶ 23, 26)
- On the contractual relationship and facts, the dealer dealt on a principal-to-principal basis. Its acts could not be imputed to the manufacturer merely from general dealership oversight, termination or the way the manufacturer defended the complaint. (¶¶ 21-22, 26-28)
- The vehicle had been supplied to the dealer approximately two years earlier. Without proof of the manufacturer’s involvement or knowledge, later use or deterioration while with the dealer could not support the findings against it. (¶ 28)
- The consumer could execute the alternative refund-and-interest relief through the District Forum. Amounts deposited by the manufacturer during the appeal were to be returned to it with accrued interest. (¶ 29)
Result
Appeal allowed; findings against the manufacturer set aside and its deposits with accrued interest to be refunded. Consumer’s alternative refund-and-interest remedy against the dealer preserved; no costs.