Manufacturing Defect In Car : Supreme Court Directs Ford India To Pay Rs 42 lakhs To Owner Of Ford Titanium Endeavour
The Supreme Court recently directed Ford India Ltd. to pay Rs. 42 lakhs as compensation to a consumer who purchased a car which had manufacturing defects. The issue related to a Ford Titanium Endeavour 3.4L owned by the consumer.The owner had filed a consumer complaint before the Punjab State Consumer Commission pointing out various defects, including oil leakage from the very beginning...
The Supreme Court recently directed Ford India Ltd. to pay Rs. 42 lakhs as compensation to a consumer who purchased a car which had manufacturing defects. The issue related to a Ford Titanium Endeavour 3.4L owned by the consumer.
The owner had filed a consumer complaint before the Punjab State Consumer Commission pointing out various defects, including oil leakage from the very beginning of the use of the car. The State Commission ordered the company to replace the engine free of cost and pay 2,000 rupees per day. The National Commission also affirmed this order, following which Ford India appealed to the Supreme Court.
During the pendency of the appeal before the Supreme Court, Ford replaced the engine of the car. However, even after the engine replacement, the car was not roadworthy. The owner said that there are numerous problems in the vehicle which makes smooth driving difficult.
Taking into consideration these facts, the bench comprising Justices Surya Kant and Dipankar Datta directed Ford to pay Rs 42 lakhs to the owner. Since Rs.6 lakhs was already paid by the company following the orders of the State Commission, Ford was required to pay the remaining Rs.36 lakhs. In addition, they were also directed to pay 87,000 rupees towards the insurance of the vehicle.
On receipt of the amount (Rs 36,87,000), the owner has to hand over the vehicle to the company.
Case title: Ford India Pvt Ltd v. M/S. MEDICAL ELEBORATE CONCEPT PRIVATE LIMITED & ORS.
Citation : 2023 LiveLaw (SC) 515