German car major to pay Rs 55,000 compensation
Chennai: The state consumer disputes redressal commission has directed a German-based car manufacturing giant and its dealer to pay a compensation of Rs 55,000 to a person for not delivering a luxury car within the stipulated time. The commission has also directed the dealer to refund in two months the advance of Rs 75,000 he paid.
Petitioner M. Mohaideen of Purasawalkam said he booked a Vento car on October 25, 2010 with ABRA Motors Pvt Ltd, Anna Salai, paying an advance of Rs 75,000. The dealer assured him that the car would be delivered in five months. However, despite repeated requests, it was not delivered. On August 11, 2011, he issued a notice to the dealer and after a delay of 10 months, on June 12, 2012, he received a reply from the dealer.
He said as ABRA Motors failed to deliver the car, he was constrained to book a similar model with another agency on April 25, 2012, and took the car on May 5, 2012 at an escalated cost of Rs 12.45 lakh. He approached the commission seeking direction to ABRA Motors and Volkswagen Group Sales India Pvt Ltd, Mumbai, to pay a compensation of Rs10 lakh for causing mental agony and Rs2.25 lakh for suffering monetary loss due to non-delivery of the car in time.
Denying the allegations, ABRA Motors stated that he booked a car specifying black colour as his first choice and white, second, on payment of a token advance of Rs75,000. A black colour car was received from the manufacturer in August 2011, and it was communicated to him over telephone. Mohaideen demanded heavy discounts saying the delivery had been delayed. Hence, there was no deficiency in service, the dealer stated.
The bench, comprising president, Justice R. Regupathi, judicial member J. Jayaram and member P. Bakiyavathi, said the failure to deliver the car even beyond the agreed period of five months amounts to deficiency of service. “We hold that there was deficiency of service on the part of the dealer and manufacturer for not delivering the car in time and we hold that the complainant was entitled to get compensation from ABRA Motors,” the bench added. The bench directed the parties to jointly and severally to refund the advance amount with interest of 12 per cent per annum from October 2010 and a compensation of '55,000 for causing mental agony.