Refund money paid for defective car: Tribunal

NEW DELHI: A consumer grievances resolution tribunal says automakers will have to refund the price of a new car to buyers if the vehicle turns  out defective.

“The cost of the goods (vehicles) should be refunded, to end the dispute once for all, as replacement of defective goods by new goods is not a solution,” Delhi consumer commission president justice JD Kapoor held while directing Tata Motors to compensate the buyer of a defective Tata Indigo car.

Justice Kapoor passed the order in an appeal filed by Tata Motors Ltd, challenging the district consumer forum’s order directing the auto major to replace the defective Tata Indigo bought by one Manoj Gadi. It was a “misconceived notion” that goods purchased cannot be replaced and the price cannot be refunded, justice Kapoor said.

Gadi purchased a Tata Indigo in 2006, which turned out to be defective. The problem persisted even after servicing at an authorised workshop. Gadi tried to get his car replaced but failed. He moved the consumer redressal forum. The commission rejected the company’s contention that there was no manufacturing defect and held that it was the manufacturers’ responsibility to prove that the vehicle did not suffer from any infirmity.

Tata Motors also drew the commission’s flak for contending that Gadi failed to adduce expert evidence that there was manufacturing defect in the vehicle.