SC asks BMW to pay ₹50 lakh as compensation to customer for defective car
The Hindu
Supreme Court orders BMW India to pay ₹50 lakh compensation for defective car, setting aside Telangana High Court's decision.
The Supreme Court has directed luxury car maker BMW India Private Ltd to pay ₹50 lakh as compensation to a customer for supplying a defective car in 2009.
A bench of Chief Justice D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra set aside an order of the Telangana High Court quashing the prosecution against the auto major and asking the company to deliver a new vehicle to the complainant in place of the defective one.
"Bearing in mind the facts and circumstances of this case, we are of the considered view that the manufacturer, BMW India Private Limited, should be directed to pay a consolidated amount of ₹50 lakhs in full and final settlement of all claims in dispute. The manufacturer shall pay this amount to the complainant on or before August 10, 2024 by electronic transfer of funds," the bench said in its July 10 order.
It said conditional on the payment being made by the manufacturer to the complainant, the order of the high court quashing the complaint and the direction for the replacement of the old vehicle with a brand new vehicle shall stand set aside.
"The claims of the complainant shall stand duly satisfied on the payment of compensation quantified at ₹50 lakhs in terms of the above order," the bench said.
The bench took note of the fact that, as far back as in June-July 2012, the manufacturer had offered to replace the old vehicle with a brand new vehicle in compliance with the order of the high court.
"However, this was not acceded to by the complainant. Had the complainant used the vehicle, it would have depreciated in value until date," the bench noted.