CASE-4
Ireo
Grace Realtech Pvt. Ltd. Versus Abhishek Khanna & Others Civil Appeal No.
5785 Of 2019 (Supreme Court )
Bench
-Dr Dhananjaya ,Y Chandrachud, Indu Malhotra, Indira Banerjee.
Decided
on –January11, 2021
Law Point
1.
Whether the provisions of the Real
Estate (Regulation and Development) Act, 2016 must be given primacy over the
Consumer Protection Act, 1986;
Supreme
Court on the issue of Supremacy of RERA Act over CP Act made it clear that both
the acts are equal and not conflicting or inconsistent to each other
Observation and Verdict by SC as per the Provisions of CP Act & RERA Act
·
Consumer Protection Act not in
derogation of any other law. The provisions of this Act shall be in addition to
and not in derogation of the provisions of any other law for the time being in
force. This was clear in section 3 of CP Act 1986 and also Section 100 of CP
Act 2019
·
Section 79 of the RERA Act bars any
civil proceedings in Real estate matters but does not bar Consumer
Commissions to initiation proceedings before it, Consumer commissions
are not civil courts
·
Section 88 "Application of other laws
not barred" - The Real Estate (Regulation and Development Act, 2016)
the provisions of this Act shall be in addition to, and not in derogation of,
the provisions of any other law for the time being in force.
·
Similar
is the provision in Consumer Protection Act 1986 Section -3 and section 100 of
CP Act 2019.
·
Section 71(1) of the RERA Act entitles
a complainant who had initiated proceedings under the CP Act before the RERA
Act came into force, to withdraw the proceedings under the CP Act with the
permission of the Forum or Commission and file an appropriate application
before the adjudicating officer under the RERA Act
Case -5.
Honda Cars India Limited vs. Sudesh Berry CIVIL
APPEAL NO.6802 OF 2021 (Arising
out of SLP (C) No.11986/2020)
Decided
on 12 November, 2021
Facts
A Car was purchased by the complainant from “Honda
City Cars” in the year 1999. It worked fine till 26.09.2010 after ten years of use,
it met with an accident and suffered huge damages the car was taken to the
authorized service centre for repairs. The surveyor estimated cost of repairs to
the tune of Rs.1, 50,000/-Service centre later enhanced the charges of repair
from Rs. 15000/- to Rs 240000/-
Matter
comes to District Forum ,dealer and service
centre found guilty of indulging in
unfair trade practice for enhancing the charges of repair from Rs.1,50,000/-
State
commission confirmed District forum order with observation that Complainant had
not shown any manufacturing defect to dealer or service centre at the time of
delivery of the damaged vehicle for repair, hence no liability can be fixed on manufacturer
,OP No -2 in the case .
National
Commission found that for some reason or the other, the car was not repaired
and every time whenever approached, the estimated cost of “repairs” was at an
escalated rate. However, considering the facts and circumstances on record,
National Commission held
“We,
therefore, in the interest of justice, request Dealer and manufacturer, the
Respondents No.1 & 2 in the case to provide a brand new Honda City car to
the Petitioners on payment of a nominal sum of Rs.2,50,000/-. This would be
towards the goodwill gesture.”
Legal
Issues;
·
Whether any liability can be fastened to
manufacturer incise of dealer &service centre fail to give satisfactory
repair to accidental car.
·
Whether there was any unfair trade
practices followed by Dealer ,service centre and Manufacturer
SC Held; as the facts on record show that the
car was used by complainant in the original case for more than 10 years, where
after it suffered an accident. There is not an iota of material that the
accident occurred as a result of any manufacturing defect. If there be any
deficiency in service by the dealer or the authorized centre in rendering
assistance for repairs of the vehicle, the manufacturer of the vehicle cannot
be held liable.
Case
-6.
TATA
Motors Ltd. v. Antonio Paulo Vaz & Another, 2021 SCC Online SC 125
(
Similar case with same issue)
Legal
issue –
·
Whether selling old and used car by
dealer holds manufacturer liable
·
Whether dealer and manufacturer hold
Principal to principal relations
Facts
Facts admitted in this
case that the car in dispute was make of 2009 but the registration was done for
the 1st time in the name of the Complainant in 2011 It was a used vehicle which
had travelled almost 622 kms at the time of drive test. In the light of these
facts and observations, the District forum held that there was deficiency in
the service committed by the dealer and the manufacturer. The manufacturer
preferred an appeal, State Commission dismissed the appeal. National commission
also confirmed State commission Order
Hence
this appeal by Manufacturer. The manufacturer highlighted that the crux of the
complaint was that he was misled by the dealer, and an old car with old model
of 2009 having already driven 622 km was
sold to him in 2011.There was no allegation of manufacturing defect
SC
Observed
Found fundamental error
in holding manufacturer deficient because –
Invoice by which the
car was sold to the dealer is dated 28th of February 2009 to contend that the
title to the property, i.e. the car in question had passed to the dealer in
2009.
No manufacturing defect
is pointed out.
Manufacturer and dealer
have Principal to Principal relation and not of Principal to agent. In the
present case manufacturer observing this kind of mal practices had cancelled
the dealership contract with Tata Motors which further establishes the
character of their contractual relationship
Manufacturer not held
liable for the wrongs of dealer
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