Case Note & Summary
The dispute arose from a consumer complaint regarding the delivery of a Tata Victa GX TC Car. The appellant, having paid the full sale consideration, alleged that the dealer delivered a used car instead of a new one. The District Forum initially ruled in favor of the appellant, ordering the dealer to replace the used car and awarding compensation for mental agony. This decision was upheld by the State Commission. However, the National Commission later set aside these findings, stating that there was insufficient evidence to prove the car was used. The appellant challenged this decision in the Supreme Court, arguing that the National Commission improperly interfered with the factual findings of the lower forums. The Supreme Court found that the National Commission had acted beyond its jurisdiction by overturning the concurrent findings of the District Forum and State Commission, which had established that the car delivered was indeed used and defective. The court emphasized that the dealer was obligated to deliver a new car as per the agreement. Consequently, the Supreme Court quashed the National Commission's order, restored the District Forum's ruling, and directed the dealer to comply with the original order, including the payment of costs.
Headnote
A) Consumer Protection - Unfair Trade Practice - Delivery of Defective Goods - Consumer Protection Act, 1986, Section 21 - The dealer's failure to deliver a new car after full payment constituted unfair trade practice. The court held that the National Commission exceeded its revisional jurisdiction by overturning concurrent findings of fact regarding the delivery of a used car (Paras 7-12).
Issue of Consideration
Whether the National Commission erred in setting aside the findings of the District Forum and State Commission regarding the delivery of a used car instead of a new one.
Final Decision
The Supreme Court quashed the National Commission's order, restored the District Forum's ruling, and directed the dealer to deliver a new car and pay costs of Rs.1 lakh, with Rs.50,000 to the appellant and Rs.50,000 to the Mediation and Conciliation Project Committee.
Law Points
- Consumer rights
- unfair trade practice
- revisional jurisdiction
- delivery of defective goods
- compensation for mental agony



