Second-hand luxury car not returned after repairs, dealer ordered to pay Rs 3.89 lakh

The dealer allegedly accepted full payment for car, re-took possession under pretext of repairs, and then failed to return either the vehicle or the money. (AI-generated Image)

The District Consumer Disputes Redressal Commission, Kangra, has ordered a car dealer to refund Rs 3.52 lakh to a man who bought a second-hand luxury car from him, after finding that the dealer allegedly accepted full payment for a car, re-took possession under the pretext of repairs, and then failed to return either the vehicle or the money.

A bench of president Hemanshu Mishra and members Arti Sood and Narayan Thakur also ordered the dealer to pay Rs 30,000 for mental agony and Rs 7,500 in litigation costs.

“Retaking possession of the vehicle under the pretext of conducting repairs, retaining both the vehicle and the full payment, and ignoring the complainant’s requests for delivery or a refund constitutes a gross deficiency in service and an unfair trade practice under the Consumer Protection Act, 2019,” the commission said on September 3.

The order noted that the failure to deliver a mechanically sound, operational vehicle after collecting the full agreed consideration constitutes a failure to fulfill fundamental contractual obligations.

Dealer promises to repair, took car

The complainant purchased a second-hand luxury car from a car dealer. Trusting the representations of the dealer, the complainant transferred an initial token amount of Rs 90,000 via Google Pay on the same day. Subsequently, on June 25, 2024, the dealer demanded Rs 45,000 for service and repairs, which was duly paid through Google Pay.

Later, on August 27, 2024, an additional sum of Rs. 2.10 lakh was transferred from the account of the complainant’s father to the dealer’s account, making the total consideration paid to the dealer Rs. 3.52 lakh.

The complainant claimed that despite receipt of the full payment, the vehicle presented severe operational issues immediately upon delivery, specifically regarding its battery and general mechanical condition. It was submitted that when notified, the dealer assured that the defects would be rectified and re-took possession of the vehicle under the promise of returning it in good working order.

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However, the complainant alleged that the dealer failed to return the repaired vehicle and made excuses, ultimately refusing either to deliver the car or to refund the money.

Alleging deficiency in service and unfair trade practice on the part of the opposite party, the complainant has filed the present complaint before the consumer commission. On the other hand, the dealer had not appeared; accordingly, the opposite party was proceeded against ex parte.

Payment proven through records: Order

The commission noted that the complainant successfully proved via affidavits and bank records that a total sum of Rs 3.52 lakh was paid in three installments toward the purchase and repair of the second-hand luxury car.

The commission said that collecting the full agreed amount but failing to deliver a mechanically sound, operational vehicle was deemed a failure to fulfill fundamental contractual obligations.

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Takeaway

The ruling highlights that car dealers cannot retain both a buyer’s money and the vehicle after taking possession for promised repairs. It reinforces that failure to deliver an operational vehicle after receiving full payment can amount to a deficiency in service and an unfair trade practice, exposing dealers to refunds and compensation under consumer law.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Himachal Pradesh: 1800-180-8087) or dial the National Consumer Helpline at 1915 for assistance.

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Jagriti Rai works with The Indian Express (Digital), where she writes from the vital intersection of law, gender, and society. Working on a dedicated legal desk, she focuses on translating complex legal frameworks into relatable narratives, exploring how the judiciary and legislative shifts empower and shape the consciousness of citizens in their daily lives. Expertise Socio-Legal Specialization: Jagriti brings a critical, human-centric perspective to modern social debates. Her work focuses on how legal developments impact gender rights, marginalized communities, and individual liberties. Diverse Editorial Background: With over 4 years of experience in digital and mainstream media, she has developed a versatile reporting style. Her previous tenures at high-traffic platforms like The Lallantop and Dainik Bhaskar provided her with deep insights into the information needs of a diverse Indian audience. Academic Foundations: Post-Graduate in Journalism from the Indian Institute of Mass Communication (IIMC), India’s premier media training institute. Master of Arts in Ancient History from Banaras Hindu University (BHU), providing her with the historical and cultural context necessary to analyze long-standing social structures and legal evolutions. ... Read More