Supreme Court Closes Controversy, Directs Ford India to Pay Rs. 36.87 Lakhs in Defective Vehicle Case

In a recent judgment, the Supreme Court of India put an end to a long-standing dispute between Ford India Private Limited and Medical Elaborate Concept Private Limited & Ors. The Court directed Ford India to pay Rs. 36.87 lakhs to the first respondent, minus the amount already deposited with the State Commission, in a case concerning a defective Ford Titanium Endeavour 3.4L vehicle.

The Court stated in Its order, “Taking into consideration the totality of the circumstances and it being an admitted fact that the vehicle had some manufacturing defects and despite replacement of the engine, the vehicle has been alleged to be not roadworthy, we deem it appropriate to close the controversy and dispose of this appeal.”

The controversy began when the first respondent purchased the vehicle from Ford India’s authorized dealer and subsequently faced various issues, including oil leakage. The State Commission accepted the complaint and ordered the replacement of the engine, as well as a daily compensation of Rs. 2,000/-. However, even after the engine replacement, the vehicle was still plagued with problems, rendering it unsuitable for driving.

During the proceedings, the Court explored the possibility of an amicable settlement but was unable to reach an agreement. Consequently, the Court issued directions, requiring Ford India to pay the balance amount of Rs. 36 lakhs within two weeks. Additionally, Ford India was directed to reimburse the first respondent Rs. 87,000/- towards the insurance of the vehicle.

The Court's judgment also specified that upon receipt of the aforementioned amounts, the first respondent would hand over the vehicle to Ford India, effectively transferring ownership. Furthermore, the attachment orders passed by the State Commission were set aside, and all pending proceedings between the parties were deemed terminated.

This judgment by the Supreme Court provides a significant resolution to the dispute, ensuring compensation for the defective vehicle and bringing closure to the protracted legal battle.

Date of Decision:5^th July, 2023

FORD INDIA PRIVATE LIMITED  vs M/S. MEDICAL ELEBORATE CONCEPT PRIVATE LIMITED & ORS. 

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