Consumer commission directs auto dealer to pay Rs 10K compensation

The District Consumer Disputes Redressal Commission, Chandigarh, has directed an auto dealer to pay Rs 10,000 compensation to a city resident after it failed to change his name in the registration certificate (RC) of his old vehicle sold in an exchange offer.

In a complaint filed before the commission, Purshottam Lal said he had purchased a new car after paying Rs 12,53,718 and adjusting the value of the old car under a buy back scheme offered by the Courtesy Honda, Lally Automobiles India, Chandigarh.

He handed over his old car to the dealer along with RC and other documents and the dealer issued possession letter dated November 15, 2022.

He said under the buy-back offer the dealer assured him that the change in the RC of the old car would be done within two months from taking possession of the old car, but even after two months the dealer neither got the name changed nor got issued new RC.

The complainant alleged that even after several requests the dealer did not get the name changed in the RC and advised him to get the RC blocked. Accordingly, he got the RC blocked. Thereafter, he made several requests to the dealer for intimating the name of the purchaser and handing over his RC, but nothing was done.

Alleging the act of the dealer deficiency in service and unfair trade practice on their part, he filed the complaint. On the other hand, the dealer in its reply stated that it had taken the old vehicle of the complainant and took the responsibility for any future liability.

The dealer claimed that complainant himself opted to trade in Honda City car with the new vehicle. The complainant took the benefit of the same and got the procurement price of the same of Rs 1,90,384 and got the new vehicle.

They gave the brand new car after adjusting the old vehicle’s price and took the chance of vehicle sale to subsequent purchase and accordingly gave the possession letter. The vehicle was not registered as the complainant informed the RTO Office to not to register the vehicle. Thus the ownership of the vehicle could not be changed as the complainant himself stopped the registration of the vehicle, the dealer added. Denying any deficiency on its part, all other allegations made in the complaint have been denied being wrong.

After hearing of the arguments, the commission said it was clear that the RC was not transferred by the dealer in the name of purchaser within two months from the date of taking possession from complainant. By not getting the RC transferred in the name of purchaser in spite of taking possession of the vehicle for more than two months, there is certainly deficiency on the part of the dealer, which caused a lot of mental agony and physical harassment to the complainant.

The commission said in view this the dealer was directed to pay Rs 10,000 to the complainant as compensation for causing mental agony and harassment and pay Rs 7,000 as costs of litigation.