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General Motors (India) Pvt. Ltd. v. Ashok Ramnik Lal Tolat

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 8072-8073 of 2009)Decided 9 Oct 2014
Civil Appeal Nos. 8072-8073 of 2009
Justice V. Gopala Gowda · Justice Adarsh Kumar Goel

Background

A buyer purchased a Chevrolet Forester after advertisements presented it as suitable for off-road journeys. Consumer forums found the description misleading. The National Commission ordered a refund against return of the vehicle and also imposed Rs. 25 lakh in punitive damages concerning other buyers, although that collective claim had not been pleaded.

Decision Breakdown

The Supreme Court upheld the finding of unfair trade practice and left the buyer's refund and litigation-cost relief in place. It set aside the separate punitive-damages award because the manufacturer had received no notice of such a claim or opportunity to answer it. Consumer protection's broad purpose does not remove the obligation to follow fair procedure. The Court did not decide the merits of a properly raised collective punitive-damages claim and left aggrieved parties free to bring one in the appropriate forum.

Lesson Learnt

When seeking consumer relief, state the remedy and its factual basis in the complaint. Even a seller found to have misled buyers must receive a fair opportunity to answer a separate claim for punitive damages.

Official source (sci.gov.in)View Judgment (PDF)

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