Keywords: Ford India, Manufacturing Defect, Supreme Court, Consumer Complaint, Compensation
The Supreme Court recently issued a ruling directing Ford India Ltd. to compensate a customer with Rs. 42 lakhs for purchasing a car with manufacturing defects. The case revolves around a Ford Titanium Endeavour 3.4L owned by the consumer.
After the owner filed a consumer complaint, highlighting issues like oil leakage since the car’s initial use, the State Commission ordered Ford to replace the engine free of charge and pay a daily sum of Rs. 2,000. This decision was upheld by the National Commission, leading Ford India to appeal to the Supreme Court.
While the appeal was pending, Ford proceeded to replace the car’s engine. However, even after the replacement, the vehicle remained unsuitable for road use, causing dissatisfaction for the owner due to various problems affecting smooth driving.
In light of these circumstances, Justices Surya Kant and Dipankar Datta, forming a bench, ruled that Ford should provide a compensation of Rs. 42 lakhs. Since the company had already paid Rs. 6 lakhs as per the State Commission’s orders, the remaining amount of Rs. 36 lakhs was to be paid. Additionally, Ford was directed to pay Rs. 87,000 towards the vehicle’s insurance. Once the owner received the total amount of Rs. 36,87,000, they were obligated to surrender the vehicle to the company.[1]
Lisa Gupta, NUSRL, Ranchi, Semester 3, an intern under Legal Vidhiya
[1] Live Law https://www.livelaw.in/top-stories/supreme-court-directs-ford-india-to-pay-rs-42-lakhs-to-owner-of-ford-titanium-endeavour-manufacturing-defect-232239 Last Visited 08.07.2023, 12:30 pm.
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