Companies told to refund amount in full for defective car

Panaji: The District Consumer Disputes Redressal Commission, South Goa, directed Kia Goa to refund the entire amount paid towards a Kia Seltos vehicle, together with registration charges, road tax, hypothecation endorsement charges, and mandatory insurance, to complainant, Jose Fernandes, over a defective brand-new motor vehicle.

The forum also directed the company to pay the complainant Rs 1 lakh as compensation for mental agony and harassment, and another Rs 50,000 towards litigation costs.


The consumer commission stated that it was “satisfied that the complainant suffered considerable mental agony, harassment, and inconvenience”.

Although the complainant claimed compensation of Rs 50,000, the commission observed that this was “inadequate and not reflective of the hardship endured” and directed compensation of Rs 1 lakh for mental agony and inconvenience, as well as Rs 50,000 towards litigation expenses, totalling Rs 1.5 lakh, to be paid to him.

The commission stated that the company cannot be permitted to retain the entire amount paid by the complainant since early 2023, continue to derive financial benefit from it, and at the same time deprive the complainant of the use and enjoyment of a brand new vehicle from the date of booking.

“It is a settled principle of law that no party can be allowed to take advantage of their own wrong,” stated commission president Sanjay Chodankar and member Jayson Rodrigues.

It added that, “Consumer law does not compel a consumer to accept a structurally compromised new product. The complainant cannot be compelled to accept a defective vehicle. The complainant also suffered mental agony, financial stress, and uncertainty while being liable for repayment of the loan without enjoying the use of the vehicle. The complainant is therefore entitled to full refund and consequential reliefs,” the commission stated.