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Supreme Court of India 2024-07-09 partly_allowed

PVT. LTD vs M/S CONTROLS & SWITCHGEAR

Bench: 2 — Bela M. Trivedi, Pankaj Mithal

In Brief

This case involved three consolidated appeals addressing whether a company purchasing vehicles for its directors' personal use qualifies as a "consumer" under the Consumer Protection Act, 1986. The Supreme Court held that the dominant purpose of purchase—not the identity of the purchaser—determines consumer status. A company purchasing cars for directors' personal use without nexus to profit-generating activity remains a consumer. The Court also addressed airbag safety failures in Mercedes-Benz cars: failure to disclose deployment triggers constituted unfair trade practice, and non-deployment of airbags despite frontal impact indicated deficient service. The appellant manufacturer was ordered to refund Rs. 36 lakhs with Rs. 5 lakhs each awarded for deficiency in service and unfair trade practice.

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Consumer Protection Commercial Purpose Unfair Trade Practice Product Defect Safety Features Misrepresentation Disclosure Requirements Deficiency in Service

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