Replacement of product

2012 PLD 264 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

Ss.6, 8 & 31(b)Consumer protectionReplacement of productChange of gearbox of car

Consumer purchased brand new car and due to some manufacturing defect its gearbox leaked and the same was replaced by the manufacturer

Trial Court decreed the case in favour of consumer and directed manufacturer to replace defective car with brand new one

Plea raised by manufacturer was that such relief conferred unjust enrichment upon consumer because of increased value of new model and diminished value of purchased vehicle due to its continuous use by consumer as it did not have the same impact and was liable to be treated differently

Validity

Original manufacturer's seal of gearbox was broken and replaced locally

New gearbox supplied in sealed condition by manufacturer was not fitted in the vehicle

Unsealing of gearbox was as serious as unsealing of engine of a new vehicle

Trial Court was correct to hold that consumer was supplied a defective car by manufacturer and that its repair by dealership diminished its value so as to deprive the consumer of brand new car that he had purchased

Consumer demanded replacement of vehicle at the time of detection of defect and took delivery of repaired vehicle after signing customer's satisfaction report under protest

Manufacturer was liable for defective construction of gearbox housing and for breach of warranty by consequent repair that the engine installation and gearbox assembly remained in original condition

Manufacturer's liability had arisen under the provisions of Ss.6 and 8 of Punjab Consumer Protection Act, 2005

High Court directed the consumer to return his purchased vehicle to manufacturer who would forthwith refund the full price thereof received from consumer

High Court further directed that in case consumer did not return the vehicle to manufacturer he would lose his right of receiving accrued profit on the price paid, resultantly judgment passed by Trial Court was modified

Appeal was dismissed accordingly.