Mercedes, dealership directed to pay Rs 2.85 lakh relief in Chandigarh, replace defective parts

Dhiman Switchgear Private Limited, Chandigarh, through its director Gurnam Singh, stated that it had purchased a Mercedes Benz C 200 for the personal use of its director from IJM Panjab Motors Private Limited, an authorised dealer of Mercedes Benz India Private Limited, for a total consideration exceeding Rs 57,00,000, including Rs 56,05,500 invoice value and Rs 1,19,000 insurance, besides Rs 5,05,907 spent on registration.

The complainant alleged that despite assurances that the vehicle was a world-class, defect-free product, post-delivery the car exhibited inherent manufacturing defects, particularly in the key features “Mercedes Me App and Car Communication” that facilitate remote access and control of various vehicle functions such as keyless entry, engine ignition, air conditioning, tracking, etc.

It was also alleged that the application was non-functional from the very beginning and despite multiple complaints through emails, starting from January 15, 2024, followed by visits to the service centre at least five occasions, the defect persisted without any resolution, causing mental agony and inconvenience.

The complainant said additional issues were also highlighted, including malfunctioning of the panoramic sunroof curtain, system validation (80A Fuse), malfunctioning of passenger seat, rear curtain, and leakage of washer fluid bottle, which were also acknowledged in various emails; however, despite e-mail intimating that the back-end team of dealership is working with experts of manufacturer, till date, no solution has been provided.

The complainant sent a legal notice on February 19, 2024 to the dealership and manufacturer, but without effective remedy.

Mercedes-Benz India Private Limited, in its written reply, stated that the vehicle in question, manufactured/assembled by them, has undergone stringent quality checks at every stage of production and has been duly tested. Also, the vehicle was used in connection with the business of the complainant, which also claimed depreciation and tax benefits on the vehicle, thereby confirming commercial usage and negating the complainant’s consumer status, while the complainants have failed to produce any such expert report to substantiate their allegations, it said.

The dealership, IJM Punjab Motors, in its written reply, stated that the present complaint is not maintainable as neither of the complainants falls within the definition of “consumer” under the Consumer Protection Act, 2019. It was said that the complainant “being a Private Limited Company is a commercial entity and has admittedly purchased the vehicle for commercial purposes, as reflected in the registration and invoicing records.

The Commission held that Dhiman Switchgear Private Limited qualifies as a “consumer” being a purchaser for personal use, and Gurnam Singh, Director of firm who suffered the brunt of service deficiencies, also qualifies to file the present complaint on behalf of the company and himself; thus, the complaint is maintainable.

The Commission further stated, “In the present case, it is pertinent to note that the complainants have not submitted any independent technical expert report or engineering assessment to conclusively establish the presence of any inherent manufacturing defect in the vehicle at the time of delivery…Mere inconvenience or malfunctioning of components does not, in and of itself, constitute proof of an inherent defect, especially in the absence of authoritative technical evidence. On the contrary, during the pendency of this complaint, the complainant himself has placed on record an email dated May 1, 2025, which was received from the manufacturer and dealership.

The Commission, thus, ordered Mercedes-Benz India and its dealership IJM Punjab Motors to replace the defective parts of the front left side memory seat of the vehicle and to pay Rs 2.50 lakh as compensation for mental agony and harassment, and also Rs 35,000 towards litigation expenses to Gurman Singh.