Man sells car in 2019, gets challan in 2022: Dealer told to pay Rs 20,000 payout for lapse

‘Selling, buying and discount’

The complainant filed the consumer complaint arguing that he approached Berkleys Tata Motors for purchase of a Tata Harrier car in 2019 and he was told that if he sold his old car, he would be given a bonus discount on the new car by the dealer. 

The man sold his old Tata Indigo Manza car to the dealership and purchased the new car. At the time of sale, he handed over all the necessary documents to the dealership’s manager. On their instructions, the complainant also obtained the no-objection certificate from the Registration and Licensing Authority (RLA), Chandigarh.

The complainant later approached the dealership for transfer of the said car, but the matter wasn’t resolved. In September 2022, however, the complainant received a challan for the old car from the Kashmir Traffic Department.

He again approached the dealership but learnt that the car was sold to another party and he was told to contact the current owner. When he contacted the owner, he was reportedly told that the car had exchanged hands again and the car was in Jammu and Kashmir. 

Faced with this peculiar situation, the man went to the Registration and Licensing Authority and made a request to block the registration certificate. The authority, however, refused to accept the plea and told him to bring the original registration certificate. The complainant had also shot off a legal notice to Berkleys Tata Motors and the other party to whom the dealer has sold the car. 

The man alleged that the parties’ acts amounted to a deficiency in service and an unfair trade practice, and filed the complaint with the consumer body.

As the opposite parties, including the dealership, did not appear before the commission, the matter proceeded against them ex parte (from one party).

‘Unfair trade practice’

The Registration and Licensing Authority, which appeared before the commission, argued that the original owner had himself obtained the no objection certificate (NOC) in favour of the buyer for registration of the vehicle in Jammu and Kashmir.

It stated that the vehicle would continue to remain in the complainant’s name until documents for re-registration are submitted and denied deficiency in service or unfair trade practice while asking the body to dismiss the complaint.

The commission noted that the Berkleys Tata Motors had taken delivery of the car in question from the complainant on August 14, 2019, and undertook responsibility of the same, as is also evident from the delivery receipt produced by the complainant.

The commission directed the Berkleys Tata Motors to immediately get the vehicle in question transferred from the name of the complainant to the name of the subsequent purchaser, at its risk and cost, and to pay Rs 20,000 to the complainant as compensation for the harassment caused as well as litigation expenses.

The commission also directed the Berkleys Tata Motors to comply with the order within 60 days from this order, failing which the amount shall carry 9 per cent interest from the date of the order till realisation. It held that there was no deficiency in service on the part of the registration and licensing authority and the subsequent buyer.

Key takeaways

The ruling establishes the obligation of the dealership to actually deliver the vehicle to the new buyer, and complete the legal transfer formalities when a person has transferred the vehicle’s ownership.

It also highlights the duty of the consumer not to ignore the deficiency in service on the part of the opposite party.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Punjab helpline:0800-22577) or call the National Consumer Helpline on 1915 for assistance.