Supreme Court Directs BMW To Pay Rs 50 Lakhs Compensation To Customer For Defective Car.
The Supreme Court resolved a 15-year-old cheating case against BMW India Pvt. Ltd., involving a defective car supplied to GVR Infra Projects.
The Supreme Court recently resolved a 15-year-old cheating case involving BMW India Pvt. Ltd. and its management, originally brought by GVR Infra Projects due to the supply of a defective car in 2009.
Concluding the lengthy legal battle, a bench comprising CJI DY Chandrachud and Justices JB Pardiwala and Manoj Misra ordered BMW to pay Rs. 50 lakhs to GVR Infra Projects as full and final settlement. GVR Infra Projects had filed a criminal case against BMW India for cheating (under Sections 418 & 420 of the Indian Penal Code) over the defective car. In 2012, the Andhra Pradesh High Court quashed the criminal proceedings and directed BMW to provide a new car to the complainant.
BMW offered to replace the defective car, but the complainant insisted on a refund with interest and challenged the High Court's order in the Supreme Court. The State of Andhra Pradesh also appealed against the High Court's decision. Before the Supreme Court, BMW's counsel stated that the company was willing to comply with the High Court's direction and had communicated with the complainant about returning the old car.
The Supreme Court criticized the High Court's directive to replace the car, stating it should have focused solely on quashing the criminal case. However, since BMW did not challenge the High Court's order and expressed willingness to replace the car, the Supreme Court decided that continuing the prosecution nearly fifteen years after the dispute arose would not serve justice. Thus, it invoked Article 142 of the Constitution to order compensation.
The Court noted that had the complainant accepted the replacement offer in 2012, the vehicle would have depreciated in value by now.
"Considering the facts and circumstances, we direct BMW India Private Limited to pay a consolidated amount of Rs. 50 lakhs in full and final settlement of all claims in dispute. The manufacturer must pay this amount to the complainant by electronic transfer of funds on or before 10 August 2024," the Court ordered.
The High Court's quashing order will remain in effect, provided BMW complies with this condition.
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