CJI DY Chandrachud bench imposed 50 lakh fine on BMW, says give new car as compensation to customer Supreme court | CJI Chandrachud was hearing the case against BMW, changed the decision of the High Court, said


Chief Justice of India D.Y. Chandrachud: The Supreme Court has directed luxury carmaker BMW India Pvt Ltd to pay a compensation of Rs 50 lakh to a customer for supplying a car with a manufacturing defect in 2009. A bench of Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra set aside the order of the Telangana High Court which had quashed the prosecution against the leading carmaker and asked the company to give a new vehicle to the complainant in place of the defective vehicle.

Supreme Court ordered to pay compensation

In its order dated July 10, the bench said, “Considering the facts and circumstances of this case, we are of the view that the manufacturer BMW India Private Limited should be directed to pay an amount of Rs 50 lakh in full and final settlement of all the disputed claims. The manufacturer has to pay this amount to the complainant on or before August 10, 2024.”

The bench noted that in June-July 2012 itself, the car manufacturer had offered to replace the old vehicle with a new one in compliance with the high court order. “However, the complainant did not agree to this. If the complainant had used the vehicle, its value would have depreciated by date,” the bench said.

The car was breaking down repeatedly

The bench said that during the hearing it was told that the complainant had returned the old vehicle to the car dealer. The complainant had bought a BMW 7 Series car on 25 September 2009, which started malfunctioning within a few days.

On 29 September 2009, the vehicle developed a serious problem and the complainant took it to the workshop. After this, the vehicle developed a similar problem on 13 November 2009. Finally, the complainant filed an FIR on 16 November 2009 under Sections 418 and 420 of the Indian Penal Code, 1860.

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