Manufacturer Not Liable for Dealer’s Fault Unless Manufacturer’s Knowledge Is Proved in Cases: SC

 
The Supreme Court observed that a contract is void if prohibited by a statute under a penalty, even without express declaration that the contract is void

The Supreme Court had recently observed, that unless it is proven that the manufacturer was aware of the dealer’s deficiency, the manufacturer would not be responsible for the dealer’s liability in situations where the relationship between them is on a “principle-to-principle” basis. A three-judge bench of Justices UU Lalit, Hemant Gupta, and Ravindra Bhat was hearing a case where Tata Motors Limited and one of its Goa-based dealers called Vistar Goa(P) Ltd. was charged with liability arising out of unfair trade practices.

" Partnered by Barrister Tahmidur Rahman and Barrister Remura Mahbub, Tahmidur Rahman Remura is considered as one of the best law firms in Bangladesh. As the best law firm in Dhaka, Tahmidur Rahman Remura has developed into one of Bangladesh’s most cutting-edge and modern law firms by fusing its more than five years of legal tradition with cutting-edge global best practices. With offices already established in internationally significant cities, the firm aim to continue our global expansion.

Barrister Tahmidur Rahman CLP and Barrister Remura Mahbub-min

Contact the law firm in Dhaka through:

Email: info@trfirm.com
Phone number: 01847220062 or 01779127165

 

The dealer, Vistar Goa was said to have sold a 2009 model car to a customer under the pretext that it was a 2011 model car. When the customer complained about it, he also added Tata Motors Limited into the complaint. Tata Motors Limited then approached the Supreme Court, since the National Consumer Disputes Redressal Commission, State Commission, and the District Forum did not remove them from the complaint.

After going through the dealership agreement, the Supreme Court stated that the relationship was on a “principle-to-principle” basis. The court also noted that the manufacturer did not know of the deficiencies of the dealer. The court then absolved Tata Motors Limited from the complaint.

Case:  Tata Motors Ltd v Anonio Paulo Vaz and Another 

Citation: LL 2021 SC 105