Hyundai Motor India Limited Vs Shailendra Bhatnagar (Supreme Court of India)
Facts- The appellant are manufacturers of vehicles and the present appeal arises out of a complaint made by the respondent concerning defect in a vehicle, particularly in relation to its safety features originating from the appellant, of the model Creta 1.6 VTVT SX+.
The vehicle came with two front airbags. Purchase of the vehicle was made on 21st August 2015. It met with an accident on the Delhi-Panipat highway on 16th November 2017 resulting in substantial damage to its RH front pillar, RH front roof, side body panels, front RH door panels and LH front wheel suspension. The initials RH and LH appears to be used as short forms of Right Hand and Left Hand sides of the vehicle. At that point of time, the complainant, his mother and daughter were in the vehicle. The airbags of the vehicle did not deploy at the time of collision. The complainant suffered head, chest as also dental injuries. He attributes such injuries to nondeployment of airbags at the time of accident.
Conclusion- The damages awarded against the appellant may have gone beyond the actual loss suffered by the respondent and may not represent the actual loss suffered by him in monetary terms. But the provision of Section 14 of the 1986 Act permits awarding punitive damages. Such damages, in our view, can be awarded in the event the defect is found to have the potential to cause serious injury or major loss to the consumer, particularly in respect of safety features of a vehicle. For instance, defective safety feature in a vehicle has to be distinguished from a dysfunctional “courtesy light”. The manufacturer should be under strict and absolute liability in respect of the latter. Compensation in the form of punitive damages ought to have a deterrent effect.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Leave granted.
2. The appellant are manufacturers of vehicles and the present appeal arises out of a complaint made by the respondent concerning defect in a vehicle, particularly in relation to its safety features originating from the appellant, of the model Creta 1.6 VTVT SX+. The vehicle came with two front airbags. Purchase of the vehicle was made on 21st August 2015. It met with an accident on the DelhiPanipat highway on 16th November 2017 resulting in substantial damage to its RH front pillar, RH front roof, side body panels, front RH door panels and LH front wheel suspension. The initials RH and LH appears to be used as short forms of Right Hand and Left Hand sides of the vehicle. At that point of time, the complainant (being the respondent herein), his mother and daughter were in the vehicle. The airbags of the vehicle did not deploy at the time of collision. The complainant suffered head, chest as also dental injuries. He attributes such injuries to nondeployment of airbags at the time of accident. The appellant themselves obtained an investigation report which has been referred to as SRS report. The remarks and conclusion of the said SRS Investigation Report, as it appears from pages 53 and 54 of the paperbook were:
“Remarks:
