NCDRC (National Consumer Disputes Redressal Commission) orders Toyota to pay Rs. 15 lakh with 9% interest to the aggrieved customers or give a new Innova car; The customer gets justice after over 12 years.
There have been multiple examples in our country where car companies had to compensate customers for delivering defective products. The latest case which has come to light is where Toyota known for its bulletproof reliability has been directed to pay around Rs. 32 lakh to a customer. What is this ordeal all about? Let’s find out.
Toyota to Pay Rs. 32 Lakh In Compensation: The Background
Mr. Sunil Reddy bought the Innova on March 11, 2011 and he opted for the VX Diesel 7-seater variant. On August 16, 2011, he met with an accident, colliding into an auto rickshaw and this was a front head-on collision. The airbags failed to deploy during the accident and Toyota refused the accept the defect in the airbag unit, citing that the impact was not frontal.
Toyota to Pay Rs. 32 Lakh In Compensation: The Long Legal Battle
The legal battle of Sunil Reddy against Toyota Kirloskar Motors and Nandi Toyota Motor World (Toyota Dealership) started with a legal notice which was ignored by the company. Following this, he took the matter to the District Consumer Forum and after several hearings, an order was passed in favour of Mr Reddy on November 27, 2014. The order directed Toyota and the concerned dealership to replace the vehicle with a new one or if the same model is not available, return the amount of around Rs. 15 lakh with 9% p.a. added interest from the date of the accident.
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Toyota to Pay Rs. 32 Lakh In Compensation: Toyota Challenges the Order
Toyota challenged the order passed by the District Consumer Forum and filed an appeal in the State Consumer Commission where it was rejected and the former’s order was upheld.
Following this, an appeal was again filed in NCDRC (National Consumer Disputes Redressal Commission) and it passed a judgment on February 16, 2024 in favour of Mr. Sunil Reddy.
The order states, “We find no reason to interfere with the well-reasoned orders of the District Forum and State Commission. Hence, the order of the State Commission is upheld. Accordingly, the revised petition is dismissed. As the District Forum has held both the OP-1/Petitioner (Toyota Kirloskar) and OP-2 (Nandi Toyota) liable, they shall implement the order of the District Forum within 30 days from today. They are liable jointly and severely.”
In the hearings at NCDRC, Toyota argued that it was a side impact and that the airbag system was in compliance with the ARAI standards. However, the FIR filed by the auto-rickshaw driver testified of a side impact.
So, Toyota is now directed to pay an amount of around Rs. 32 lakh to Mr. Sunil Reddy which amounts to the base Rs. 15 lakh along with 9% p.a. interest.
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