Consumer Court Slaps Rs40,000 Costs on Man for Suing Hyundai over Damaged Car Despite Selling It

Bar and Bench 23 June 2025

Consumer Interest

The Consumer court at Bengaluru imposed costs of Rs40,000 on a man for wasting its time by pursuing a complaint seeking compensation or free repair or replacement of his damaged Hyundai car despite having sold the car and claimed an insurance amount [Sri Mohan Hegde v. M/s Hyundai Motors India Limited and ors].

A coram of President (in-charge) Anita Shivakumar and member Suma Anil Kumar of District Consumer Disputes Redressal Commission (DCDRC) at Bengaluru (Urban) found that the complainant had suppressed the fact that he had entered into an agreement to sell his damaged car to one Trigent Corporate in January this year.

The DCDRC observed that the customer should have been told that his rights over the car would cease immediately after such a sale. It added that his lawyer could have advised him on this aspect.

Further, the complainant had also secured Rs3 lakh as compensation from an insurance company. This too was found to have been suppressed in the complaint.

The DCDRC proceeded to dismiss the complaint, observing,

"They (complainant and his lawyer) are well aware that the car in question is not in their possession to replace or to repair the vehicle. Such being the case complainant filed this complaint with mala fide intention and going to waste the precious time of the court. Hence, it is a fit case to dismiss the complaint as not admissible with cost of Rs.40,000/- which shall be remitted to the consumer welfare fund within 30 days from the date of order. Failing which it carries interest at the rate of 10% per annum till realization (sic)."

According to the consumer forum's order, the complainant had bought the Hyundai car for a price of Rs5.22 lakh. He also paid Rs14.88k for an extended warranty.

In October 2024, his car is said to have experienced an unexpected brake failure. Shortly after he halted his car, its bonnet caught fire, which spread rapidly despite switching off the car's engine and applying the handbrake.

The estimated cost for repairs came to about Rs6.7 lakh, the consumer commission was told.

An investigation by an insurer concluded that the incident took place because of a mechanical failure, which the complainant pointed out would be covered by the extended warranty he had purchased.

However, he later agreed to sell the car to Trigent Corporate which offered Rs88,000 to buy the damaged vehicle. The complainant was also, prima facie able to get Rs3 lakhs as compensation from his insurer.

In view of this, since the car was no longer in his legal ownership, the consumer complaint he filed in the matter against Hyundai, its dealer and its road side service agent was dismissed on 27 May, with the consumer commission observing,

"It's general awareness once movable or immovable property sold out, purchaser who purchases the property will have a right on a property not the seller ...Complainant have no right over the car in question. As per the document of agreement and the submission complainant has ceased his rights, immediately after car sold out (sic)."

Courtesy : Bar & Bench

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