Consumer law- issues with car dealer for new car

This query is : Resolved 

16 April 2018

Greetings to all Experts !!

I have made the whole payment ( Down payment + Loan ) for a new car but still haven't got the delivery of the car because
Car dealer was still not able to provide the TEMP/Permanent No. from RTO. I have already paid the complete RTO charges
to the Car dealer and have the Invoice for the same. Car dealer earlier tried to give the delivery by using the TRADE CERTIFICATE no.
instead of the Number from RTO. I was uncomfortable to take the CAR on ROAD just by displaying the TRADE CERTIFICATE No. of the Dealer.
Car is insured but without the RC number ( since its a new car ) and I have a INSURANCE COVER note only.
Every now and then I had been making calls to the Car dealer but they still giving same EXCUSES of delay from the RTO . I dont even know, have they applied in the RTO because we get the SMS from the RTO when they receive the application from the dealer for a new car in DELHI. My questions to experts are --
1> Since I have made the complete payment would it be SAFE to take the delivery on TRADE CERTIFICATE no. ?
2> Would I be able to get the damages from the INSURANCE company in case my car meets with the accident while driving it on a TRADE CERTIFICATE No. ?
3> What shall be the next course of action / or where can I compliant - that payment had already been done but Dealer still delaying it with the RTO Excuses. ?

Ms.Usha Kapoor (Expert)
16 April 2018

Although you've paid the entire purchase money and finished with RTO charges from your end car dealer is not allotting the requisite number you can file your case in consumer court seeking all the above reliefs and allotment of car no return of purchase money and interest up to date of payment + damages.If your car meets with accident the insurance company will reimburse you with cost of the car or for expenses of repairs. Also you can demand a new car.

Advocate Bhartesh goyal (Expert)
16 April 2018

Inspite of having received entire cost of car and other charges by dealer and not delivering you car is clear deficiency of services of dealer.Approach District Consumer Forum and demand/claim of car or alternatively cost of car and other charges received by dealer from you along with compensation towards mental and physical agony.

The point by point reply to your query is as under:

1 >>> You can take delivery based on trade invoice or certificate. You can keep the vehicle in to your custody, but cannot ply the vehicle in public place, as you will have to bear in mind one main condition of the MV Act that "No person can drive a motor vehicle in a public place unless the vehicle has been registered by a registering authority of the government of India. The vehicle must clearly bear the mark or plates of registration and the certification of registration or RC book must be carried at all times when driving the vehicle."

2 >>> You won't be able to claim even a single penny from the insurance company without getting the vehicle registered in your personal name.

3 >>> Instead of hitting in the dark, better enquire from the RTO office, why the registration is being delayed or denied and only after that think about proceeding further, even if you want to go legal. If the fault lies on the RTO all of your efforts to sue the dealer may go in vain. In that case, your claim against dealer can flop badly.

Guest (Expert)
16 April 2018

In view of the fact revealed through the above advice of Mr. Dhingra, the following condition of the MV Act very clearly proves that the advice of Ms. Usha Kapoor, a fake expert, is totally wrong and misleading, when she says that the insurance company will reimburse you with the cost of the car or expenses of repairs.

"No person can drive a motor vehicle in a public place unless the vehicle has been registered by a registering authority of the government of India. The vehicle must clearly bear the mark or plates of registration and the certification of registration or RC book must be carried at all times when driving the vehicle."

P. Venu (Expert)
16 April 2018

The facts posted are less than convincing.

Kumar Doab (Expert)
16 April 2018

IT is clear from your post that you are looking at scope of deficiency by dealer, RTO..and to agitate in consumer forum..

By now hopefully you are a qualified lawyer and shall appreciate that Mr. Bhartesh Goyal has provided you with the recourse if you want to agitate.
If dealer has collected the forms and FEE then IT has to submit to RTO in time and also should provide you with details of submission/proof, without hesitation.
Hope you have asked for these in clear words and have call details/recordings.
The dealer must have not delayed and/or given false information so as to conceal..
If you wish you can even write under proper acknowledgment and ask.
Or you can visit and ask the dealing person.

Kumar Doab (Expert)
16 April 2018

In case you already know that dealer has delayed then you may proceed against dealer.
The dealer might be getting some commission from FEE.
The RTO should also act in time.
The RTO while authorizing must have issued SoP to dealer(s).
The consumer forum can ask for all relevant details/docs and fix responsibility
The dealer as agent of insurer has issued the cover note and insurer shall supply the policy as preferred by you say; soft copy by email and/or hard copy by Redg. Post/courier.
If you place on record your preferred mode for policy to insurer.

If you wish to be proficient in consumer matters then you may read the posts of Mr. Bhartesh goyal..

Ms.Usha Kapoor (Expert)
17 April 2018

You may not know,Every vehicle gets insured for accidents also liability of insurance company of 3rd parties(Victim of accident)If the owner doesn't pay the compensation on account of accident resulted in,death or disability Insurance company will've to pay the entire expenditure such as medical bills, his rehabilitation etc. It doesn't matter if the owner has paid the insurance premia or accident insurance premia only once or twice-The insurance company is liable to pay the victim or his family compensation on acc0unt of the accident..

Ms.Usha Kapoor (Expert)
17 April 2018

There is a rider to my answer. If the car meets with Accident insurance company will bear all the costs if its insured. Read the below post.Its Hypothetical only but accidents are One of the leading cause of death or disability in India.. after Heart attacks.cancer etc

Guest (Expert)
17 April 2018

@ Ms. usha Kapoor,
Ask the querist to put the vehicle on road and face the police at first on plying a vehicle without registration. Then ask him to make accident also to face criminal trial and get behind bars. Thereafter you will get opportunity to get three court cases at a time to fight, first for running vehicle without registration, 2nd making accident and the 3rd for claiming damages and cost of life from the insurance company. Only then you will understand, what the MV Act says and what you said. otherwise, in the absence of any commonsense, your self acclaimed sharp brain can't perceive the legal provisions.

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