Customer paid Rs 13,000 for car ownership transfer, but dealer kept it in its workshop for years, court orders Rs 2.57 lakh with 10% interest

A West Bengal consumer commission has upheld an order directing a car dealer to pay Rs 2.57 lakh to a customer after it failed to transfer ownership of a second-hand car and continued to keep the vehicle at its workshop for years following an accident.

According to a report by TOI, the West Bengal State Consumer Disputes Redressal Commission also upheld 10 per cent annual interest on the amount, along with Rs 5,000 compensation and Rs 5,000 towards legal expenses. The order was passed on September 2, 2026.

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Why did the customer complain against the car dealer?

According to the commission's order, the customer booked a pre-owned Maruti SX4 under the dealer's True Value scheme on March 10, 2016, for Rs 3.69 lakh.

He paid Rs 5,000 as a booking advance and handed over his father's Maruti Omni, valued at Rs 1.30 lakh, as part of the exchange. He subsequently paid the remaining Rs 2.39 lakh to the dealer.

The customer also paid Rs 13,000 in administrative and other charges for transferring the vehicle's ownership and registration. He was allegedly assured that the ownership transfer would be completed within six months. The Maruti SX4 was delivered to him on April 5, 2016.

Car meets with an accident days after delivery

Just six days after taking delivery, the car met with an accident on April 11, 2016. It was subsequently taken to the dealer's workshop for repairs.

The dealer prepared a repair estimate of Rs 53,780 but the vehicle was not repaired. Instead, it remained at the workshop.

The customer later sent a legal notice to the dealer. His problems continued when the Regional Transport Office (RTO) asked him to produce the vehicle for inspection as part of the ownership-transfer process.

However, the car was still sitting inside the dealer's workshop. The customer eventually approached the consumer commission seeking relief.

Dealer challenges consumer complaint

The dealer disputed the customer's case on several grounds. It argued that he did not qualify as a consumer, that the complaint had been filed after the permitted period and that ONGC, the earlier registered owner, and the insurance company should also have been included as parties.

The dealer also claimed that the repairs could not be carried out because the customer had failed to pay the repair charges.

The customer, however, maintained that he had handed over all documents available with him after the accident. He also relied on the delivery note, which stated that the dealer had taken responsibility for assisting with the ownership transfer.

Consumer commission finds dealer responsible for ownership transfer

The commission, comprising members Rajes Guha Ray and Santanu Saha, found that the dealer had specifically collected Rs 13,000 for completing the ownership and name-transfer process.

The bench noted that the delivery note placed responsibility for the transfer on the dealer and that the vehicle had been delivered with an assurance that the process would be completed within six months.

“It is an undisputed fact that the appellant collected Rs.13,000/- specifically to effect the change of ownership and name transfer,” the commission said.

It further noted that the dealer did not submit the required documents to the RTO until October 27, 2016.

Commission rejects dealer's RTO inspection argument

The dealer argued that the ownership transfer was delayed because the customer failed to produce the car for an RTO inspection scheduled for November 8, 2016.

The commission rejected the argument, pointing out that the vehicle had already been in the dealer's physical custody since the accident.

“The car had been lying inside the Appellant's workshop since the accident on April 11, 2016, and hence, the Appellant held physical custody of the vehicle,” the commission observed.

It described the expectation that the customer should produce a vehicle kept inside the dealer's own workshop as “absurd”.

Dealer cannot keep customer's damaged car indefinitely

On the issue of repairs, the commission acknowledged that the dealer could not necessarily be compelled to undertake extensive repairs without receiving payment.

However, it said this did not give the dealer the right to retain the customer's vehicle indefinitely.

“Even if repairs were stalled due to financial and documentation disputes, the Appellant had no legal right to hold the consumer's vehicle in perpetuity,” the commission said.

The bench noted that the vehicle had been left to deteriorate for years, with the documentation dispute being used as a justification for retaining it.

Car dealer ordered to pay Rs 2.57 lakh

The state consumer commission dismissed the dealer's appeal and upheld the district commission's order.

The dealer has been directed to pay Rs 2.57 lakh with 10 per cent annual interest, along with Rs 5,000 as compensation and Rs 5,000 towards legal expenses. The entire amount must be paid within 45 days.

Once the payment is made, the dealer can take possession of the damaged Maruti SX4, which remains at its workshop, as salvage.


Inputs from TOI