Sale of defective car due to dealer’s fault will not make car manufacturer liable unless knowledge can be proved: Supreme Court

A decision fastening liability upon the manufacturer would be untenable when its relationship with the dealer was on principal-to-principal basis, the Court held.
Tata Motors, Supreme Court
Tata Motors, Supreme Court

When the relationship between a car manufacturer and a dealer is on a principal-to-principal basis, the former cannot be saddled with liability arising from the actions of the latter that led to sale of a defective car, unless its knowledge about such defects can be proved, the Supreme Court has ruled (Tata Motors Limited v. Antonio Paulo Vaz).

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