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Tata Engineering & Locomotive Co. Ltd. & ... vs Gajanan Y. Mandrekar on 5 May, 1997

The High Court held that the warranty condition relied upon by the appellant did not warrant interpretation that only the defective part was to be replaced and not the car itself. Reference was made to certain observations in the Corpus Juris Secundrum Volume 77 page 1198. It was held that the booklet containing warranty clearly indicates promise of service and replacement with certain conditions. It was observed that the Commission was justified in its conclusion that the appellant had agreed to replace the vehicle and had admitted that there was manufacturing defect in the concerned part. Reliance was also placed on a decision of this Court in Tata Engineering & Locomotive Co. Ltd. v. Gajanan Y. Mandrekar (1997(5) SCC 507). Therefore, the appellant was directed to replace the car or repay the amount received by it as sale price with interest @ 18% p.a. w.e.f. 27.11.1996 with costs awarded by the Commission.
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