Automobile recall and liability: Katzer Motors Private Limited

Abstract

The case discusses the upcoming launch of Katzer Motors Private Limited’s first vehicle in India. The vehicle relies on an internationally developed platform, wherein some defects have been identified. These defects were identified just before the launch, and the management team must now find a solution to the problem. The problem is made acute as in India, there is no legislation or delegated legislation covering the issue of such automobile recall. The management must also grapple with the possible liability arising under tort law, or if the issue is taken up by the superior courts relying upon their inherent powers. This case is meant to make students think about the possible legal and business consequences that may arise out of inherent or manufacturing defects that may be present in a vehicle.