Skip to main content

Product Liability in India

Product liability refers to the responsibility of manufacturers, distributors, and sellers for damages caused by defective products. This concept plays a crucial role in consumer protection and is governed by various statutes and common law principles in India.

Consumer Protection Act, 1986​

The Consumer Protection Act, 1986 is the primary legislation governing product liability in India. It defines "defective goods" as goods which fail to conform to any express warranty or guarantee given by the manufacturer or supplier.

Section 2(1)(d) of the Consumer Protection Act, 1986​

This section defines "defective goods" as goods which fail to conform to any express warranty or guarantee given by the manufacturer or supplier.

Indian Penal Code (IPC)​

While not specifically dealing with product liability, certain sections of the IPC may be relevant in cases involving negligence or fraud related to product safety.

Section 304-A of the IPC​

This section deals with causing death by negligence. In product liability cases, it may be applied when a manufacturer's negligence leads to fatal consequences.

Case Studies​

Larsen & Toubro Ltd. vs. State of Maharashtra [1993]​

In this landmark case, the Supreme Court of India established the principle of strict liability in product liability cases. The court held that manufacturers must take all reasonable care to prevent defects in their products.

Hindustan Steel Ltd. vs. Damodar Valley Corporation [1970]​

This case dealt with the liability of a manufacturer for damage caused by a defective product. The court emphasized the importance of foreseeability in determining liability.

Union Carbide Gas Leak Disaster Case [1984]​

This infamous case involved a gas leak at a pesticide plant owned by Union Carbide. The court held the company liable for the disaster, establishing the principle of vicarious liability in product liability cases.

Key Principles​

  1. Strict Liability: Manufacturers are strictly liable for damages caused by their products, regardless of fault.

  2. Causation: There must be a direct causal link between the defect and the injury suffered by the consumer.

  3. Foreseeability: Courts consider whether the risk associated with the product was foreseeable to the manufacturer.

  4. Res Ipsa Loquitur: If a product causes harm through its own inherent nature, it may be inferred that there was a defect.

  5. Imputed Negligence: A manufacturer's failure to exercise due care may lead to imputed negligence, even if no actual negligence occurred.

Conclusion​

Product liability law in India continues to evolve, balancing the interests of manufacturers, consumers, and society as a whole. As technology advances and global trade increases, understanding these principles becomes increasingly important for both businesses and consumers alike.

For further reading and research, please refer to the following resources:

  • Consumer Protection Act, 1986
  • Indian Penal Code
  • Supreme Court judgments on product liability cases