Ghandhara Automobile serves defamation notice against Master Auto Engineering

M/s. Ghandhara Automobiles served a legal notice of PKR 3,000 million against Master Auto Engineering Pvt. Ltd. through a lawyer for its defamatory publication.  

According to the lawyer, throughout its tenure as the authorized distributor of Chery vehicles in Pakistan, Ghandhara Automobiles diligently and faithfully performed its contractual obligations, including sales, after-sales service, spare parts supply, dealer support, and customer facilitation. 

It is a matter of record that warranty obligations on Chery vehicles are the direct and primary responsibility of Chery Automobile Co., Ltd., the manufacturer of the vehicles. These obligations have at all material times remained intact and enforceable by customers. Notwithstanding this, our Client, at its own initiative and in good faith, has continued to provide after-sales service, entertained warranty claims and support to customers so as to ensure that Chery owners in Pakistan were not inconvenienced. At no stage has there been neglect or lapse on the part of our Client in the discharge of its role as distributor. It must also be clearly placed on record that the distributorship between our Client and Chery Automobile Co., Ltd. was not terminated on account of any fault or breach by our Client. Rather, it was a time-bound arrangement which expired by efflux of time in accordance with its terms. Any statement to the contrary is wholly false, misleading, and malicious.

In the above background, our Client’s attention has been drawn to your recent customer communication titled “We’re here for you,” in which you have published and emphasized the statement: “It is important to note that it is the contractual obligation of the previous distributor to provide service and warranty of the vehicles they have sold. However, Master will take care of these vehicles in good faith.”  By making the said statement, you have sought to shift responsibility and blame upon our Client by incorrectly asserting that it remains contractually obliged to provide warranty support; you have undermined the reputation and standing of our Client by implying that it has failed in its obligations, thereby compelling you to intervene “in good faith”; you have misled the public and customers into believing that the distributorship was prematurely terminated due to non-performance; and you have held out to customers a distorted narrative that casts unwarranted doubt upon the professionalism, credibility, and service commitment of our Client.

Accordingly, through this Legal Notice, as a fellow player in the automobile sector, you are formally called upon to forthwith retract the false and defamatory statement contained in your communication “We’re Here For You”; publish a written clarification addressed to customers and dealers acknowledging the correct factual and contractual position, namely that warranty obligations are those of Chery Automobile Co. Ltd. and not of our Client; issue a written, unqualified apology to our Client in terms approved by us and disseminate the same to the identical audience and platforms on which your defamatory publication was made; and compensate our Client for the reputational and commercial loss already suffered and continuing to be suffered by reason of your defamatory publication, which our Client quantifies conservatively at PKR 3,000,000,000/-, without prejudice to its right to claim higher damages as assessed by competent courts of law.

"When asked about Master Auto Engineering's position on the matter, the spokesperson replied, 'No comments,' but acknowledged that rumors are circulating."