The two-member commission bench-RK Anand and RL Sudhir while pronouncing the oral order said, "PAL Peugeot is directed to refund the booking amount of Rs 25,000 alongwith 18 per cent interest per annum from the date of deposit till the date of refund".

The customer, Namit Mutreja had booked a PAL Peugeot 309 in October 1995 and paid booking amount of Rs 25,000 through the dealer Auto Kashyap India Pvt Ltd, the commission said. The commission said that the customer later cancelled the booking of the car in January 1997 and informed the company in writing of his decision. Despite cancellation of the booking, Mutreja was not refunded his booking amount within 60 days of the cancellation as stipulated in the agreement.

MRTPC in its order said, "even though the booking of the car, was cancelled by him vide his letter dated 30-1-1997, the refund of the same was not given to him even though in accordance with condition no 15 of the terms and conditions of registration PAL Peugeot was required to refund the booking amount with interest within 60 days of the cancellation". The commission further said that it had issued a notice to the company, "but neither a reply was filed on its behalf nor an appearance made through an advocate or authorised representative". It also further directed the comapny to file an affidavit of compliance within six weeks from the date of the order.