Judgment

MOHAN, J.- Leave granted.

2. This appeal by special leave arises under the following circumstances. The first respondent is a voluntary Consumer Organisation in Kerala, registered under the Scientific, Literary and Charitable Societies Registration Act. Dr P. Kamalasanan, Ram Nivas (Gayathri), Sasthamcotta is a member and Secretary of Respondent 1. He had taken LPG connection through M/s Karthika Gas Agency who is the authorised distributor of the appellant. The said Karthika Gas Agency is the second respondent.

3. The second respondent committed several irregularities in giving gas connection and in providing refills of LPG cylinders to him. The Gas Agency had given more connections than authorised by the appellant, the Indian Oil Corporation. That amounted to deficiency in their service. The second respondent is the authorised agent of Indian Oil Corporation. However, the appellant-Corporation did not take adequate care to ensure that the agency would not cheat the consumers. Notwithstanding the fact that the appellant was aware of the misconduct of the second respondent, it did not take any effective steps to put a stop to the irregularities committed by the second respondent.

4. Dr Kamalasanan, the affected consumer, took up the matter with the appellant-Corporation. It was replied by the Corporation on March 23, 1990 admitting the fact that the irregularities were committed by the second respondent.

5. On January 21, 1987 Dr Kamalasanan paid an amount of Rs 2036.65 towards the charges for getting an LPG connection. That included the price of the gas stove and the necessary deposit towards the LPG connection. On the said date a consumer number was also accorded for which a sum of Rs 61.65 was paid. Having regard to the irregularities committed by the second respondent the appellant suspended the agency. However, the agency came to be revived later on. The second respondent gave Dr Kamalasanan a new registration for the connection and started the regular supply of gas cylinder. Such registration was accorded on June 20, 1988. The registration number was 1624. Cylinder was supplied regularly till May 1990. When the consumer requested for regularisation of his gas connection the appellant refused the same. According to the consumer this would amount to a deficiency of service by the Indian Oil Corporation, the appellant since the second respondent is the authorised agent of the Indian Oil Corporation. On these allegations he preferred a complaint before the Consumer Disputes Redressal Forum, Kollam claiming regularisation of his gas connection and a compensation of Rs 500.

6. The District Forum accepted the case of the complainant. The appellant-Corporation was directed to regularise the connection given by the second respondent to first respondent on January 21, 1987 and issue a subscription voucher and also pay Rs 100 as cost.

7. Against the said order, an appeal was filed before the Kerala State Consumer Dispute Redressal Commission in Appeal No. 32 of 1991. By order dated June 10, 1992 the appellants plea that there was no privity of contract between the first respondent and the appellant as per clause 2(g) of the Consumer Protection Act, 1986 and further the complainant was having unauthorised or illegal gas connection and that could not be regularised, was not accepted. Accordingly the appeal was dismissed.

8. The revision filed before the National Consumer Disputes Redressal Commission, New Delhi also suffered the same fate since by an order dated March 17, 1993 the same was dismissed. Hence, the present appeal.

9. The contentions on behalf of the appellant are as under:

It is not open to the complainant to seek remedy under clause 2(g) of the Consumer Protection Act, 1986 as there is no privity of contract between the complainant and the appellant-Corporation.

10. A person becomes an LPG customer of the Corporation only on signing a subscription voucher. That voucher contains the terms and conditions governing the loani