SUPREME COURT OF INDIA
M.N. Venkatachaliah, CJI. and Mr. S. Mohan, J.
INDIAN OIL CORPORATION—Appellant
versus
CONSUMER PROTECTION COUNCIL, KERALA AND ANR.—Respondents
Civil Appeal No. 7330 of 1953 (Arising out of SLP (C) No. 9440 of 1993) —Decided on 7.12.1993
Held: that the relationship is one of principal to principal basis. The reliance by the authorities below that the circumstances, documents and conduct of parties proved the relationship as of principal and agent is difficult to understand. This is a case in which the 2nd respondent Karthika Gas Agency has given an unauthorised connection. If it was a legal connection nothing would have been easier than to produce the subscription voucher. Such a voucher as rightly pointed out by the learned counsel for the appellant, is important and will bind the appellant Corporation. The authorities below have not given due importance lo the subscription voucher. (Para 9)
Further held: The possession of an L.P.G. gas cylinder by Dr. Kamalasanan in this case has not been proved to be authorised. Therefore, on the strength of obtaining possession by means of an unauthorised connection it is not open to the 1st respondent to foist a contract on the Corporation. (Para 10)
Result: Appeal allowed.
Mr. S. Mohan, J.—Leave granted.
This appeal by special leave arises under the following circumstances :
1. 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 the 1st respondent. He had taken L.P.G. Connection through M/s. Karthika Gas Agency who is the authorised distributor of the appellant. The said Karthika GasAgency is the 2nd respondent.
2. The 2nd respondent committed several irregularities in giving gas connection and in providing refills of L.P.G. 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 2nd 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 2nd respondent, it did not take any effective steps to put a stop to the irregularities committed by the 2nd respondent.
3. Dr. Kamalasanan, the affected consumer, took up the matter with the appellant-Corporation. It was replied by the Corporation on 23rd of March, 1990 admitting the fact that the irregularities were committed by the 2nd respondent.
4. On 21st January, 1987, Dr. Kamalasanan paid an amount of Rs. 2,036.65 towards S the charges for getting an L.P.G. connection. That included the price of the gas stove and the necessary deposit towards the L.P.G. 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 2nd respondent the appellant suspended the agency. However, the agency came to be revived later on. The 2nd respondent gave Dr. Kamalasanan a new registration for the connection and started the regular supply of gas cylinder. Such registration was accorded on 20th June, 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 2nd respondent is the authorised Agent of the Indian Oil Corporation. On these allegations he preferred a complaint before the Consumer Disputes Redressa! Forum, Kollam claiming regularisation of this gas connection and a compensation of Rs. 500/-.
5. The District Forum accepted the case of the complainant. The appellant-Corporation was directed to regularise the connection given by the 2nd respondent to 1st respondent on 21.1.1987 and issue a subscription voucher and also pay Rs. 100/- as costs.
6. Against the said order, an appeal was filed before the Kerala State Consumer Disputes Redressal Commission in Appeal No. 32 of 1991. By order dated 10th June, 1992 the appellant’s plea that there was no privity of contract between the 1st respondent and the appellant as per Clause 2(g) of the Consumer Protection Act 1986 and further the complaint was having unauthorised or illegal gas connection and that could not be regularised, was not accepted. Accordingly the appeal was dismissed.
7. The revision filed before the National Consumer Disputes Redressal Commission, New Delhi also suffered the same fate since by an order dated 17th of March, 1993 the same was dismissed. Hence the present appeal.
8. 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.
9. A person becomes an L.P.G. customer of the Corporation only on signing a subscription voucher. That voucher contains the terms and conditions
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