IMPORTANT POINT
Air Conditioning system installed in computer centre of complainant college who became defective after one year and was not repaired it amounted to deficiency in service wit OP liable to compensate for loss.

R.C. Jain, Presiding Member—Aggrieved by the order dated 30.6.2005 passed by the Karnataka State Consumer Disputes Redressal Commission Bangalore (in short, ‘the State Commission’) in complaint No.76 of 1998 M/s Rinac India Ltd. & another (original opposite parties in the complaint), have filed the present appeal. By the impugned order, the State Commission has allowed the complaint filed by the complainant Karnataka Regional Engineering College Society (in short ‘the KRECS’) by giving the following directions to the opposite parties appellants:

“(a) The complaint is allowed opposite parties are directed to replace the machineries/articles referred to in Annexure-A of the complaint and make the compressor and other accessories in workable condition without any further defects within three months.

(b) In the alternative, if the OPs failed to replace the machineries/articles referred to in Annexure-A of the complaint within three months as directed above, the OPs are directed to pay Rs.17,17,500 to the complainant with interest at 12% p.a. from the date of the complaint till realization subject to handing over possession of the machineries/articles referred to above to the OPs.

(c) The opposite parties are directed to pay Rs.50,000 to the complainants as punitive damages with interest at 12% p.a. from the date of this order till realization.

(d) The opposite parties are also directed to pay a sum of Rs.5,000 to the complainants as the cost of the proceedings.”

2. The complaint before the State Commission was filed with the averments and allegations that complainant had entered into an agreement dated 2.11.93 with M/s Clean Air, which later merged into the appellant M/s Rinac Ltd. for installing an air conditioning system (air cooled split type) in the computer center building of the complainant KRECS at a ~ total cost of Rs.23,05,596. The agreement provided that the air cooled condensing units would be located on the terrace and each floor will have air handling unit of adequate capacity with multi circuit cooling coil. The system was to consist of six compressors (two compressors for each of the three floors) together with required condensers and necessary controls and protection and ducting. As per the agreed terms, the opposite party was to supply, erect and commission the air conditioning system as per the specifications contained in the agreement within three months of the agreement and was to provide a local person for minor repairs during the warranty period of one year. It was alleged that though the site for installing the air conditioning system was made available to the opposite party on 8.12.93, still the system could be installed only in December, 1994. Further, the case of the complainant was that in October/November 1995, air conditioning system on the ground floor had partially failed as one compressor went out of order, AC duct solenoids were not functioning and switches required replacement and so the complainant, vide letters dated 31.10.95 and 8.11.95, requested the opposite party to rectify the malfunctioning of the compressor and rectify the defects pointed out but the opposite party failed to rectify the defects in the system. Again a request was made to the opposite party to commission and tune the air conditioning system on the first and second floors and to replace one defective compressor. Despite assurance, the compressor was not replaced. Thereafter, even the second compressor installed at the first floor also developed problems in January 1996. Representatives of opposite party who visited the complainant’s premises in order to rectify the defects could not do so and they took away the two compressors and one AHU motor on 2.3.1996 for repair or replacement by assuring the complainant that they will return within 2-3 days. Despite reminders, the compressors were not replaced and after a long delay it was informed that one compressor had been repaired and same shall be sent back while the other c