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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V.K. Jain, Presiding Member
Indian Oil Corporation Ltd. —Appellant
versus
Late Om Prakash Seth (since died) , Through his legal heirs —Respondents
First Appeal Nos.664 of 2007 & 759 of 2007
Decided on 17.09.2014
Counsel for the Parties:
For the Appellant in 664/2007 :Mr. R. Sudhinder, Advocate. with & for respondent No.3 in 759/2007 Ms. Ekta Bhasin, Advocate
For the Appellant in 759/2007 :Mr. Puneet Khurana, Advocate & for respondent No.3 in 664/2007
For the Respondents Nos.1&2:Mr. Pardeep Dahiya, Advocate (in both)
For the Respondent No.4( in both):Ms. Manjusha Wadhwa, Advocate.
IMPORTANT POINT
Breach of instructions issued by IOC on part of consumer would not wipe out defect in services provided by Corporation by supplying defective LPG cylinder to consumer.
Headnote:Consumer Protection Act, 1986—Sections 2(1)(d), 17, 19 and 21—LPG—Massive damage to household due to explosion in gas cylinder—Compensation of Rs.2,50,000/- and cost of Rs.25,000/- awarded by State Commission—Not only a person who hires or avails of any service for a consideration but also a beneficiary of such service who himself does not hire or avail service for consideration is also included in definition of consumer—Once it is shown that LPG cylinder supplied to consumer was defective, this would be a clear case of deficiency in providing services to consumer—No technical evidence has been led by IOC to indicate what could be possible cause of an otherwise defect free cylinder all of a sudden becoming defective—LPG cylinder supplied to consumer was not free from defect and its valve was leaking at the time it was supplied—Breach of instructions issued by IOC on part of consumer would have impact on quantum of compensation but would not wipe out defect in services provided by Corporation by supplying defective LPG cylinder to consumer—However, distributor cannot be held responsible for loss to consumer—Lump sum compensation of Rs.1,00,000/- along with 10% interest would suitably compensate complainant for loss caused to his premises. (Paras 6, 9, 10, 11, 12, 13 and 15)
Result: Appeals allowed.
V.K. Jain, Presiding Member—Late Shri Om Prakash Seth, father of complainant No.2, Baldev Seth, obtained an LPG connection from the appellant/opposite party No.1-Indian Oil Corporation Ltd. (hereinafter referred to as IOC) and the cylinders containing LPG were being supplied to him by opposite party No.2-Citizen Gas Enterprises. It appears from a perusal of the record that at the relevant time, the LPG supplied against the connection obtained by Late Shri Om Prakash Seth was being used in the house of his son, complainant No.2- Shri Baldev Seth and Shri Om Prakash Seth himself was not residing in that house. One LPG cylinder was booked with opposite party No.2 by/on behalf of the registered consumer and was duly supplied. The case of the complainants is that the LPG cylinder was supplied on 05-12-1995 whereas the case of the opposite party No.2 is that it was supplied on 01-12-1995. An explosion took place in the house where complainant No.2 was residing with his family, at about 5:15 A.M. on 06-12-1995, and according to the complainants, window panes of their house as well as of the adjoining flats were smashed due to the impact of the explosion. This is also the case of the complainant that as a result of the explosion one wall of the drawing room was blown up and the windows of the flat fell in a park in the neighbourhood. A number of gadgets such as VCR, microwave oven, stereo, AC and fridge as well as furniture items and crockery items are alleged to have been destroyed due to the said explosion. The matter was reported to the police which, after inspection of the said flat, seized the LPG cylinder as well as the regulator, etc., and sent the same to CFSL for obtaining its opinion in the matter. It was opined by the CFSL that the damage to the premises of the complainants had occurred due to explosion of LPG/air mixture. Another report dated 03-01-1996 was earlier submitted by CFSL, stating therein that there was leakage from the valve/nozzle of the LGP cylinder. The complainants i.e. the registered consumer of IOC, Shri Om Prakash Seth and his son Shri Baldev Seth who was consuming the gas supplied against the connection provided to his father, then filed a complaint against IOC as well as its distributor Citizen Gas Enterprises seeking a sum of Rs.5,15,000/- towards loss to the household goods and loss of Rs.5,00,000/- towards mental shock and agony.
2. The complaint was resisted by the IOC as well as its distributor primarily on the grounds that the gas was being unauthorizedly used by Shri Baldev Seth who was not a registered consumer of IOC; the LPG cylinder was supplied on 01-12-1995 and no leakage was reported at any time prior to 06-12-1995; the complainant did not take necessary precautions to avert the accident since the cylinder was not switched off after its use on 05-12-1995 and the compensation demanded by the complainant was highly inflated. It was also claimed by opposite party No.1-IOC that in view of the agreement between it and its distributor, the sole responsibility in such cases was that of the distributor as well as the complainant and IOC was not responsible in any manner.
3. The distributor of IOC, M/s. Citizen Gas Enterprises, inter alia pleaded that there was no deficiency on its part in providing services to the user of the LPG.
4. The State Commission vide impugned order dated 30-08-2007 directed as under:
“(a) OP No.1 shall pay Rs.2.5 lacs as damages for the aforesaid household goods as well as for the mental agony, harassment.
(b) OP No.2 shall pay Rs.25,000/- for its negligence.
20. Since both the Ops had insured themselves with the OP No.3 the first charge of payment of aforesaid compensation will be on the OP No.3- insurance company in terms of the policy.
21. Payment shall be made within one month from the date of receipt of this order.”
5. Being aggrieved from the order passed by the State Commission, IOC as well as its distributor are before this Commission by way of two s
