National Commission Allows Appeal by Fast Engineers in AC Installation Disputes (Consumer Case)

The complainant hired Fast Engineers for the installation of an LG air-conditioning system, paying Rs. 18,50,000 for work to be completed in six months. However, the company failed to complete the installation, and the equipment remained unused.

An LG representative revealed that the system’s cost was around Rs. 10,00,000. Despite ordering another AC unit for a different location, the company again failed to install it. After issuing legal notices with no response, the complainant approached the State Commission of Rajasthan, which ruled in favor of the complainant.

The Commission ordered the company to refund Rs. 18,50,000 with 8% interest, Rs. 2,00,000 as compensation, and Rs. 10,000 in litigation costs. The company subsequently appealed to the National Commission. The National Commission focused on whether the complainant qualified as a “consumer,” whether there was a deficiency in service, and the liabilities of the parties.

Citing a Supreme Court ruling, the Commission emphasized that if the dominant purpose of a purchase was personal use, the buyer would be considered a consumer. In this case, the company failed to prove the AC installation was for commercial use. While the complainant claimed the installation was incomplete and presented evidence of unfinished work, the qualifications of the mechanic were questioned.

The Commission also noted that the contract was voluntary and most equipment had been delivered. The company disputed the claim of incomplete work, stating Rs. 3,43,000 was still pending for a completed installation. The Commission found the State Commission’s order for a full refund with interest and damages excessive and unsustainable, leading to the appeal being allowed and the earlier order set aside.

Source: – Live Law
By: – Rajat Ranjan

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