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Dr. D.J. De Souza v. Managing Director, CPC Diagnostics Pvt. Ltd.

Civil Appeal · 2019 INSC 445Decided 1 Apr 2019
Civil Appeal Nos. 3351-3352 of 2019
Dr. Justice D.Y. Chandrachud · Justice Hemant Gupta

Background

Dr. De Souza ordered a "TurboChem 100" biochemistry analyser machine for his clinic/lab, paying 50% of the price upfront. The seller's pre-installation conditions required an efficiently air-conditioned room, a 1KVA Online UPS, and a broadband connection. After delivery, a dispute arose because the seller insisted Dr. De Souza install a 1KVA Online UPS (he had a different, lower-capacity UPS) and because the machine lacked an "on-board laundry facility" he believed should have been included. He sought a refund with interest and damages, but lost before the District Consumer Forum, the Goa State Consumer Commission, and the National Consumer Disputes Redressal Commission (NCDRC), each of which rejected his complaint, before he appealed to the Supreme Court.

Decision Breakdown

The Supreme Court dismissed the appeal, agreeing with all three consumer fora below. It held that the brochure supplied to Dr. De Souza never promised an "on-board laundry facility," so he could not insist on one that was never committed. It also held that the pre-installation requirement of a 1KVA Online UPS was a clearly stipulated precondition for installation, and an email from the US manufacturer suggesting his existing UPS would suffice could not override the seller's own pre-installation conditions (which also accounted for India's variable electricity supply). Finding no deficiency in service or unfair trade practice established at any stage, the Court upheld the concurrent findings of all the lower fora.

Lesson Learnt

Before signing a purchase or service agreement, read and satisfy all written pre-conditions (like equipment or infrastructure requirements) carefully: a buyer cannot later rely on an unrelated third party's opinion (like a manufacturer's email) to override contractual conditions that were clearly specified by the seller in writing, nor can a buyer claim a feature was promised when the product brochure never actually committed to it.

Official source (sci.gov.in)View Judgment (PDF)

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