Chhattisgarh State Commission dismisses IOC and SBI General appeals, upholds ₹8 lakh compensation in fatal LPG cylinder accident case.

2026 LN (CGSCDRC) 20

March 03, 2026 : The Chhattisgarh State Consumer Disputes Redressal Commission in Raipur has dismissed two appeals filed by Indian Oil Corporation Ltd. and SBI General Insurance Co. Ltd., upholding a district commission order that awarded compensation to a consumer following a fatal LPG cylinder accident in Bhilai.

The case arose after Priya Jha filed a consumer complaint regarding the death of her father, Ashok Kumar Jha, who died following a fire caused by an LPG cylinder incident on 31 January 2024. The LPG connection was registered in his name, and the cylinder had been supplied through an Indane gas distributor. Priya Jha alleged that the accident occurred due to defective LPG equipment supplied along with the cylinder, including the regulator, valve, and safety pipe, and that the service providers failed to properly investigate the incident through an independent inspection or forensic examination.

According to the complaint, the incident caused severe burn injuries to Ashok Kumar Jha, who later succumbed to them on 5 February 2024 while undergoing treatment at a hospital in Bhilai. Priya Jha argued that the negligence of the gas distributor, Indian Oil Corporation, and the insurer resulted in the fatal accident and sought compensation for the loss.

The District Consumer Disputes Redressal Commission in Durg examined the evidence and partially allowed the complaint. In its order dated 6 May 2025, the district commission directed the opposite parties to jointly or separately pay ₹8 lakh as compensation within 30 days. The order also provided for 6 percent annual interest in case of delay in payment, along with ₹1 lakh for mental agony and ₹5,000 towards litigation costs.

Challenging this decision, Indian Oil Corporation Ltd. filed Appeal No. SC/22/FA/332/2025 and SBI General Insurance Co. Ltd. filed Appeal No. SC/22/FA/432/2025 before the Chhattisgarh State Commission. Both appellants argued that the accident was not attributable to any deficiency in service on their part.

The gas company contended that the cylinder had been supplied in proper condition and had passed safety inspections. It also claimed that the accident occurred due to the use of an old and damaged safety hose and burner, allegedly not replaced by the consumer for several years despite safety guidelines requiring periodic replacement.

SBI General Insurance Company also argued that the insurance policy did not cover the claim because the accident allegedly occurred at an address different from the registered premises mentioned in the policy, which it claimed was a violation of policy terms.

However, after examining the record and submissions of all parties, the State Commission found no reason to interfere with the district commission’s findings. The commission noted that the consumer had lodged a complaint regarding leakage before the cylinder was delivered and that the distributor failed to properly address the complaint or ensure adequate inspection at the time of delivery.

The commission also observed that the addresses mentioned in the complaint and records were within the same locality and that the insurance claim had been rejected solely on the technical ground of the accident occurring at an allegedly “unregistered premises,” which was not justified in the circumstances of the case.

In its order pronounced on 3 March 2026, the bench comprising Justice Gautam Chourdiya (President) and Pramod Kumar Verma (Member) held that the district commission had correctly appreciated the evidence and passed a legally sustainable order. Consequently, both appeals were dismissed and the compensation awarded by the district commission was affirmed. The State Commission also directed that each party bear its own costs in the appeals.

Case Reference : Appeal Nos. SC/22/FA/332/2025 & SC/22/FA/432/2025 – Indian Oil Corporation Ltd. vs. Priya Jha & Ors. and M/s SBI General Insurance Co. Ltd. vs. Priya Jha & Ors.