I'll answer you in reverse.
3) Will this damage the CPU in any kind?
It shouldn't
That said, it is never healthy for any chip to be at high temperatures. Intel processors generally shut down if it overheats (I don't have much experience with AMD though). In this sense, as long as temps are below 70, it wouldn't damage it much, maybe reduce its say 30 year life to 25 (doesn't really matter). What could be a problem is that it could throttle due to the excess temperature, leading to lower performance.
2) What is causing it?
Since you recently replaced your fan, it is only logical that this is causing it. The possibilities are:
- Bad (slow) fan itself.
- Fan incompatible with motherboard (different voltages). Highly unlikely, if it was a store of a certain level.
- Bad thermal compound.
- Bad fitting of the fan (most likely)
- Damaged motherboard or battery
1) What should I do?
Take it back to the store. If you are familiar with tweaking, try opening up and spotting loose screws, bad fitting etc. Also be sure of clean vents.
0) Does aging cause laptops to overheat
Inherently, no, practically, yes
As components get older, they do produce more heat, though this is generally years (decades). Overheating in old laptops can be blamed on blocked vents, bad fan bearings, maybe old hard drives with bad bearings etc. and not on the CPU as a thumb rule.
Why do you assume it's overheating? Where do you get that temperature reading from? So the service where they reapplied the thermal compound was two months ago? Did you not feel the heat before? – Seth – 2016-09-21T10:01:00.697
Take it back to the store that 'fixed' it, as they did such an apparently lousy job... – Tetsujin – 2016-09-21T10:01:36.517
@Seth It didn't felt this hot before not even remotely. And I'm using "CPUID HWMonitor" to measure the temps. I've installed only after I felt the heat. – noobs – 2016-09-21T10:06:38.423
@Tetsujin The store is far away from my place. When I called them regarding this, they asked me to keep the laptop to them for a week so that they could test it. Also I have a daily requirement of my only system(this one). – noobs – 2016-09-21T10:10:23.433
1So it's probably the CPU temp. Which while certainly warm can be well within the range. Did you change your usage pattern? What usually happens is that dust build up hinders the cooling but as it was recently fixed ... you probably should give it to (another?) shop to have a look at. They might have a spare device for the time it takes them to fix it. – Seth – 2016-09-21T10:54:47.893