LUFTHANSA GERMAN AIRLINES Vs. MADAN MOHAN SETHI

JUDGEMENT

(1.) The respondents/complainants, who are senior citizens, became members of the Miles and More Scheme (hereinafter referred as the scheme). According to them, they had 44,880 award miles and wanted to purchase tickets under the scheme for London/Europe for which 55,000 awarded miles were required. In order to make up the deficiency, they could purchase upto 10,000 miles on payment of 240 Euros under the scheme, but they would still be short by 120 miles. They, accordingly, requested the petitioners to allow them to purchase 120 miles extra on payment for purchase of tickets to London, but the same was refused. The petitioners subsequently booked tickets for internal travel in USA against the said awarded miles. The bookings were done through the petitioners with the United Airlines who are alliance partners of the petitioners. The said bookings except for one sector (Minami to New York) were admittedly wait -listed. The bookings were done 40 days in advance but the same were not confirmed by the petitioners. Accordingly, alleging deficiency in service, the complainants sought compensation of Rs.3 lakh inasmuch as the awarded miles earned by them would expire on account of non -use before 31.3.2005. The petitioners raised preliminary objections in the written statement filed before the District Forum which included that the complainants were not consumers inasmuch as the scheme was in the nature of added benefit to reward the passengers, who fly frequently with Lufthansa; no consideration of any nature was charged for the benefit provided under the scheme; that the scheme did not give rise to a binding contract between the parties and no rights accrued thereunder which could be enforced by a passenger. On merits, the plea of the petitioners was that even after purchase of 10,000 miles there would be shortage of 120 miles on account of which the petitioners were not entitled to get tickets to London under the scheme. On the issue of tickets relating to internal travel in USA, the stand taken was that the wait -listed seats could not be confirmed on account of non -availability of seats.

(2.) The District Forum had directed petitioners to pay Rs.3 lakh for deficiency in service, mental agony and harassment. The petitioners were also directed to pay Rs.20,000/ - towards cost of litigation.

(3.) The order of the District Forum was challenged by the petitioners before the State Commission. The State Commission held that the respondents were consumers. The State Commission also held that the respondents were entitled to reimbursement of the awarded miles earned by them since the petitioners had not confirmed their internal tickets in the USA. The State Commission, therefore, converted earned miles in terms of rupees and held that the miles earned by the each respondent is equivalent to 1077 euros which is equivalent to Rs. 64,620.60 per ticket. Therefore, according to the State Commission, the respondents were entitled for compensation to the tune of Rs. 1,29,240/ -. In addition, an amount of Rs. 20,000/ - was added as compensation for mental agony and harassment. In the result, the petitioners were directed to pay a lump -sum amount of Rs. 1,50,000/ - to the complainants.