OLD VILLAGE INDUSTRIES LTD Vs. AIR INDIA

JUDGEMENT

(1.) This Original Petition under Section 21 of the Consumer Protection Act, 1986 by M/s. Old Village industries Ltd. was originally directed against Air India but subsequently the prayer of Air India for impleadment of KLM Royal Dutch Airlines (for short called K.L.M.) as additional opposite party was allowed by this Commission in the order dated 11.1.95.

(2.) The facts which are not in dispute may be first noticed. The complainant through its agent M/s. A.T. Travels, New Delhi entrusted to Air India 100 packages of ready-made garments for carriage from New Delhi to MANZINI/ MOPUTO, Swaziland. Photo copies of two Air- way Bills bearing No. 098-5671 8056 for 40 packages and 098-5671 8060 for 60 packages are on record and contain all the particulars of the bookings. 40 packages contained readymade garments of cotton mill made (Denim) Ladies Jacket QTY. 1000 pieces. 60 packages contained readymade garments of Cotton P/L ladies Jacket Style No. 98-910 Qty. 1500 pieces. A total sum of Rs. 1,19,615/- (Rs. 47,640.50 plus Rs. 71,913.75) was paid by the Complainant to Air India as freight charges. The consignee named in the Air Waybills was M/s. A & M Imports Exports Pvt. Ltd., Swazi Plaza, Mbabane, Swaziland and the party to be notified on arrival of the shipment at destination was M/s Tivershield Ltd., 1st Floor, Linton House, 24, Wells Street, London, WIP, 3FG, U.K. The Airway Bills contain an endorsement to please inform consignee on arrival of cargo.

(3.) The complainant alleged in the complaint that it did not hear about the delivery of the said consignments at the destination for a considerable period and after making enquiries from Air India it was learnt that the consignments were mishandled by Air India and instead of carrying the same to the place of destination, wrongly carried them to Nairobi, but no flight details were furnished. The complainant by its detailed letter dated 20th June, 1990 wrote to Air India that since they had failed to deliver the consignments at the place of destination, they were liable to pay the claim resulting from non- delivery/mishandling of the shipments in the sum of Rs. 26,10,865/-. The letter dated 20.6.90 was acknowledged by Air India in its letter dated 12.7.90 assuring that "we are concerned that your shipments have been mishandled" and that investigation were being carried out and they would revert once the investigations were through. As there was no further report of investigation, the complainant sent a legal notice dated 9,11.90 through Counsel. The complainant was informed by Air India letter dated 5.11.90 that the shipments covered under Airway Bill No. 098-56718060 dated 21.3.90 were collected by the named consignee on 29.8.90. The complainant pursued its claim with Air India through another legal notice dated 27.12.90 and by complainants' letters dated 7.6.91, 3.9.91,10.12.91, 22.4.92 and 15.6.92. The Air India in its letter dated 6/10.8.92 wrote that the complainant's claim was not tenable. The complainant again issued another legal notice dated 18.9.92 through Counsel. The complainant further averred that Air India has been negligent in handling of the shipment resulting in the loss of the consignments and consequential financial loss to the complainant. Air India as the carrier of the consignments has failed, according to the complainant, to discharge its contractual obligations resulting into non-delivery of the shipments to the consignee/ notified party and the complainant would not have suffered financial loss had Air India acted in accordance with the contract and law and not with mala fide intentions, ulterior motive, gross carelessness and negligence. The Complainant claims to be a consumer as defined by Section 2(1)(d) of the Consumer Protection Act, 1986 (hereinafter called the Act) inasmuch as it hired the services of Air India for a valuable consideration and the service rendered by Air India is deficient as it failed to carry and deliver the consignments. The complainant has claimed several reliefs including the price of the consigned goods as per the Airway Bill (Rs. 7,62,500/-), freight charges (Rs. 1,19,615/-), loss on account of duty draw back, (Rs. 68,625/-), loss of profit on REP (Rs. 20,000/-), post shipment benefits (Rs. 50,000/-), possible claim from buyers loss on potential business and adverse effect on current production (Rs. 3,50,000/-), simple interest at the rate of 18% on the said amounts (Rs. 8,24,158/-), Reserve Bank of India 100% amount to be recovered from the complainant due to involvement of foreign exchange (Rs . 7,62,500/-), 100% penalty to be imposed under FERA Act (Rs. 7,62,500/-), legal expenses (Rs. 50,000/-) and compensation for loss (Rs. 2,00,000/-) in all Rs. 39,69,898/- against Air India beside pendente lite interest.