Consumer protection: Limited claim for lost baggage

Airline liable to pay compensation of Rs 125 a kg for lost luggage, under the Carriage by Air Act

Manish Nagpal was travelling from Raipur to Delhi on November 30, 2013 by Indigo flight 6E454 operated by Interglobe Aviation. He checked in a suitcase weighing 15 kilograms (kgs).

When the flight landed at Delhi, Nagpal could not find his suitcase. He lodged a complaint with the airline, which offered a compensation of Rs 3,000. Nagpal did not accept the amount claiming that the suitcase contained clothes and other items worth Rs 42,673. He also contended that he was forced to purchase new clothes at an expense of Rs 25,000, which, too, should be reimbursed to him. As the airline refused to pay this amount, Manish filed a complaint before the District Forum seeking a total compensation of Rs 97,673.

The airline contested the complaint, saying that its liability was limited under the “Carriage by Air Act”, and that it was liable to pay a maximum amount of Rs 3,000. The Forum over ruled the airline's contention and ordered it to pay Rs 42,673 towards the lost clothes and Rs  5,000 for the suitcase, totalling Rs 47,673. It also awarded 9 per cent interest. Additionally, Rs 10,000 was awarded as compensation for mental agony and Rs 2,000 as litigation costs. The airline challenged the order before the Chhatisgarh State Commission, which dismissed its appeal. It then filed a revision petition.

Jehangir B Gai

The National Commission observed that the dispute involved a question of law as to whether the airline could restrict its liability in terms of the Carriage by Air Act. Also, whether a consumer forum could award compensation commensurate with the loss incurred, along with compensation for harassment and mental agony.

The National Commission considered the provisions of Rules 22, 23 and 25 which were framed in accordance with the Warsaw Convention and the Hague Protocol. The rules provide that the liability of a carrier for loss of registered baggage and cargo is limited to 250 francs per kg of loss.

The Commission relied on a precedent where a five-member bench, in The Manager, Air India vs Ms India Everbright Shipping & Trading Company in First Appeal No 451 of 1994 decided on April 20, 2001, had observed that the Consumer Protection Act was an additional remedy which would not be in derogation of any other law. Since the liability of the airline is limited by the Carriage of Air Act, the consumer fora cannot award compensation in excess of the prescribed limit. 

The Commission noted that the Government of India had issued notification March 30, 1973, under which 250 francs per kilogram has been substituted with Rs 125 per kilogram.

The Commission concluded that the airline was justified in limiting the claim for the lost baggage and that Nagpal was not entitled to any amount in excess of Rs 3,000. Since the airline had made the offer even prior to the filing of the consumer complaint, the Commission held that Nagpal would not be entitled to the litigation cost.

Accordingly, by its order of April 25, 2017 delivered by Justice V K Jain, the National Commission allowed the airline's revision and dismissed the complaint. However, it observed that the amount of Rs 3,000 which had been offered should be paid.

The author is a consumer activist