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2008 Supreme(SC) 1483

Supreme Court of India
THE HONOURABLE MR. JUSTICE TARUN CHATTERJEE & THE HONOURABLE DR.
JUSTICE MUKUNDAKAM SHARMA
M/s. KLM Royal Dutch Airlines
Versus
Director General of Investigation & Registration
Civil Appeal No. 815 of 2002
Decided On: 03-10-2008

Advocates Appeard:
For the Appellant:A.K. Ganguly, Sr. Advocate, S.C. Ghosh and Atishi Dipankar, Advocates.
For the Respondent:V. Shekhar, Sr. Advocate, Shalini Kumar, B.K. Prasad
and Shreekant N. Terdal, Advocates.

Headnote:Monopolies and Trade Restrict Practices Act, 1969:- Where in the complaint under Section 36(i) A with regard to missing of two parcels out of three booked through air cargo were missing and found out after the happening of an even, the Commission found the appellant guilty of unfair trade practice, the order is set aside as no false misrepresentation alleged in the complaint.

Judgment:

Dr. Mukundakam Sharma, J.

Challenge is made in the present appeals under Section 55 of the Monopolies and Restrictive Trade Practices Act, 1969 (for short "MRTP Act"), whereby the final judgment and orders dated 11.10.2001 and 12.11.2001 passed by the Monopolies and Restrictive Trade Practices Commission, New Delhi (for short MRTP Commission) are being questioned. The appellant is aggrieved by the order and direction issued against by them by the MRTP Commission and also by dismissal of the miscellaneous application filed by them holding that there is no apparent error on the face of the record.

2. The appellant is a worldwide airlines company with its headquarters at Amsterdam, Netherlands. A complaint was filed by M/s. Maharajah & Co. (hereinafter also referred to as Complainant) contending inter alia that they booked a consignment with the appellant airlines vide Airway Bill dated 21.09.1995. The said consignment comprised three parcels containing Badges and Crests, which were to be used on very specific tournaments/meetings/conference dates. The consignment was booked for carriage from New Delhi to New Orleans, USA. It was stated in the said complaint that on 26.09.1995 the complainant received a message from the appellant airlines that two out of the three parcels were missing. This message of 26.09.1995 was followed by another message of 03.10.1995 informing the complainant that in spite of efforts made by the appellant, the baggage could not be found and therefore it was suggested to the complainant that a claim could be filed with the underwriters if the aforesaid shipment was covered by insurance. The appellant airlines also asked the complainant to furnish necessary documents to process the claim. Near about the same time, the appellant airlines traced out the said two missing parcels and informed the complainant through its letter dated 24.10.1995, contending inter alia that the aforesaid two parcels have been traced out and the same have since been forwarded to the destination on 20.10.1995.

A stand was, however, taken on behalf of the complainant that the aforesaid delivery of the two parcels after the event was over was of no use to the customer in USA. The complainant also took up a plea that it had already lost goodwill due to delay in the delivery of goods to the buyer. The complainant, therefore, made a claim of Rs.6 lakh from the appellant on account of its negligence and deficiency in service. It may be stated here that the complainant has also filed a separate complaint before the Delhi State Consumer Redressal Forum for payment of compensation in terms of the Consumer Protection Act, 1986, which is pending for disposal till date.

3. On receipt of the aforesaid complaint filed by M/s. Maharajah & Co. the respondent issued a notice to the appellant on 22.10.1996 calling for its comments on the complaint along with other information and documents. The appellant furnished its reply contending inter alia that the rules relating to loss, damage or delay to cargo and compensation for the same in international air transportation is governed by the Carriage by Air Act, 1972 and the Schedule attached thereto and in terms of the said Act the liability of the carrier is subject to the rules relating to liability established by Warsaw Convention, 1929. After receiving the aforesaid reply the respondent, which is a statutory authority, came to the prima facie conclusion that the appellant failed to render services which were expected from it and that the trade practice carried on by the appellant thus constitutes an unfair trade practice falling under clauses (ii), (iv) and (vi) of Section 36A (1) of the MRTP Act. Consequently, the respondent filed an application for registration and investigation before the MRTP Commission, New Delhi, in terms of the provisions of Section 36 (B) of the MRTP Act.

4. The Commission after receipt of the aforesaid application took up the same for consideration and issued notice a











































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