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THE STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, DELHI
Hon’ble Mr. Justice R.N. Mittal, President &
Dr. A.N. Saxena, Member
RAKESH VAID—Complainant
versus
AIR INDIA HIMALAYA HOUSE & ANOTHER—Respondents
C-120 of 1992—Decided on 1.7.1994

Advocates:
Counsel for the Parties :
For the Complainant : Nemo.
For the Respondents:Mr. Viplav Sharma, Advocate.

The carrier is liable for damages caused to goods due to the fault of the carrier or his agents. The carrier is duty-bound to inform the consignor about the documents required to accompany the airway bill. Failure to do so amounts to negligence on the part of the carrier.

Headnote:

CARRIAGE BY AIR ACT, 1972 - SECTION 16 - LIABILITY OF CARRIER - NEGLIGENCE - DAMAGES - CONSUMER PROTECTION ACT, 1986 - SECTION 27 - ENFORCEMENT OF ORDER - The carrier is liable for damages caused to goods due to the fault of the carrier or his agents. The carrier is duty-bound to inform the consignor about the documents required to accompany the airway bill. Failure to do so amounts to negligence on the part of the carrier.

Fact of the Case:

The complainant entrusted the O.P. with a consignment of readymade garments for shipment to Venezuela. The goods reached Caracas, the capital of Venezuela, but were auctioned by the Custom Authorities due to the absence of certain documents. The complainant filed a complaint against the O.P. for recovery of the value of the goods, freight charges, and other losses.

Finding of the Court:

The court held that the damage to the goods was caused due to the negligence of the carrier. The carrier failed to inform the complainant about the documents required to accompany the airway bill. The court also held that the carrier cannot derive any benefit from Rule 16 of the Carriage by Air Act, 1972, as it was not shown that the carrier asked the consignor to give the commercial invoice of the goods and inspite of that, they failed to do so.

Issues: 1. Whether there was any negligence on the part of the O.P. on account of which complainant suffered loss. 2. How much amount the complainant is entitled to get from the O.P.

Ratio Decidendi: 1. The carrier is duty-bound to inform the consignor about the documents required to accompany the airway bill. Failure to do so amounts to negligence on the part of the carrier. 2. The complainant is entitled to recover the value of the goods and freight charges from the carrier.

Final Decision: The complaint was allowed and the O.P. was directed to pay 21462 US Dollars at the rate prevalent at the time of booking the goods and Rs. 98,060.00.

ORDER

Mr. Justice R.N. Mittal, President— Briefly the facts are that the complainant entrusted to the O.P. a consignment of 47 bags containing readymade garments for shipment to Porlamar (Venezuela) on 15-11-91. He paid the freight and other charges amounting to Rs. 98,060/- in advance. The value of the garments, it is alleged, was 21,462 US Dollars equivalent to Rs. 5,52,647/-.

2. It is further pleaded that the goods did not reach the destination within a period of three months, which was due to negligence and deficiency in service of the O.P. Consequently, he suffered a loss of Rs.9,28,077/- as detailed below:—

i) For value of goods US $ 21462 Rs. 5,52,647.00

ii) Freight paid by thecomplainant to theopposite party Rs. 98,060.00

iii) 7% loss of DBK (to be refunded) Rs. 38,685.00

iv) Loss of premium on entitlement @ 7% Rs. 38,685.00

v) Damages claimed by the foreign buyer due to non-delivery of the garments Rs. 2,00,000.00

Rs. 9,28,077.00

He has filed a complaint for recovery of the said amount against the O.P.

3. The O.P. contested the claim and interalia pleaded that the space on Venezuela International Airlines (Viasa) between Frankfurt to Porlamas was confirmed in advance from them (Viasa) and the goods were sent from Delhi to Frankfurt after making the said confirmation. The goods reached Frankfurt but the shipment could not be air-lifted from there to Porlamas as the Viasa pilots were on strike. The shipment was, therefore, sent on Lufthansa from Frankfurt to Caracas, from where it was to be sent to Porlamas.

4. It is further pleaded that the complainant requested the O.P. vide letter dated 22-192 to change the consignee’s name, as the original consignee had refused to accept the consignment. The O.P. wrote a letter dated 281-92 requesting the complainant to forward ‘no objection certificate’ from the Bank and demand draft of Rs.100/- to enable them to take further action. It is alleged that the complainant did not forward the documents as requested by them. The Caracas CustomAuthorities detained the consignment at Caracas as commerical invoice was not attached to the Airway Bill of shipment. It is pleaded that they ultimately auctioned the goods since there was no response from the consignee even after 37 days of the arrival of the consignment.

5. The first question that arises for determination is, whether there was any negligence on the part of the O.P. on account of which complainant suffered loss. It is not disputed that the goods reached Caracas, the capital of Venezuela. There the CustomAuthorities pointed out that the goods were not accompanied by certain documents. They requested for the documents, which were not supplied to them and conesquently they auctioned the goods. It is, therefore, to be seen on account of whose negligence the documents were not supplied. In ordinary course the carrier should inform the consignor before booking the goods, which of the documents should accompany the goods as the consignor is generally a lay man and does not know the rules, regulations and practices for booking the goods on the international flights the carrier is an expert in this line. Therefore, they are duty bound to inform them about the formalities. If inspite of being informed the consignor fails to supply the documents, it is advisable that the carrier should not book the goods. If at the insistence of the consignor, he does so, the carrier will not be responsible for the loss suffered by him.

6. The learned Counsel for the O.P., faced with this situation, relied upon Rule 16 Chapter II of Schedule I of the Carriage by Air Act, wherein it is provided that the consignor must attach to the air consignment note such documents as are necessary to meet the formalities of customs, octroi or police before the goods can be delivered to the consignee. The consignor is liable to the carrier any damage occasioned by the absence, in-sufficiency or irregularities of any such documents, unless the damage is due to the fault of the carrier












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