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NATIONAL CONSUMER DISPUTES
REDRESSAL COMMISSION, NEW DELHI
Hon’ble Mr. Justice D.P. Wadhwa, President; Mr. Justice C.L. Chaudhry,
Mr. Justice J.K. Mehra, Mrs. Rajyalakshmi Rao
& Mr. B.K. Taimni, Members
BHARATHI KNITTING CO.—Complainant
versus
BRITISH AIRWAYS & ANR.—Opposite Parties
Original Petition No. 296 of 1994—Decided on 28.9.2001

Advocates:
Counsel for the Parties :
For the Complainant :Mr. M.N. Krishnamani, Sr. Adv. with Mr. K.K. Mani, Advocate.
For the Opposite Party No. 1 :Mr. M. Wadhwani, Advocate.
For the Opposite Party No. 2 :Mr. Anil Mittal, Advocate.

Headnote:Consumer Protection Act, 1986-Section 2(1)(g) and 14-Misdelivery of consignment by Airways-Deficiency in service-Compensation claim-Consignment of 22,320 pieces of knitted ladies pullovers booked to be delivered to U.K. -Entrustment of goods to Opposite Party No. 1 by Airways Bill-Consignment was to be transported only on 24-12-1992 by British Airways-Lifting of cargo one day earlier contrary to Airways Bill-Complainant decided to change name of consignee on 23-12-1992-Complainants communication to Opposite Party No. 2, Agent of Airways to change name of consignee communicated on 23-12-1992-Whether complainant could change name of consignee after AWB had been prepared? -(Yes)-Delivery of consignment to wrong consignee without Bank release order-British Airways and not its Agents held liable for deficiency of service in delivery of consignment-Liability to pay amount of Rs. 19,58,448/- (value of goods) with interest @ 12% from 24-1-1993-Award of Rs. 10,000/- as costs.

       The actual delivery of the consignment took place on 24th February, 1993 at 12.25 hrs. because import licence was granted only on 28th January, 1993 and this is admitted in the reply of Opposite Party No. 1 vide telex from London on 24th February, 1993 at 18.04 hrs. IST (13.40 GMT). Whereas throughout Opposite Party No. 1 was pleading that the cargo was released after all the clearances were done on 23rd December, 1992 itself and that once documents are claimed by consignee under Rule 13(1) of Carriage by Air Act, 1972 nothing could be done. We refer to Rule 13(1) which is "Except in the circumstances set out in preceding rule the consignee is entitled on arrival of the cargo at the place of destination to require the carrier to hand over to him airway bill and to deliver the cargo to him on payment of the charges due and on complying with the conditions of carriage set out in the airway bill it is clear that the right of original consignee to take delivery", under Rule 13(1) is subject to the consignors rights under Rule 12(1) to change the consignee at any time before delivery. Rule 13(1) starts with a clause subject to Section 12, besides the delivery of consignment has taken place only on 24th December, 1992 at 12.10 GMT and Opposite Party No. 1 was aware of delivery proceedings and this information was not given to the Complainant in time to enable him to take legal action in London and he could have obtained injunction order from the court before the consignment left the premises of the warehouse and that is two months. Instead, Opposite Party No. 1 was misleading Complainant that the delivery was given on 23-12-1992 itself whereas clear 24 hrs. time was still there from appearance of the agent to the delivery of cargo on 24-12-1992 and of course it was not even cleared out of their premises till 24-2-1993. Under Rule 12 of Carriage by Air Act, complainant exercises his right to give instructions for change of delivery of the consignment.

       Consumer Protection Act, 1986-Sections 2(1)(g) and 14-Consignment of goods, misdelivery by Airways-Inordinate delay in finding out whereabouts of consignment-Information of consignment supplies two years after filing the complaint and four years after the incident took place-Deficiency on the part of British Airways in rendering service-Complainants suffering loss, as to be compensated-Airways directed to pay amount of goods with interest @ 12 per cent p.a.

       It is only in the year 1996, opposite party No. 1 brought out this affidavit for the first time wherein it is admitted that the goods were released from their cargo centre at 1225 hours on 24th December, 1992 which was not disclosed earlier to the complainant or opposite party No. 2 inspite of their persuits. Opposite party No. 1 brought out on record, the Warehouse Location Record, Delivery Receipt, Goods Release Note and Copy of AWB only in 1996 afer the complaint is filed while booking in the cargo delivery details and the same could have been given to opposite party No. 2 and the complainant in the year 1992 itself. Opposite party No. 1 has not endeavoured to get the affidavit of Viscount International who processed the documents and took the release of the cargo on 24.12.1992 at 12.25 hours from opposite party No.1. Opposite party No. 1 had the information of the change of the consignee on 23.12.1992 at 16.10 hours IST and also had 24 hours on hand to be able to let the complaint and opposite party No. 2 to know and under Rule12, they had to stop delivery of the consignment to Viscount International. Instead, they misguided opposite party No. 2 and the complainant that the goods were delivered on 23.12.1992 and disabled him further from taking action through Court.

       From the above discussion, it clearly spells out that there is a deficiency on the part of opposite party No.1 rendering the service and on that account, the complainant has suffered a loss for which he has to be compensated. The goods were delivered for carriage on 24th December, 1992 and the complainant was appraised of the fate of the consignment in 1996. This inordinate delay on two years itself constitute a clear case of deficiency of service on the party of the opposite party No.1.

       Carriage by Air Act, 1972-Rule 12(1), Schedule II-Contract of carriage with Airways-Change of name of consignee-Whether complainant can change name of consignee after AWB has been prepared-(Yes)-Complainant having exercised his right to give instructions for change of delivery of consignment-Misdelivery of consignment held deficiency in service-Sections 2(1)(g) and 14-Consumer Protection Act, 1986.

       The actual delivery of the consignment took place on 24th February, 1993 at 12.25 hrs. because import licence was granted only on 28th January, 1993 and this is admitted in the reply of opposite party No. 1 vide telex from London on 24th February, 1993 at 18.04 hrs. IST (13.40 GMT). Whereas throughout opposite party No. 1 was pleading that the cargo was released after all the clearances were done on 23rd December, 1992 itself and that once documents are claimed by consignee under Rule 13(1) f Carriage by Air Act, 1972 nothing could be done, We refer to Rulke 13(1) which is Except in the circumstances set out in preceding rule the consignee is entitled on arrival of the cargo at the place of destination to require the carrier to hand over to him the airway bill and to deliver the cargo to him on payment of the charges due and on complying with the conditions of carriage set out in the airway bill it is clear that the right of original consignee to take delivery, under Rule 13(1) is subject to the consignors rights under Rule 12(1) to change the consignee at any time before delivery. Rule 13(1) starts with a clause subject to Section 12, besides the delivery of consignment has taken place only on 24th December, 1992 at 12.10 GMT and opposite party No. 1 was aware of delivery proceedings and this information was not enable him to take legal action in London and he could have obtained injunction orders from the court before the consignment left the premises of the warehouse and that is two months. Instead, opposite party No 1 was misleading complainant that the delivery was given on 23.12.1992 itself whereas clear 24 hrs. time was still there from appearance of the agent of the delivery of cargo on 24.12.1992 and of course it was not even cleared out of their premises till 24.2.1993. Under Rule 12 of Carriage by Air Act, complainant exercises his right to give instructions for change of delivery of the consignment.

ORDER

Mrs. Rajyalakshmi Rao, Member—This complaint is filed by M/s. Bharati Knitting Co., a sole proprietorship concern represented by its proprietor Mr. V. Rajalingam, having their office at 42, Valipalayam Extension, Bharathi Street, Tirupur, Tamilnadu. The complaint is regarding deficiency in service regarding export consignment to be delivered by (opposite party No. l) M/s. British Airways and M/s. Zeus Air Services, (opposite party No. 2) through whom the booking was done. The facts of the case are as follows.

2. The complainant sent a consignment of 22,320 pieces of cotton knitted ladies pullovers valued of DEM 1,09,368 (equivalent Indian rupees being Rs. 19,58,448/-) under an order No. 2027 dated 13th October, 1992 by M/s. Regime Modevertriebs GMBH of Germany to be delivered to M/s. E.U.F. London Ltd., Route Master Building, Walton Avenue, Pelistine G.B. Suffolk, IF 118 HE (U.K.) and accordingly raised Invoice No. 79 dated 27th November, 1992 for the said sum. M/s. Zeus Air Services (opposite party No. 2) were entrusted to do the documentation and custom clearance and the consignment was delivered to M/s. British Airways (opposite party No. 1) on 22nd December, 1992 after all the clearances were fulfilled. According to the Airways Bill No. 125-3747-0661 dated 21st December, 1992, was raised and the consignment was to be lifted and taken on 24th December, 1992 by flight B.A. No. 138.

3. It is stated by the complainant that though initially the name of the consignee was M/s. E.U.F. London Ltd., a direction was given to notify M/s. Regime Products, Robert-Busch Str-3, 7038 Holzerlingen, Germany, after the dispatch formalities were over, he opted to change the name of the consignee to German Bank i.e., “Suedwest Deutsche Lands Bank”, Girwestdeut-Che, Mannheim, Germany” with instructions to notify the original consignee M/s. E.U.F. London Ltd., and “Regime Products”. After the goods were dispatched, opposite party-1 was informed to make sure that the Bank alone should be specifically treated as consignee. As per this arrangement, M/s. E.U.F. London Ltd., should take delivery of the consignment through the Bank.

4. Instead of flying the cargo on 24.12.1992 by BA-138 as per the Airway Bill, O.P. 1 lifted the consignment one day earlier i.e. on 23.12.1992 by BA-144 at 00.05 hrs. IST (19.35 GMT) on 22.12.1992 and arrives at 9.45 hrs. IST (05.15 hrs. GMT) on 23.12.1992, whereas the complainant was not aware of the change. It is stated that the instructions of change of name of consignee were not followed by both the respondents and as a result of which the consignment was delivered to M/s. E.U.F., London, directly without invoking Bank and this action of both the respondents brought great loss to the complainant. As per the Letter of Credit, payment should be made after 30 days sight and the German Co., i.e., M/s. Regime Modervertriebs has to make payment to the German Bank within 30 days from the date of clearance. The complainant’s Bank at Tirupur, Tamilnadu did not receive any payment from the German Bank and then, the complainant was reminded about the said non-payment from his Bank. Ever since, the complainant has been frantically requesting for information regarding the non-delivery of the consignment. Finally on 21st June, 1993, as a reply to many reminders and letters from opposite party-2, on 9th June, 1993 and 14th June, 1993 to opposite party-1 the latter replied to opposite party-2 that “due to some aberration in the system consignment was delivered to the consignee without obtaining the Bank release order” and expressed their regret for inconvenience caused due to misdelivery of the consignment.

5. It is urged by the complainant that it was only after six months, opposite party-1 discovered that the consignment was delivered without obtaining the Bank release order and this wrong action caused great loss to his business and since opposite party No. 1 acknowledge this fact, it is an admission of their fault and hence amoun
































































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