CIVIL APPEAL NO. 9106 OF 2012
Case Title: M/S. RAJASTHAN ART EMPORIUM V. KUWAIT AIRWAYS & ANR.
Judgement dated: NOVEMBER 09, 2023.
CORAM: PRASHANT KUMAR MISHRA, A.S. BOPANNA
Introduction
The Apex court of the country i.e Supreme Court of India contended that an authority is obligated by the promise done by its agent under the Indian Contract Act.
The apex court contended that in the context of a consumer dispute where Kuwait Airways through its agent dagga a schedule of 7 days has been fixed for the delivery of certain goods. The court held that the airline was obligated to pay the damages to the plaintiff for not delivering the consignment by the time they had promised.
Facts of the case
It is been stated that it is an exporter of all kinds of handicrafts goods to several countries including the USA. The appellant/complainant had received an order from the USA for the supply of handicraft goods.
the goods were tendered after getting an assurance that the shipments would reach their destination at Memphis within 7 days and the delivery schedule was handed over to the appellant/complainant. As per the schedule, the entire consignment was supposed to reach at Memphis by 31.07.1996.
The consignments did not reach the destination in Memphis (USA) as per the delivery schedule. On inquiry, expressed its inability to deliver the consignments as per the delivery schedule provided to the 3 appellants and a revised delivery schedule was given on 05.08.1996, which mentioned the date of delivery on 06.08.1996. However, the consignment did not reach the destination even as per the revised delivery schedule.
Ultimately, the appellant/complainant lodged a complaint before the NCDRC with the prayer that respondent be 4 directed to refund a sum of Rs. 24,48,345/- being the fair charges for the consignments; pay a sum of Rs. 20 lakhs as compensation for loss of business and reputation; pay US$ 7042.00 being the value of the goods short delivered; pay interest @ 18% as well as cost of litigation, which was disposed of as abovesaid.
The council for the respondent submitted that the respondent should not be held liable for delay in service, as despite being aware of the fact, the appellant sent the consignment through Kuwait Airways, which has various stops over at Kuwait, Chicago, and Memphis, which would consume a lot of time to deliver the consignment.
Initially, the NCDRC passed a final order on 21.05.2003 holding that there had been a short delivery of 104 pieces equal to 1822 Kgs. Therefore, in view of Rule 22 of the Carriage by Air Act, multiplying this weight by US $ 20 per Kg., the amount payable works out to US $ 36440 which becomes payable by the respondent to the complainant for the loss of goods.
Challenging the above order of the NCDRC, the complainant preferred Civil Appeal bearing which was allowed by this Court This Court observed that the issue concerning delay in delivery of goods has been decided by NCDRC without appreciating the material and evidence available on record. Resultantly, the matter was remitted back to NCDRC for fresh consideration of the complainant’s case vis-à-vis delay in delivering the consignment.
The NCDRC had directed a compensation of Rs. 20 Lakhs to be paid to the Complainant, even though it was acknowledged that the loss sustained by them was higher than that. It held by the NCDRC that the complainant was entitled to only Rs. 20 lakhs
Analysis of the court
Justice AS Bopanna and Justice PS Narasimha contended that Once the agent has issued a time schedule for delivery of the consignment, it cannot be said that there is no material indicating that there was no agreement for delivery of the consignment in time
In view of the foregoing reasons, we are not inclined to interfere with the Order passed by the NCDRC, and resultantly both the Civil Appeals deserve to be and are hereby dismissed.
The parties shall bear their costs.
Pending application(s), if any, shall stand disposed of
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Written by
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