LI Network
Published on: November 13, 2023 at 11:57 IST
The Supreme Court, in a recent ruling, emphasized that an airline is obligated to adhere to the time schedule committed by its agent under the Indian Contract Act.
The case involved a consumer dispute where Kuwait Airways, acting through its agent Dagga Air Agents, had committed to delivering goods within 7 days.
The court held the airline liable for damages due to a delay in delivering the consignment. The court stated that once the agent sets a delivery schedule, there is an implied agreement for timely delivery.
The case involved a complainant, an exporter of handicrafts, who engaged Kuwait Airways to transport goods through Dagga Air Agents. Despite the agreed-upon 7-day schedule, the consignment reached its destination one and a half months later. The court ruled in favor of the consignee, stating they are entitled to seek damages for the delay.
The court highlighted relevant sections of the Contract Act, emphasizing that an agent, with the authority to act, can do everything necessary for the lawful execution of the act. The absence of a plea that the agent had no authority released the airline from liability.
The appellant, who paid significantly higher air freight charges for a quicker delivery than sea freight, sought compensation. The court, citing Sections 19 and 13(3) of the Carriage by Air Act 1972, held the airline liable for the damages caused by the delay.
Despite the National Consumer Disputes Redressal Commission (NCDRC) awarding Rs. 20 lakhs in compensation, the appellant, unsatisfied with the amount, approached the Apex Court seeking the entire loss. However, the Apex Court upheld the NCDRC’s decision, emphasizing that a party cannot seek relief not specifically prayed for in the complaint.
In conclusion, the Supreme Court’s decision underscores an airline’s responsibility to honor time schedules committed by its agents, holding them accountable for damages resulting from delivery delays. The case sets a precedent for enforcing agreements made through agents in consumer disputes.
CASE NAME: M/S. RAJASTHAN ART EMPORIUM V. KUWAIT AIRWAYS & ANR., CIVIL APPEAL NO. 9106 OF 2012
- Citation: 2023 LiveLaw (SC) 975