In a landmark judgment, the Supreme Court of India has held airlines accountable for delays in delivering goods, emphasizing that they are bound by the delivery dates promised by their agents. This ruling, which pertains to a case dating back to 1996, sets a significant precedent in the realm of consumer rights and airline responsibilities.
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The case involved Rajasthan Art Emporium, an exporter of handicrafts, which filed a complaint in 1997 after a shipment booked through Kuwait Airways failed to reach the United States within the assured seven-day timeline. The consignment, booked on July 24, 1996, was delivered approximately one and a half months later, between September 3 and 12, 1996.
The Supreme Court bench, comprising Justices A.S. Bopanna and P.S. Narasimha, noted,
“As a matter of fact, it is an admitted position that the consignment which was booked on 24.07.1996, was delivered after one-and-a-half months, i.e., from 03.09.1996 to 12.09.1996.”
The bench further observed that there was a
“negligent delay in the delivery of consignment.”
In its defense, Kuwait Airways argued that the Rajasthan Art Emporium did not specify a time by which the consignments had to reach their destination, claiming that time was not the essence of the contract between the parties. However, the Supreme Court held,
“Once the agent has issued a time schedule for delivery of consignment, it cannot be said that there is no material indicating that there was no agreement for delivery of the consignment in time.”
Earlier, in October 2012, the National Consumer Disputes Redressal Commission (NCDRC) had directed the airline to pay the complainant $50,070 (up to Rs 20 lakh) along with 9 percent per annum compensation from July 1996 until its realization. The Commission pointed out that the air freight, which is 10 times more expensive than sea freight, was chosen specifically to ensure that the consignment reached its destination within a week, as sea cargo would have taken 25 to 30 days for delivery.
Upholding the NCDRC’s order, the Supreme Court stated,
“We approve and sustain the order passed by the NCDRC.”
This judgment by India’s apex court reinforces the accountability of airlines for the commitments made by their agents and underscores the importance of adhering to promised delivery schedules in commercial transactions.
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