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M/S. Rajasthan Art Emporium vs. Kuwait Airways & Anr.

Civil Appeal · 2023 INSC 996Decided 9 Nov 2023
Civil Appeal No. 9106 of 2012
A.S. Bopanna · Prashant Kumar Mishra

Background

Rajasthan Art Emporium, a handicrafts exporter, booked an urgent air-cargo shipment through Kuwait Airways (via an agent) to reach a major US buyer in Memphis within seven days. The shipment was delayed by over a month, part of the cargo went missing for a time, and the buyer complained of short delivery. The exporter sought compensation before the National Consumer Disputes Redressal Commission (NCDRC), which, after an earlier round that reached the Supreme Court and was sent back for fresh consideration, ultimately awarded the exporter Rs. 20 lakh plus interest and further compensation for the delay, capped at what had actually been claimed. Both the airline and the exporter cross-appealed to the Supreme Court, the airline disputing liability and the exporter seeking a larger sum.

Decision Breakdown

The Supreme Court held that the airline's booking agent had promised delivery within seven days, and since the airline never disputed that this agent acted with its authority, the airline was bound by that promise under the law of agency (Sections 186-188 of the Contract Act, 1872). Because the goods were delivered one and a half months late, the Court found clear negligent delay under Sections 19 and 13(3) of the Carriage by Air Act, 1972, entitling the exporter to damages. On the exporter's cross-appeal for a higher amount, the Court held that a party cannot be granted relief beyond what it originally claimed in its complaint, since the exporter had claimed only Rs. 20 lakh as compensation, it could not now claim more. Both appeals were dismissed, and the NCDRC's award was upheld with each side bearing its own costs.

Lesson Learnt

An airline or carrier is legally responsible for delivery commitments made by its authorised booking agents, and delay beyond a promised schedule can attract compensation under carriage law; equally, a claimant must plead the full relief it wants at the outset, because courts generally will not award more than what was originally sought.

Official source (sci.gov.in)View Judgment (PDF)

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