Airlines are obligated to adhere to the time schedule committed by their travel agents : Supreme Court
The Supreme Court, in the case of M/S. Rajasthan Art Emporium v. Kuwait Airways & Anr., ruled that an authority is bound by the commitments made by its agent under the Indian Contract Act. This decision, relevant to a consumer dispute, involved Kuwait Airways and its agent, Dagga Air Agents, who had stipulated a 7-day delivery schedule for certain goods. The Court held Kuwait Airways responsible for damages due to a delay in consignment delivery.
The Court emphasized that once an agent establishes a time schedule for delivery, it implies an agreement for timely delivery. The case originated from a complaint by an exporter of handicrafts against Kuwait Airways and Dagga Air Agents. Despite the agreed 7-day delivery schedule, the consignments arrived one and a half months later. The Court affirmed the consignee's right to seek damages for the delay.
The Appellant, facing higher air freight charges than sea freight charges, opted for air transport to ensure timely delivery within a week. The Court cited Sections 186 and 188 of the Contract Act, highlighting that an agent, with authority, can perform all necessary lawful actions. The Court held that Kuwait Airways was bound by its agent's promise and negligent delay in consignment delivery.
The Apex Court held that the delay caused damage, and Kuwait Airways is liable for compensation under Section 19 and 13(3) of the Carriage by Air Act 1972. Despite the NCDRC acknowledging a higher loss, it awarded Rs. 20 Lakhs in compensation, as requested by the complainant. The Supreme Court upheld this decision, emphasizing that parties cannot seek relief beyond what they formally request. The complainant's attempt to claim a higher amount was rejected by the Court, emphasizing the importance of seeking relief commensurate with the original prayer.