Summary
The Supreme Court upheld compensation for negligent delay in air delivery of handicraft consignments. The carrier was bound by its agent’s delivery commitment on the admitted agency relationship, but the exporter could not claim more for business and reputation loss than the Rs.20 lakh sought in its complaint. Both cross-appeals were dismissed and the NCDRC award left intact.
Issues
- Whether the carrier was liable for missing the delivery schedule supplied by its booking agent.
- Whether compensation could exceed the amount specifically claimed for loss of business and reputation.
Provisions considered
- Rules 13(3) and 19, as quoted in the judgment, Carriage by Air Act, 1972The carriage rules support enforcement of contractual rights after the stated non-arrival period and liability for damage caused by delay in air carriage. (¶ 20–21)
- Sections 186, 187, 188 and 237, Indian Contract Act, 1872Express, implied and ostensible agency principles informed the conclusion that the carrier was bound by the delivery schedule supplied by its acknowledged agent. (¶ 22–23)
Held
- The original and revised schedules, admissions and actual delayed delivery supported the finding of deficient service. The NCDRC’s finding of delay was neither illegal nor perverse. (¶ 17–20)
- The carrier had not denied the agency relationship or pleaded that the agent exceeded its authority in giving the schedule. On that record it was bound by the promise of delivery within a week; delivery after about one and a half months constituted negligent delay. (¶ 20–23)
- Paying substantially higher air freight to secure early delivery and the evidence of the buyer relationship supported the conclusion that the delay caused compensable loss. (¶ 18–21)
- Although the exporter sought a larger weight-based sum on appeal, its complaint limited business and reputation damages to Rs.20 lakh. A party cannot obtain relief beyond that prayed for, and the NCDRC’s cap was sustained. (¶ 24)
- Neither the carrier’s challenge to liability and quantum nor the exporter’s enhancement claim warranted interference with the award. (¶ 19–25)
Result
Both civil appeals dismissed. NCDRC award upheld, including the Rs.20 lakh compensation limit with interest and the additional award recorded in its order. Parties to bear their own costs; pending applications disposed of.