Delhi High Court directs Ethiopian Airlines to release Rs 2,75,000 as compensation for missing baggage of NRI passenger

A complaint was filed by an NRI passenger who booked a business-class ticket with Ethiopian Airlines for a non-stop flight from Nigeria to India and upon landing in Delhi, he discovered that one of his bags, containing important documents and valuables, was missing.

Delhi High Court

Delhi High Court: An appeal was filed by Ethiopian Airlines (appellants) challenging the dismissal order passed by National Consumer Disputes Redressal Commission (NCDRC) intended to challenge an order by the State Consumer Disputes Redressal Commission, Delhi, which had directed the airline to compensate Mr. Nitin Dewan ₹5.50 lakh for lost baggage citing a delay in filing attributed to the relocation of the airline’s counsel’s office. Manoj Jain, J., held that in the interest of justice and to expedite the resolution, 50% of the decretal amount along with accrued interest be awarded to the respondent as full satisfaction of his claim, while the remaining balance be refunded to Ethiopian Airlines, thereby concluding the dispute amicably.

A complaint was filed by a Non-Resident Indian (NRI) (complainant), against Ethiopian Airlines for alleged negligence regarding his lost baggage during a business-class flight from Nigeria to India on 02-06-2024. Upon arrival in Delhi, the complainant discovered that one of his bags containing important documents and other valuable items was missing. Despite lodging a complaint with the airline, he received no satisfactory response, prompting him to escalate the matter. Ethiopian Airlines initially offered a compensatory amount; however, the complainant found this insufficient and subsequently filed a complaint with the State Consumer Disputes Redressal Commission, Delhi.

The State Consumer Disputes Redressal Commission ruled in the complainant’s favor, finding Ethiopian Airlines negligent and ordered the airline to compensate with a sum of ₹5.50 lakhs, to be paid within 45 days. Ethiopian Airlines, dissatisfied with this order, filed an appeal before the National Consumer Disputes Redressal Commission (NCDRC) in 2019, seven years after the incident. However, the airline encountered a procedural delay exceeding 50 days in filing this appeal, attributed to logistical issues involving the relocation of their Counsel’s office. While the NCDRC initially stayed the State Commission’s order and directed the airline to deposit the entire decretal amount, it later dismissed the appeal solely on the grounds of this delay, effectively upholding the State Commission’s findings.

In response, Ethiopian Airlines brought the matter before this Court, where the Counsel for complainant acknowledged the prolonged delay in resolution since the incident in 2012. In an effort to reach an amicable solution, counsel proposed settling for half of the decretal amount as a final resolution without further claims, a proposal accepted by the counsel for Ethiopian Airlines.

Thus, the Court disposed of the petition accordingly, directing the release of ₹2,75,000 (half of the original compensation amount) along with accrued interest to the complainant as a final settlement. The remaining amount, along with proportional interest, was ordered to be returned to Ethiopian Airlines.

[Ethiopian Airlines v. Nitin Dewan, 2024 SCC OnLine Del 7365, decided on 21-10-2024]


Advocates who appeared in this case:

Mr. Anil K. Kher, Senior Advocate with Mr. Kunal Kher and Mr. Ankur Gosain, Advocates for petitioner

Mr. Rajat Bhalla, Advocate for respondent

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