New Delhi, June 23 (IANS) Providing relief to the British Airways (BA), the Supreme Court Wednesday said the airline could not be held guilty of indulging in unfair trade practices over alleged delay in delivery of cargo sent from India to Paraguay.
The court was hearing a matter related to alleged loss of a cargo consignment and delay in the delivery of another sent from India to Paraguay.
The apex court set aside the verdict of the Monopolies and Restrictive Trade Practice Commission (MRTPC) in which the BA was held guilty of indulging in unfair trade practice.
The court said that the MRTPC did not consider whether the BA adopted unfair trade practice to promote its services. ‘Unless there is a finding on this issue, British Airways can’t be held guilty of indulging in unfair trade practice,’ the apex court said.
The court said after considering these ‘flaws in the judgment (of the MRTPC) and consideration of all relevant aspects in the right perspective, we are satisfied that the impugned order can’t be sustained’.
The MRTPC had directed BA to pay complainant, Absolute Aromatics Ltd., a compensation of $110,088 for the lost cargo and the freight charges of around $21,200.
The commission had said that BA would pay an interest of 6 percent per annum on both the payments from the date the company made the application before the commission till the date of payment.
The vacation bench of the Supreme Court headed by Justice R.M. Lodha and comprising Justice A.K. Patnaik asked the petitioner BA which had challenged the MRTPC’s order before it to challenge the same before the National Consumer Disputes Redressal Commission (NCDRC).
The apex court said that NCDRC would hear the matter afresh on factual and legal grounds on the basis of the pleadings and the evidence led by the parties.
The court said the compensation and freight charges that were awarded by the MRTPC and currently deposited by BA with the apex court registry and secured under Fixed Deposit Receipt (FDR) would be given to the parties as per the outcome of the case before the NCDRC.
However, if the NCDRC was not able to decide the matter before Nov 10, 2010, the date when the FDR would mature, then the same would be reimbursed to BA along with the interest.
In the instant case, Absolute Aromatics Ltd. booked two consignments for Asuncion in Paraguay via Sao Paulo in Brazil. However, one consignment was allegedly lost and the delivery of the other was delayed.
The company contended before the MRTPC that BA had promised fast and quality delivery of the cargo but failed to do so and this amounted to unfair trade practice.
