Indian Airlines fined Rs 2.97 lakh for negligence

New Delhi: Indian Airlines (now Air India) has landed in trouble with the State Consumer Commission asking it to pay nearly Rs 2.97 lakh to a private company, which suffered losses due to its negligence in delivering its goods to a buyer in Malaysia.
"The airlines is guilty of deficiency in service in not delivering the consignment to May Bank (Malaysia) instead delivered to the notified parties (buyer) and therefore the company could not receive the proceeds of the consignments," Commission President Justice, J D Kapoor, said, awarding a compensation of Rs 2.72 lakh and a litigation cost of Rs 25,000.
The Commission's order came on a plea filed by the company Space Overseas Private Ltd, which alleged that the goods were delivered to the buyer bypassing the proper route through May Bank and without getting the bank documents, known as letter of credit.
The documents were supposed to be handed over to the complainant by the airlines so that it could use it to collect the proceeds of its consignment from a bank in India.
"The carrier had to deposit the goods with the May Bank and takeover the original documents and handover it to the consignor (company) so that the company goes to collect the money from India," the Commission said.
18/10/08 PTI/Sify

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Categories: Air India Domestic Oct 2008, Foreign Oct 2008, NACIL Oct 2008