NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

                                                                                                NEW DELHI

 

 

ORIGINAL PETITION  NO.  80  OF  1997

 

 

Dr. Arun Jain                                                                                    Complainant

 

                                    Vs.

 

Thai Airways International Ltd.                                                         Opposite Party

 

 

BEFORE:

                        HON’BLE MR. JUSTICE D.P. WADHWA,

                                                                          PRESIDENT

                        HON’BLE MR. JUSTICE J.K. MEHRA, MEMBER.

                        MRS. RAJYALAKSHMI RAO, MEMBER.

                        MR. B.K. TAIMNI, MEMBER.

 

 

Travel - International Airlines- denied boarding compensation (DBC) - principle as to payment of compensation.

 

For the  complainant                 :   Mr. S.C. Singhal, Advocate.

 

For the opposite party              :   Ms. Shipra Mathur, Advocate

                                                    For Mr. Lalit Bhasin, Advocate.

 


                                                O R D E R

 

 

DATED THE   21st    March,  2002.

 

JUSTICE D.P. WADHWA, J.(PRESIDENT)

 

 

 

                        Complainant was denied boarding by opposite party-Airlines though he was holding a valid confirmed ticket.  The case pertains   to what is known   as ‘Denied Boarding Compensation’ (DBC).   There is no law in our country which prescribes   amount of compensation in the case of DBC  and it would depend  on the contract between the passenger and the Airlines.   In case of there being   no such contract passenger will be  awarded compensation under the Law of  Torts.  Consumer Courts in our country,  even Courts  in England,  have in consumer disputes awarded  damages for mental distress, upset, disappointment and injured feelings.   But we have to approach this area cautiously. 

                        During the course of argument our  attention was drawn to newspaper clipping  of February 12, 2001  of Hindustan Times, New Delhi edition  on the subject how to tackle Airlines ‘off loading’.  It mentions that  Air India, national carrier of this country, gives US $ 300 to passengers offloaded  from US- bound flights.  Lufthansa offers vouchers worth Euro 600  as compensation for offloaded passengers which can be  redeemed the next time the  passenger flies and in case the passenger demands cash, he gets only half of this the amount.  British Airways also offers a cash compensation  to  offloaded passengers apart from taking full care of them till they board  the next available flight.  Some Airlines do not offer any compensation at all for offloaded passengers.

                        European Union Council Regulation (EEC)   No.295/ of 4th February, 1991 establishes the  common rules  for  denied boarding compensation system in  scheduled air transport.   It may not be convenient to set out all the Aticles of regulations but we may refer to  Articles 4   and 6 which read as under:

                        “Article 4

1.         In the event of boarding being denied, a passenger shall have the choice between:

 

.           reimbursement  without penalty of the cost of the ticket for the part  of the journey not made, or

.           re-routing to his final destination at the earliest opportunity, or’

.           re-routing  at the later date at the passenger’s convenience.

 

2.         Irrespective of the passenger’s choice mentioned in the case referred to in paragraph 1, the air carrier shall, immediately after boarding has been denied, pay minimum compensation, without prejudice to paragraphs 3 and 4, amounting to:

 

.           ECU 150 for flights of up to 3500 km,

.           ECU 300 for flights of more than 3500 km,

.           having regard to the final destination specified in the   ticket.

 

3.         Where the air carrier offers re-routing to the final destination on an alternative flight, the arrival time of which does not exceed the scheduled arrival time  of  the flight  originally booked by two hours for flights of up to 3500 km, and by four hours for flights of more than 3500 km,  the compensation provided for in paragraph 2 above may be reduced by 50%.

 

4.         The amounts of compensation  need not exceed the price of the ticket in respect of the final destinations.

 

5.         The compensation shall be  paid in cash or, in agreement with the passenger, in travel vouchers and/or other services.

 

6.         If, on an overbooked flight, a passenger agrees to be placed in a class lower than that for  which a ticket has been purchased, he shall be entitled to reimbursement of the difference in price.

 

7.         The distances  given in paragraphs 2 and 3  shall be measured by the great circle track  method (great circular route).

 

Article 6:

 

1.         Apart from the minimum compensation amounts set out in Article 4, the air carrier  shall offer free of charge to passengers who are denied  boarding:

 

a.         the expenses for a telephone call and/or telex/fax message to the point of destination;

 

b.         meals and refreshments in a reasonable relation to the waiting time;

 

c.         hotel accommodation in cases where an additional stay of one or more nights is necessary.

 

2.         When a town, city or region is served by several airports and an air carrier offers a passenger, who has been denied boarding, a flight to an airport other than the destination airport that the passenger had booked, the cost of travelling between the alternative airports  or to an alternative close-by destination, agreed with the passengers, shall be borne by the air carrier.”

 

                        Earlier to the European Union Regulations provisions  for DBC also existed in the United States of America in the Code of Federal Regulations (Title 14 – Aeronautics  and Space).  These Rules  even provide  for   boarding priority rules and where request is made by the Airlines  to ‘volunteers’  for denied boarding. As to who is   volunteer has also been defined.  Rules prescribes how much amount is to be paid to the volunteer and also to those passengers who are denied  boardings involuntarily.   (The regulations  of the European  Union  and the rules of the United States  can be accessed through their respective websites.)  

                        It would appear that the Central Government is also contemplating to assume power to prescribe the law of  air carriers.  It is submitted that the Civil Aviation Act, 2000  of which draft  has been put on the internet, it is Chapter XI  which deals with law of carriers.   Section 103 in the proposed draft legislation  concerns denied boarding compensation (DBC) and we may set out the same:

“103.  Compensation schemes for passengers relating to grievances like denied boarding etc.

 

(1)        The Central Government may formulate schemes for payment  of suitable compensation by carriers to passengers who are denied boarding, in specified  circumstances, on flights from India to any point outside India, or on flights within  India, for which they have confirmed reservations, or for any other kinds of passenger grievances which in the opinion of the Central Government have assumed significant level of public dissatisfaction.

 

(2)        The  compensation schemes under sub-section (1) shall be formulated  after holding   consultations with the carriers  and shall be notified in the  Official Gazettee before implementation.

 

 

(3)        Any compensation scheme notified by the Central Government in the Official Gazette under sub-section (2)  shall be binding on the carriers, and any contravention thereof  shall be punishable with  fine which may extend to one lakh rupees.

 

                        Complainant in the present seeks damages for Rs. US $ 1,00,000/-  equivalent to Rs.35.00 lakhs on account of  denied seat in the aircraft of the opposite party-Airlines though holding a valid  confirmed ticket from  Delhi to  Bangkok.   This complaint was filed in March, 1997.  Complainant is a holder of degree of  Bachelor of Medicine and  Bachelor of Surgery (MBBS)  from Agra University, having passed his examination  in 1993.  For his further attainments in medicines  and also for practising  in the United States of America,  complainant was required to take examination prescribed by the United States called  United States  Medical Licensing Examination which is conducted  in two Parts I & II.   Examination  is held  in Bangkok in Thailand.   Complainant cleared his Part-I examination and he had to go to Bangkok to take  Part-II examination on 5/6th March, 1996.   For this purpose, complainant  wanted to reach Bangkok on the early   morning of 3.3.1996.   He was having a confirmed  ticket for travel to Bangkok by the Thai Airlines of the opposite party leaving on the morning  of 3.3.1996 at 2.15 AM.    Complainant says that  he reached   Indira Gandhi International Airport  much before the reporting time.   At the counter of the  airlines he was  given baggage identification ticket and was also charged US $ 15  as  Passenger  Service Charges at the Airport.  However, complainant was not issued the boarding card as he was told that the flight was over booked.  The ground  staff present there expressed their helplessness .  When the  complainant told them of his urgent need to reach  Bangkok he was accommodated  in a hotel in Delhi by the Airlines.   His ticket was endorsed to  that of Indian Airlines  leaving for Bangkok  via Calcutta.   Complainant did go to Bangkok by Indian Airlines flight on 3.3.1996 itself but his  complaint is that he reached 12 hours late than the time  he wanted  to reach there to prepare for the  examination.  Complainant says the  result was  that when he reached Bangkok his hotel booking  had been cancelled and  with great difficult he was able to get hotel accommodation.  All this put a great pressure on the mind of the complainant with the result he could not  clear Part-II examination though marginally.  He, therefore, could not go  to United States to practice  there and earn more money.

                        On 7.8.96 complainant served a notice  on the Airlines  demanding  Rs.35.00 lakhs as compensation for  deficiency in service on its part in not allowing him to take the flight in spite of his holding  a valid confirmed ticket and his consequential losses.  This notice was replied by the Airlines who denied the allegations and said that the complainant did not reach the airport at the scheduled time of departure  and stated that since the procedure of checking in is protracted, the issue of  boarding pass is closed about 45 minutes before the schedule time of departure.  Airlines said that complainant reported very late and meanwhile all the passengers had been checked in and by that time the flight was full.  Yet  Airlines  helped him  and arranged to send him by Indian Airlines via Calcutta and at the same time providing him hotel accommodation for the night.  Airlines says that all this service was rendered  ex-gratia and out of goodwill.     Since the complainant reached   the airport late he was only entitled to the next flight  of the  Airlines.

                        In the affidavit filed by the complainant in support of his complaint, he  stated  that  he reached the airport at 9.30 PM on 2.3.95 and even at that time people had come to know that flight was overbooked and they were running here and there.  Complainant referred to the baggage identification ticket issued  to him at the airport and also charging of US $ 15 as  Passengers Service Charges at the airport  to substantiate  his contention that he had reached on time.  He said that if he was late how could  the Airlines issue him   baggage identification ticket as well as charged him US $ 15 towards Passenger Service Charges.

                        Written version of the Airlines is supported  by the affidavit of its Manager Liaison & Customer Services.  It had been stated  that the complainant reached late and by that time checked in counter had been closed.  It is submitted  that the passengers are required to report within the stipulated time which is three hours so that there is sufficient time to complete necessary pre-flight formalities and also so that in case of last minute  cancellation or in case of any of the passengers with confirmed tickets are unable to take the flight due to ‘No Show’ or any other reason whatsoever the Airlines   or for that matter, any other   Airlines is able to accommodate wait listed  passengers.   In the present case, it is stated that six passengers  who were in the waiting list  were accommodated as passengers  with confirmed tickets had not checked in within the time frame.   In support of its contention, Airlines had filed its passengers manifest which shows that  324 passengers boarded the plane  , flight TG-913 dated 3.3.96 and out of that six  were on the waiting list.  

                        It is difficult to accept the stand of the complainant that he had reached the  airport at 9.30 PM almost five hours before the departure time and yet  he could not get into the aircraft and even at that time he had come to know  that the flight was overbooked.   This contention of the complainant defies logic.  Not only that airlines  had pointed out that baggage identification ticket  referred to by the complainant  was not of the opposite party-Airlines but was of the Singapore Airlines and that this  pertained to the baggage identification ticket issued to the complainant at the Singapore airport for the flight from Singapore to Delhi.    It was also pointed out  that the amount of. US $ 15  as Passenger Service Charges at the Airport  were paid at Singapore  airport and not at Delhi.  When we see the air ticket of the complainant it is Delhi-Bangkok-Singpore-Delhi.  Obviously  complainant  on his way  back  took  Singapore Airlines flight from Singapore to Delhi.  We ourselves have seen the photo copy of the baggage identification ticket and the receipt of payment of US $  15  filed by the complainant and the stand of the  airlines appears to be correct.  It is difficult to understand why  complainant should have made such an attempt to mislead  the National Commission.  Written version of the Airlines was  filed as far back in July, 1997 pointing out that baggage  identification ticket was of the Singapore Airlines and the US $ 15  were paid  as   Passenger Service Charges at the Singapore  airport.   Even in the affidavit filed by the Airlines  it was so asserted.   Yet the complainant took no steps to contradict this stand of the Airlines which shows that the complainant is not truthful both as regards his reaching the airport  and his having been issued  the baggage identification ticket and his paying  US $ 15  as Passenger Services Charges.

                        Preliminary objection was also raised by the   Airlines that complainant had by-passed the  District Forum and even the State Commission  by making a claim of Rs.35.00 lakhs which is out of all proportion to any alleged deficiency in service on the part of Airlines.  In the circumstances of the case we agree with the Airlines  that to get jurisdiction of the National Commission Complainant  inflated his claim to Rs.35.00 lakhs as compensation which on the face of it  is  irrational if not ludicrous.   We disapprove this type of  practice on the part  of any consumer.   Rather such type of complaint making preposterous  claims should be thrown out at the threshold unless  complainant is prepared to correct the mistake and makes a claim which is reasonable and realistic.

                        Claim  of the complainant that had he reached Bangkok twelve hours  earlier he would have passed Part-II examination and then would  have earned in terms of US dollars in the United States is too remote to take into consideration.  This is on no account  can be  termed  as consequential losses on the alleged deficiency in service on the part of  opposite party – Airlines.   Had the case of the complainant true  we might have considered  his claim for compensation under the  well-known  international term ‘Denied Boarding Compensation’ (DBC).   However, we hold that there was no deficiency in service on the part of the Airlines.   There is no merit in this complaint.   It is dismissed with cost of Rs.5000/-.

 

 

………………………………………J

(JUSTICE D.P. WADHWA)

                      PRESIDENT

 

 

………………………………………J

(J.K. MEHRA)

     MEMBER

 

 

………………………………………

(RAJYALAKSHMI RAO)

                       MEMBER

 

 

………………………………………

(B.K. TAIMNI)

                       MEMBER