The Hindu : New Delhi News : Italian airline held guilty of being negligent in service

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Italian airline held guilty of being negligent in service

Staff Reporter

Asked to pay a fine of 1.25 lakh dollars
Cost of Rs.20,000 also imposed

NEW DELHI: The National Consumer Disputes Redress Commission has imposed a fine of 1.25 lakh dollars on Alitalia Airlines of Italy, holding it guilty of being “grossly negligent in service” in releasing cargo of a Delhi-based exporter, Toy N Toy International, way back in 1998.

“The airline is directed to pay in rupees a sum equivalent to 1.25 lakh dollars at the exchange rate prevailing today as provided by Section 6 of the Carriage by Air Act, 1972, with interest at the rate of 12 pre cent per annum from February 13, 1998, the date on which the delivery of cargo was given till realisation,” said a two-member Bench of the Commission comprising Justice (Retd.) K. S. Gupta and Rajyalakshmi Rao in their 11-page judgment.

The judgment came on a complaint by the company engaged in the business of export of garments.

In its complaint, Toy N Toy International submitted that it had delivered to the airline a consignment of shirts and bermudas for being carried to Sao Paulo in Brazil and the freight was paid. The cargo was meant for Affari Italia. The complainant through a branch of the Canara Bank here had forwarded the documents to Banco Portugues Do Atlantico for collecting the payment for the cargo from the consignee. On being asked about the delivery of the consignment by the complainant, the airline said it had been delivered. However, Banco Portugues Do Atlantico returned the entire set of documents to Canara Bank because the consignee did not make any payment for the cargo.

The complainant submitted before the Commission that the airline had unauthorisedly delivered the cargo without verifying the delivery order. It accused the airline of negligence and sought refund from it of 113,600 dollars for the loss of consignment, Rs. 10,55,010 on account of freight charges, Rs. 6,91,356 for duty drawback along with interest and 100,000 dollars towards the loss of business and cost. “The forgery of the delivery order is writ large as it is of the date on which even the cargo was not booked,” the Commission said. The Commission also imposed a cost of Rs.20,000 on the airline.

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