On Monday, the Supreme Court of India dismissed an appeal filed by Air India against the order of the National Consumer Dispute Redressal Commission (NCDRC). The NCDRC had previously upheld the orders of the State Consumer Commission and District Consumer Forum, directing the airline to pay a compensation of Rs 2.03 lakh to a passenger who lost his luggage during travel.

The division bench comprising of Justice Hima Kohli and Justice Rajesh Bindal, while delivering the verdict, stated, "In the peculiar facts and circumstances of the present case, we are not inclined to interfere with the order impugned herein under Article 136 of the Constitution of India."

The dispute dates back to a complaint filed by Mr. Tushar Kothari, who had lost one of his bags while traveling from Nagpur to Goa on an Air India flight. The airline examined 16 bags belonging to Mr. Kothari and his family and issued boarding passes accordingly. However, upon reaching their destination, it was discovered that one bag had been misplaced during the journey, and the airline could not locate it despite assurances.

Air India offered a compensation of Rs 3,600, calculated at the rate of Rs. 450 per kg for the missing bag. However, Mr. Kothari sought compensation of approximately Rs 2 lakhs, presenting bills worth Rs 2.03 lakh for the articles purchased for a wedding ceremony stored in the missing bag. He also claimed additional compensation for mental agony and litigation expenses incurred.

The district forum found Air India liable for deficiency in service and directed the airline to pay compensation. This decision was later upheld by the state forum and the national forum, NCDRC. On 7th February 2023, the NCDRC dismissed Air India's appeal and directed the airline to pay the balance 50% of the compensation to Mr. Kothari.

Air India had argued that, as per the provisions of Citizens Charter/Contract of Carriage Rule 1972 on Domestic Travel & Bureau of Civil Aviation Security (Ministry of Civil Aviation), Mr. Kothari was required to declare the value of the articles in the misplaced bag.

However, the Supreme Court, in its recent ruling, refused to interfere with the NCDRC's order, effectively upholding the directive for Air India to compensate Mr. Tushar Kothari with the total amount of Rs 2.03 lakh.

The case, titled "Air India Ltd. & Anr. V. Tushar Kothari," was a Special Leave Petition (Civil) with Diary No(S). 23377/2023. 

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