KLM to pay Rs 1.16-crore compensation

In a decision against an international airlines, National Consumer Commission directed KLM Royal Dutch Airlines to pay Rs 1.16 crore compensation to three gold jewellery exporters whose consignments were released by airlines officials on the basis of forged documents in UK.

Upholding the airline guilty of deficiency in service for delivering goods without verification of the required documents, Commission president Justice M B Shah and member Rajyalakshmi Rao said, "In case of loss of goods or delivery to wrong person or delay in the delivery, presumption would be of negligence on the part of carrier, as per the settled law." The release of consignment by the carrier or its agent was totally unjustified. It was done without there being any original document, including the bank release note, and without the knowledge or consent of the consignee (National Westminister Bank) and that too on the basis of an alleged fax letter without verification from the bank, the commission said.A litigation cost of Rs 3 lakh 1 lakh in each case was slapped on KLM Airlines. The commission also imposed a fine of Rs 12 lakh (4 lakh each in the three cases) on the National Westminister Bank, UK, for deficiency in service and directed it to deposit the penalty in consumer legal aid account of the National Consumer Disputes Redressal Commission.

"The consignee bank has not been able to produce either with its pleadings or evidence, the original bank release documents and adverse inference should be drawn against the bank," the commission said. The complainants were Pearl Syntex from Ashok Vihar, Yellow Metal Inc from Noida and P P Jewellers from Karol Bagh, who lost consignments worth Rs 19.92 lakh, Rs 46.96 lakh and Rs 49.57 lakh, respectively. The consignments were sent to F M Mir Jewellers in the UK. Separate criminal cases were registered in the UK for fraudulently taking delivery of goods and four persons were convicted.

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