NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

                                                                                                NEW DELHI

 

 

FIRST APPEAL NO. 184  OF  2001

(From the order dated  15.5.2001 in  Complaint Case No.112/95

of the State Commission Delhi)

 

 

U.S. Awasthy                                                                                 Appellant

 

            Vs.

 

M/s. Gulf Air & Anr.                                                                       Respondents

 

 

BEFORE:

 

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

                                                                          PRESIDENT

                        MRS. RAJYALAKSHMI RAO, MEMBER.

                        MR. B.K. TAIMNI, MEMBER.

                        HON’BLE MR. JUSTICE K.S. GUPTA, MEMBER

                       

 

Carriage by Air  Act -  incident giving rise to filing  of a complaint  occurred outside the country – non -provision  of a reclining  seat in business class in the aircraft – case if covered by Article 17  of Schedule-II to the Carriage by Air Act, 1972. – judgments of House of Lords  and US  Supreme Court  considered – raising of substantial  questions of international law – amicus curiae appointed.

 

For the appellant                   :           Mr. Thomas Joseph, Advocate

 

For the respondent               :           Mr. M. Wadhwani, ADvocate

                                   

 

O R D E R

 

 

DATED THE       23rd   JANUARY, 2003.

 

 

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

 

                        It is the complainant who is in appeal before us.  His claim for damages against the respondents-Gulf Air, an international carrier  was dismissed by the State Commission.  His complaint was  that  he was a  business class passenger and in the flight of  Gulf Air between the Sector Bahrain – Istanbul he was given a seat which was fixed and  was not  a reclinable on account of which  he suffered great inconvenience and discomfort for  6-1/2 hours  journey.  He had not bargained for such a treatment of an international airlines when he had purchased a business class ticket which was  much higher in value   than an economy class ticket.  Complainant, therefore, claimed  Rs.5.00 lakhs as damages for the  agony caused to him.  In fact, the ticket was for travel from  ‘Delhi-Doha-Bahrain-Istanbul-Dubai-Delhi’.

                        There is no dispute  about the purchase of business class air ticket by the complainant  and the

seat which was provided to him by the airlines during the journey from Bahrain to Istanbul was a fixed seat ant 

not a  reclinable one.  When the complainant found the seat to be fixed he complained to the staff of the airlines

for change of the seat.  It was not agreed to as he was told that the aircraft was full and alternate seat was

not available.

                        In its reply airlines stated  that there  were 16 first class, 12 business class and  95 economy

class seats and all the seats  were occupied.  Ticket issued to the complainant was  subject to various

conditions and condition No. 2 was put forward to  deny the claim  of the complainant.   This condition No.2

reads as under.

“Carrier does not undertake to provide an particular seat in the aircraft.   The passenger agrees to accept any seat that may be allotted to him on the flight  in the class of service for which his ticket has been issued”.

 

                        It was stated that  otherwise seat  given to the complainant was wide,  well cushioned  and was comfortable to sit and business  class facilities were provided.  Claim of the complainant was, therefore, denied.

                        State  Commission was impressed  by the argument of the airlines that the seat was near

 the emergency  exit door of the aircraft and  in case of emergency one can  jump of these seats to

use the  emergency exit.   State Commission was of the view  that the aforesaid condition of the carrier was

binding on all the passengers and there was no violation of the terms and conditions by the airlines and since

there was no  alternative reclining seat  was available    complainant had no  case.  We are afraid

State Commission has missed the core issue.  For a passenger condition No.2 would mean that all the seats

are of same type. A business class ticket is of  much higher value than the economy class.  It is not disputed

that in business class there are  reclining chairs  and  as a matter of fact even economy class seats are

also reclining.   As a matter of fact when the seat was allotted  to the complainant  he should have been told

at that time that  it would be a fixed seat and not  reclining one.  Airlines cannot treat business class

passengers differently than other business class passengers and they all have to be provided  same type of

seats  and business class facilities.  Condition  No.2 which has been quoted by the airlines  in its defence was not applicable  to the  facts of the present case and has no meaning  unless of course the business class passenger is  informed before hand that no other reclining  seat  is available.  As to what is the necessity of fixed chair   is

of no concern to a passenger who had paid for business class  fare and  expect a  reclining chair  with of

course  facilities like other business class passengers.   It is not the case of the airlines that when a particular

seat  was allotted to the complainant he was told that it was a fixed seat for him to accept or not  to

accept or choose  a different flight for the  journey.    Could it be that  a fare charged for reclining seat

would be different than  that of fixed seat which, without any argument would certainly mean discomfort  for a

journey of 6-1/2 hours.

                        Mr. Wadhwani learned counsel for the  airlines  said that complaint itself was not maintainable.

  In support of his plea he  raised the following questions for consideration:

(i)                 Claim was not covered under Article 17* of Schedule-II to the Carriage by Air Act, 1972 which

            Act  incorporates Warsaw Convention as amended by the Hague Protocol and further that

            cases covered by Article 17 can only be brought  subject to the condition and limitations  set

            out in Article 24*  of the Convention.

(ii)        This Commission has no extra  territorial jurisdiction   to try the present case.

(ii)               No compensation could be awarded for  acute misery and discomfort in absence of the

            complainant having  suffered  any bodily injury.

(iii)             Complainant is not entitled  to any compensation  in  absence of any economic loss suffered by

            him. It would appear that none of these points  were raised before the  State Commission as

            they do not find mention in the impugned judgment of the State Commission. 

                        In support of his  submission in regard to Article 17 aforesaid  Mr. Wadhwani referred to

various judgment of foreign Courts.   It is not necessary for us  to refer to all these decisions

except to note a few of them.

_____________________________________________________________

 

*Article 17: The carrier is liable for damage sustained in the event of the  death or wounding of a passenger or any other bodily injury suffered by a passenger, if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

 

Article 24:        (1)        In the cases covered by  Articles 18* and 19*  any action for  damages, however, founded, can only be brought subject to the conditions and limits set out in these rules.

 

(2)        In the cases covered by Article 17 the provisions of the preceding sub paragraph also apply, without prejudice to the questions as to who are the persons who have the right to bring suit and what are their respective rights.

 

 

            In Eastern Airlines, Inc.  v. Floyd et al.  – 23 Aviation Law Reports  17,367, Supreme Court of United

States was considering  Article 17 of the Warsaw Convention.   In this case  on May 5,  1983 an Eastern

Airlines flight departed from Miami, bound for the Bahamas.   Shortly after takeoff, one of the plane’s 

three jet engines lost oil pressure.   The flight crew shut down the failing engine and turned the plane around to

return to Miami.   Soon thereafter, the second and third engines failed due to loss of oil pressure.   The plane 

losing  altitude  rapidly,   and the passengers were informed that the plane would be ditched in the Atlantic

Ocean.  Fortunately, after a period of descending flight without power, the crew managed to restart an engine

and land the plane safely at Miami International Airport.  Respondents, a group of passengers on the  flight 

brought  separate complaints against petitioner, Eastern Airlines, Inc. (Eastern), each claiming damages

solely for mental  distress arising out of the incident.   The District Court  entertained each complaint

in a consolidated proceeding.  Eastern conceded that ___________________________________________________________

 

 

Article 18: (1)   The carrier is liable for damage sustained  in the event of the destruction or loss of, or of damage to,  any  registered baggage or any cargo,  if the  occurrence which caused the damage so sustained took place during the  carriage by air

 

(2)        The carriage by air within the meaning of the preceding paragraph comprises the period during which the baggage or cargo is in charge of the carrier, whether in an aerodrome or on board an aircraft, or, in the case of landing outside an aerodrome, in any place whatsoever.

 

(3)        The period of the  carriage by air does not extend to any carriage by land, by sea or by river performed outside an aerodrome.  If, however, such a carriage takes place in the performance of a contract for carriage by air, for the purpose  of  loading, delivery or transhipment, any  damage is presumed, subject to proof to the contrary, to have  been result of an event which took place during the carriage by air.

 

 

Article 19:  The carrier is liable  for damage occasioned by delay in the carriage by air of passengers, baggage or cargo.

 

 

the engine failure and subsequent preparations for ditching the plane amounted to  an accident’ under Article

17 of the Convention but argued that Article 17 also  makes physical injury a condition of liability.    The

District Court concluded that mental anguish was not alone compensable under  Article 17.  The Court of

Appeals for the Eleventh Circuit reversed, holding that the phrase ‘lesion corporelle’( bodily injury) in the

authentic French text of Article 17  encompasses purely emotional distress.    After examining the French

legal meaning of the term ‘lesion corporelle’  the concurrent  and subsequent  history of the Warsaw convention 

and the cases interpreting Article 17  Supreme Court of United States held:

“We conclude that an air carrier cannot be held liable under Article 17 when an accident has not caused a passenger to suffer  death, physical injury, or physical manifestation of injury.   Although Article 17  renders air carriers liable for ‘damage sustained in the event of’ (‘dommage survenu en cas de’)  such injuries, see 49 Stat. 3005, 3018, we express no view as to whether passengers can recover for mental injuries that are accompanied by physical injuries.   That issue is not presented here because respondents do not allege physical injury or physical manifestation of  injury.  See App.3-9.

 

Eastern urges us to hold that, the Warsaw Convention provides  the exclusive cause of  action for injuries sustained during international air transportation.   The Court of Appeals did not address this question, and we did not grant certiorari to consider it.  We therefore decline to reach it here”.

 

                        It would be seen that the Supreme Court of United States did not go into the question if

Warsaw Convention provided exclusive cause of action for  injuries sustained during  international transportation

                        House of Lords in the case of  in the case of Sidhu & Ors. vs. British Airways – (1997)

All ER 193 struck a  different note.  We take the facts of the case and statement of law from the head note 

which we quote:

“The appellants (the three plaintiffs and the pursuer) were  passengers on a scheduled international

flight operated by the respondent airline (BA) which left London on 1 August, 1990 for Malaysia via

Kuwait.  On 2nd August the aircraft landed in Kuwait for refuelling several hours after Iraqi forces had 

begun to invade Kuwait at the commencement of the Gulf War.   While the passengers were in the

airport terminal, the airport was attacked by  Iraqi forces who took them prisoner and later removed

them to Baghdad.   The appellants were released several weeks later and returned to the United

Kingdom.  On 30 July 1993, which  was outside the two-year  time limit  allowed by art 29 of the

Warsaw Convention, as set out in Sch 1 to the Carriage by Air Act 1961, for  bringing an  action for

damages but inside the three year time limit prescribed for common law negligence, the plaintiffs 

brought an action against BA in the country court claiming damages for personal injury alleging

that by reason of  BA’s negligence in landing the aircraft in Kuwait after hostilities had started they

had suffered physical and psychological   damage and they also claimed for lost baggage.   The

judge dismissed  their claim on the ground that  the plaintiffs’ sole  remedy was under the convention and

that any rights they might have had against BA were  extinguished by virtue of art  29 of the convention

since they had not issued proceedings  within the two-year time  limit.  The  Court of Appeal  upheld

 the decision and the plaintiffs appealed to the House of Lords.   The pursuer brought her action in the

Court of Session in Scotland claiming, inter alia damages at common law for breach of  an implied

condition of the contract that BA would take reasonable care  for her safety.   The Lord Ordinary held

that the convention excluded recourse to any common law  remedy and dismissed her action.  The

pursuer  reclaimed but the Inner House of the Court of Session dismissed her reclaiming motion

and she appealed to the House of Lords.

 

Held:   Having regard to the objects  and structure  of the convention, which  was to achieve a

uniform international code in those areas with which it dealt, including the liability of the international
carrier, which could be applied by all the High   Contracting Parties without reference to the rules of their

own domestic law, Sch. I provided the exclusive cause of action and sole remedy for a passenger

who claimed for loss, injury and damage sustained in the course of, or arising out of, international

carriage by air notwithstanding that  that might leave claimants without a remedy.   Accordingly, where

the convention did not provide 193  a remedy, no remedy was available.  The appeals would therefore

be dismissed”.

 

            In this case House of Lords  referred to other judgments of other jurisdictions.  In  an unreported

judgement in the case of Ismail  A. Mohamed v British  Airways plc the incident was the same as

was before the House of  Lords  in the case of  Sidhu  & Ors.  v. British Airways. In this case the

passengers were all French  nationals and they claimed damages from British Airways for

 the  consequences of the same event.  The Tribunal de Grande Instance de Paris reached the view 

on the facts that the damages claimed were not linked with disembarkation  operations as such, and

that they could not be linked to 211 those  risks inherent  in  aerial  navigation as provided by the

Warsaw Convention.   In these circumstances the court felt free to determine  the law applicable, on the

view that the consequential damages claimed were not covered by the field of  application of the

convention.   French law was applied, and the plaintiffs were found entitled to damages unrestricted

by the limits set by art 22 of the convention.  House of Lords in the case before it did not follow the

judgement of the French Court as it was of the view  that the  case in the French Court   did  not a

close  analysis of the   Warsaw Convention  nor  was there any reference to previous  decision in the

issue  in the French Court or elsewhere.  It is also noticed that an appeal was pending against the

order of the Tribunal.  There was another case of Gatewhite  Ltd. v. Iberia Lineas Aereas de

Espana SA  [1989] 1 All ER 944 ( [1990] 1 QB 326)  a view was taken that in  absence of express

provision in the  Convention excluding the owner’s right  of action,  the owner of goods damaged or lost

by a  carrier was entitled to sue in his own name in accordance with the lex fori and accordingly, that

 the plaintiffs were entitled to damages to be assessed at common law.  It is stated that coming to

 this conclusion the English Court  was attracted by the reasoning in a case of  New Zealand  , it

being Tasman Pulp  and Paper Co. Ltd. v. Brambles J B O’Loghlen Ltd. [1918] 2 NZLR 225.

                        House of Lords, however, did not think it appropriate to  the reasoning  in Gatewhite  case and

left the matter at that. Shidu’s case was referred  by the Supreme Court of United States in the case of 

El Al Israel Airlines, Ltd. v. Tsuiyuan Tseng . In this case there is a dissenting judgement of one

Judge  (Justice  Stevens) but that is limited to only one aspect of the matter given by majority and that

is a treaty like an Act of Congress, should not be construed to preempt state law unless its intent to do

so is clear.

While the United States Supreme Court in the case El  Al  Israel Ltd.  vs. Tsui Yuan Tseng before it held that  the claim  was barred by the Convention under Article 17 read with Article 24 it was not disputed  before it the incident which was  the basis of the claim that occurred in international transportation in the course of embarking and Supreme Court also accepted that  such of the plaintiff at that time was not  a ‘accident’ within the meaning of Article 17.  As regards to amendment to Article 24 brought out by Montreal Protocol** the Court observed that it did not alter  the situation  as existed earlier and the amendment was merely clarificatory  in nature.  Court was also of the view that the wording  of Article 17 as it existed was certainly subject to  divergent interpretation.  We may  also note that  in the judgment of Unites State Supreme Court there  is an  extract  from  a legal  treatise, The Warsaw Convention Annotated : A Legal Handbook 55 (1988) by L. Goldhirsch  which we extract:

“If the passenger’s lawyer does not want the Convention’s limits   to be applicable, he must either: (a) prove the Convention does not apply because his client was not a passenger in international transportation as defined in Article 1; or b)  if the Convention is applicable, that the limits are unavailable because the carrier failed to deliver a ticket as provided by Article 3;  or c) the carrier was guilty of wilful misconduct (Article 25*) or d) there was no ‘accident’”.

 

______________________________________________________________

Article 25:        The limits of liability specified in  Article  22 shall not apply if it is proved that the damage resulted from an act or omission of the carrier, his servants or agents, done with intent to cause damage or recklessly and with knowledge that damage would probably result; provided that, in the case of  such act or omission of a servant or agent, it is also proved that he was acting within the scope of his employment.

 

 

                        When the claim was first instituted by Tsui Yuan Tseng in the District Court it was dismissed on account of the Convention but on appeal; Court of Appeals  for Second  Circuit ruled otherwise.  It was  the view of Circuit Appeal Court that where a  plaintiff  did not qualify for the relief under the  Convention he could seek relief under local law for an injury sustained in the  course of   international travel.   Supreme Court of United States  reversed this judgment of the Second Circuit Appeal Court.  We now note the facts of the case as under:

                        On May 22, 1993, Tsui Yuan Tseng arrived at John F. Kennedy International Airport (hereinafter JFK) to board an  El Al  Israel Airlines flight to Tel Aviv.  In conformity with standard El Al preboarding procedures, a security guard questioned Tseng about her destination and travel plans.  The guard considered Tseng’s responses  ‘illogical’, and ranked her as a ‘high risk’ passenger.  Tseng was taken to a private security room where her baggage and person were searched for explosives  and  detonating  devices.  She was told to remove her shoes, jacket, and sweater, to lower her blue  jeans to  midhip.  A female security guard then searched Tseng’s body outside her clothes by hand and with an electronic security wand.

 

______________________________________________________________

**It may be noticed  that Montreal Protocol   which to some extent modified  Warsaw Convention has been ratified by the Senate of United States but not by our country.   Article  24 as amended  by Montreal Protocol  as it exists in Warsaw Convention and amended by Montreal  Protocol, in relevant part reads ‘ in the carriage of passengers …., any action for damages ….  only be brought  subject to the conditions and  limits set  out in this  Convention…”   

 

 

 

                        After the search, which lasted 15 minutes, El Al personnel decided that Tseng did not pose a security threat and allowed her to board the flight.   Tseng later testified that she ‘was really sick and very upset’ during the flight, that she was ‘emotionally traumatized and disturbed’ during her month-long trip in Israel, and that, upon her return, she underwent medical and psychiatric treatment for the lingering effects of the body search.

                        Tseng filed suit against El Al  in 1994 in a New York state court of first instance.     Her   complaint   alleged   a  state law personal injury claim based on the May 22, 1993 episode at JFK.  Tseng’s pleading charged, inter alia, assault and false imprisonment, but alleged no bodily injury.  E1 Al  removed the case to federal court.

 

            The Second Circuit Appeal Court, had concluded first that no ‘accident’ within the Article 17’s compass had occurred; in the  Court of Appeals’ view, the Convention drafters did not  ‘aim to impose close to  absolute liability’ for an individual’s  ‘personal reaction’ to ‘routine operating procedures.’ Measures that , although ‘inconvenient and embarrassing,’  are the ‘price passengers pay for … airline safety.’   In some tension with that reasoning, the Second Circuit next concluded that the  Convention does not shield  the very same ‘routine operating procedures’  from assessment  under the diverse laws of signatory  nations governing  assault  and false imprisonment.

                        Article 24 of the Convention, the  Court of Appeals said, ‘clearly states that resort to local law is precluded only where the incident is ‘covered’ by Article 17, meaning where there has been an  accident, either on the plane or in the course of embarking or disembarking, which led to death wounding or other bodily  injury. 

                        US Supreme Court accepted that  El Al’s   search of Tseng was not an ‘accident’ within the meaning of Article 17,  as the parties did not place that Court of Appeals  conclusion at issue.  The  Court accepted again though only for purposes of this decision, that El Al’s actions did not constitute ‘wilful misconduct’ under Article 25 of the Convention.  The court  noted that  the parties did not dispute that the ‘episode-in-suit’  occurred in international transportation in the course of embarking.

                        In Air France v. Saks, 470 U.S. 392  a view has been taken  that  an ‘accident’ under Article 17  is ‘an unexpected or unusual event or happening that is  external to the passenger’.  The United States Court observed that  this definition  should ‘be  flexibly applied after assessment  of all the circumstances surrounding a passenger’s injuries’

                        In the case  of  M/s. Greenseas Shipping Company   Pvt. Ltd.  vs. Chairman & Managing

Director, Indian Bank (Original Petition No.264/96, decided on 23rd November, 2001) this commission has

taken a   view  that when a dispute falls within the four corners of the Consumer Protection Act, 1986 relief

can be granted which can be enforced, there is no reason why  a Consumer Forum will not exercise its

jurisdiction.  Simply because the  discomfort was  during  part of the journey which was outside the country

cannot be ground to reject the claim of the  complainant.   The question of jurisdiction of Consumer Forums

as presently raised was not  examined with reference to the Carraige by Air Act, 1972 and so  the

Warsaw Convention.

                        We do not find any substance in the argument  that since no bodily injury was caused

 to the complainant or that since he did not suffer any economic loss  he is not entitled to any claim.  

                        We, therefore, overrule objections   (iii) and  (iv)  raised  by Mr. Wadhwani as aforesaid.

                        We, however, find that substantial issues have been raised by Mr. Wadhwani  with respect

  to  objection Nos. (i) and (ii) aforesaid.  We would like to hear further arguments on these two objections. 

We will  request  Mr. C.S. Vaidyanathan, Senior Advocate   [M-20, Jangpura Extension,  Telephone No.24311586

 & 24313200] , to assist us in the matter.  He shall be instructed by Mr. Avinash Modi and Astha Tyagi

Advocates  who shall be paid  Rs.2500/- each by the NCDRC  Bar Association  (Legal Aid) to meet their 

out of pocket  expenses.   Registry is directed   to send  complete set of  paper book  each to senior counsel

 and instructing counsel.

                        To come up for  hearing on 20.2.2003.

 

 

………………………………………J

(D.P. WADHWA)

   PRESIDENT

 

 

………………………………………

(RAJYALAKSHMI RAO)

 MEMBER

 

………………………………………

(B.K. TAIMNI)

 MEMBER

 

 

………………………………………J

(K.S. GUPTA )

MEMBER