In a significant victory for consumer rights, a Delhi-based international traveller who found his check-in baggage damaged and valuables missing after a return flight from Canada has been awarded Rs 2.74 lakh in compensation, despite the airline initially offering him only USD 30 (approx. Rs 2,560) for his losses.
The case pertains to an incident that occurred on September 15, 2019, when the complainant, Kumar, landed at Delhi’s Indira Gandhi International Airport after a long overseas tour. His check-in luggage, carried on a China Eastern Airlines flight from Vancouver via Shanghai, was found badly damaged and taped up, with valuable items worth approximately Rs 2 lakh missing.
Upon discovering the theft, Kumar immediately lodged a Property Irregularity Report (PIR) at the airport. The airline acknowledged that 1.5 kg of baggage was missing. Items claimed to be stolen included a Rado wristwatch, an Armani jacket and pullover, a 25-gram gold chain, Chanel perfume, and other personal belongings.
Despite this, the airline offered compensation of just USD 30, citing IATA’s Montreal Convention rules and DGCA guidelines that provide for limited compensation based on baggage weight.
Legal Battle and Commission Orders
Dissatisfied with the nominal compensation, Kumar approached the District Consumer Disputes Redressal Commission, which on November 11, 2020, ordered the airline to pay Rs 1.75 lakh plus 8% annual interest from the date of complaint. An additional Rs 15,000 was awarded for harassment and litigation costs.
The airline appealed the order, but the Haryana State Consumer Commission upheld the lower commission’s findings in its May 20, 2025 order. It confirmed that:
“Since the weight of the luggage was found to be lesser, it is presumed that some articles were stolen… It is the prime responsibility of the airline to compensate the complainant.”
The Commission further ruled that the PIR and photographs provided sufficient proof, and the absence of original purchase bills could not be a valid reason to deny compensation.
The airline had already deposited Rs 95,000 during the appeal, which the Commission directed to be paid to the passenger immediately.
Airline’s Defence and Rebuttal
The airline’s counsel argued that:
- Kumar had admitted in the PIR that the loss was only Rs 7,000.
- He had failed to produce purchase bills for the missing items.
- Compensation was calculated as per international norms of USD 20 per kg for 1.5 kg missing.
However, the Commission dismissed these arguments, holding the airline liable for deficiency in service under Article 10 of the Instruction Rules, and emphasized that actual loss substantiated by PIR and photos could not be ignored.
Expert Views: A Precedent for Consumers
Legal experts say the ruling sets a powerful precedent for air travellers:
- Prachi Dubey (Advocate, Delhi High Court): The case reaffirms that consumer protection laws apply to foreign carriers operating in India, and that compensation for mental harassment is valid even in the absence of bills.
- Alay Razvi (Managing Partner, Accord Juris): The Commission’s reliance on photographs and PIR as admissible evidence strengthens consumer rights, even in the absence of original invoices.
- Tushar Kumar (Advocate, Supreme Court): The ruling highlights that international conventions like the Montreal Convention do not override Indian consumer laws, particularly where clear evidence of negligence exists.
- Harsh Pandya (Advocate, Delhi High Court): Airlines must establish robust complaint redressal systems, as technical defences will not absolve them from liability when deficiency in service is proven.
Final Compensation
With the order of both consumer forums in his favour, Kumar is now entitled to receive approximately Rs 2.74 lakh — which includes Rs 1.75 lakh compensation, interest at 8% for nearly six years, and Rs 15,000 for harassment and litigation expenses. The Haryana State Consumer Commission has also directed that the Rs 95,000 already deposited by the airline during the appeal be handed over to the complainant without delay.
