Case: Bharathi Knitting Company Vs. Dhl Worldwide Express (Courier Division of Airfreight Limited )

and limited their liabilities, the question arises : whether the State Commission or the National Commission under the Act could give relief for damages in excess of the limits prescribed under the contract? 4. It is true that the limit of damages would depend upon the terms of the contract and facts in each case. In Ansons Law of Contract, 24th edition, at page 152, on exemption clause with regard to notice of a printed clause, it was stated that a person who signs a document containing contractual terms is normally bound by them even though he has not read them, and even though he is ignorant of their precise legal effect. But if the document is not signed, being merely delivered to him, then the question arises : whether the terms of the contract were adequately brought to his notice ? The terms of the contract have elaborately been considered and decided. The details thereof are not necessary for us to pursue. It is seen that when a person signs a document which contains certain contractual terms, as rightly pointed out by Mr. R. F. Nariman, learned senior counsel, that normally parties are bound by such contract ; it is for the party to establish exception in a suit. When a party to the contract disputes the binding nature of the signed document, it is for him to prove the terms in the contract or circumstances in which he came to sign the documents need to be established. The question we need to consider is : whether the District Forum or the State Commission or the National Commission could go behind the terms of the contract ? It is true, as contended by Mr. M. N. Krishnamani, that in an appropriate case, the Tribunal without trenching upon acute disputed question of facts may decide the validity of the terms of the contract based upon the fact situation and may grant remedy. But each case depends upon its own facts. In an appropriate case where there is an acute dispute of facts necessarily the Tribunal has to refer the parties to the original civil court established under the Civil Procedure Code, 1908, or the appropriate State law to have the claims decided between the parties. But when there is a specific term in the contract, the parties are bound by the terms in the contract. The National Commission in the impugned order pointed out as under :"We have considered the submissions of counsel for the parties on the facts of the case and having regard to the earlier decisions of this Commission. The consignment containing the documents sent in the cover had been accepted by the appellant and was subject to the terms and conditions mentioned on the consignment note. The complainant had signed the said note at the time of entrusting the consignment and had agreed to and accepted the terms and conditions mentioned therein. Clauses 5 and 7 of the terms and conditions as also the important notice mentioned on the consignment note are reproduced below : Clause 5 : Limitation of liability : Without prejudice to clause 7 the liability of DHL for any loss or damage to the shipment, which term shall include all documents or parcels consigned to DHL under this air bill and shall not mean any one document or envelope included in the shipment is limited to the lesser of (a) US $ 100 ; (b) The amount of loss or damage to a document or parcel actually sustained ; or (c) The actual value of the document or parcel as determined under section 6 hereof, without regard to the commercial utility or special value to the shipper. Clause 7: Consequent damages excluded : DHL shall not be liable in any event for any consequential or special damages or other indirect loss, however arising whether or not DHL had knowledge that such damage might be incurred including but not limited to loss of income, profits interest, utility or loss of market. Important notice : By the conditions set out below DHL and its servants and agents are firstly not to be liable at all for certain losses and damages and, secondly, wherever they are to be liable the amount of liability strictly limited to the amount stated in condition and customers are, therefore, advised to purchase insurance cover to ensure that their interests are fully protected in all event.Under clause 5 of the terms and conditions of the contract, the liability of the appellant for any loss or damage to the consignment was limited to US $ 100. Clause 7 of the contract specifically provided that the liability of the appellant for any consequential or special damages or any other indirect loss, that may occur including the loss of market or profits, etc., was excluded. It is also pertinent to note that despite the advice in the important notice, the complainant did not disclose at the time of consignment the contents of the cover and also not purchased the insurance cover to ensure that their interests are fully protected in all events." 5. In view of the above consideration and findings, we are of the opinion that the National Commission was right in limiting the liability undertaken in the contract entered into by the parties and in awarding the amount for deficiency in service to the extent of the liability undertaken by the respondent. Therefore, we do not think that there is any illegality in the order passed by the Commission. Shri Krishnamani has brought to our notice that there are number of judgments covering divergent views. In view of the view we have expressed above, it is now settled law and the Tribunals would follow the same. Lastly, it is contended that besides the amounts awarded by the State Commission, liberty may be given to the appellant to pursue the remedy available in law. It is needless to mention that the remedy available at law would be pursued according to law. 6.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]We find no force in the contention.It is true that the Act is a protective legislation to make available inexpensive and expeditious summary remedy. There must be a finding that the respondent was responsible for the deficiency in service, the consequence of which would be that the appellant had incurred the liability for loss or damages suffered by the consumer due to deficiency in service thereofThe terms of the contract have elaborately been considered and decided. The details thereof are not necessary for us to pursue. It is seen that when a person signs a document which contains certain contractual terms, as rightly pointed out by Mr. R. F. Nariman, learned senior counsel, that normally parties are bound by such contract ; it is for the party to establish exception in a suit. When a party to the contract disputes the binding nature of the signed document, it is for him to prove the terms in the contract or circumstances in which he came to sign the documents need to be establishedIt is true, as contended by Mr. M. N. Krishnamani, that in an appropriate case, the Tribunal without trenching upon acute disputed question of facts may decide the validity of the terms of the contract based upon the fact situation and may grant remedy. But each case depends upon its own facts. In an appropriate case where there is an acute dispute of facts necessarily the Tribunal has to refer the parties to the original civil court established under the Civil Procedure Code, 1908, or the appropriate State law to have the claims decided between the parties. But when there is a specific term in the contract, the parties are bound by the terms in the contract.In view of the above consideration and findings, we are of the opinion that the National Commission was right in limiting the liability undertaken in the contract entered into by the parties and in awarding the amount for deficiency in service to the extent of the liability undertaken by the respondent. Therefore, we do not think that there is any illegality in the order passed by the Commission.Shri Krishnamani has brought to our notice that there are number of judgments covering divergent views.In view of the view we have expressed above, it is now settled law and the Tribunals would follow the same. Lastly, it is contended that besides the amounts awarded by the State Commission, liberty may be given to the appellant to pursue the remedy available in law. It is needless to mention that the remedy available at law would be pursued according to law.