Case: M/s. KLM Royal Dutch Airlines Vs. Director General of Investigation &amp; Registration

2. The appellant is a worldwide airlines company with its headquarters at Amsterdam, Netherlands. A complaint was filed by M/s. Maharajah & Co. (hereinafter also referred to as Complainant) contending inter alia that they booked a consignment with the appellant airlines vide Airway Bill dated 21.09.1995. The said consignment comprised three parcels containing Badges and Crests, which were to be used on very specific tournaments/meetings/conference dates. The consignment was booked for carriage from New Delhi to New Orleans, USA. It was stated in the said complaint that on 26.09.1995 the complainant received a message from the appellant airlines that two out of the three parcels were missing. This message of 26.09.1995 was followed by another message of 03.10.1995 informing the complainant that in spite of efforts made by the appellant, the baggage could not be found and therefore it was suggested to the complainant that a claim could be filed with the underwriters if the aforesaid shipment was covered by insurance. The appellant airlines also asked the complainant to furnish necessary documents to process the claim. Near about the same time, the appellant airlines traced out the said two missing parcels and informed the complainant through its letter dated 24.10.1995, contending inter alia that the aforesaid two parcels have been traced out and the same have since been forwarded to the destination on 20.10.1995.A stand was, however, taken on behalf of the complainant that the aforesaid delivery of the two parcels after the event was over was of no use to the customer in USA. The complainant also took up a plea that it had already lost goodwill due to delay in the delivery of goods to the buyer. The complainant, therefore, made a claim of Rs.6 lakh from the appellant on account of its negligence and deficiency in service. It may be stated here that the complainant has also filed a separate complaint before the Delhi State Consumer Redressal Forum for payment of compensation in terms of the Consumer Protection Act, 1986, which is pending for disposal till date.3. On receipt of the aforesaid complaint filed by M/s. Maharajah & Co. the respondent issued a notice to the appellant on 22.10.1996 calling for its comments on the complaint along with other information and documents. The appellant furnished its reply contending inter alia that the rules relating to loss, damage or delay to cargo and compensation for the same in international air transportation is governed by the Carriage by Air Act, 1972 and the Schedule attached thereto and in terms of the said Act the liability of the carrier is subject to the rules relating to liability established by Warsaw Convention, 1929. After receiving the aforesaid reply the respondent, which is a statutory authority, came to the prima facie conclusion that the appellant failed to render services which were expected from it and that the trade practice carried on by the appellant thus constitutes an unfair trade practice falling under clauses (ii), (iv) and (vi) of Section 36A (1) of the MRTP Act. Consequently, the respondent filed an application for registration and investigation before the MRTP Commission, New Delhi, in terms of the provisions of Section 36 (B) of the MRTP Act.4. The Commission after receipt of the aforesaid application took up the same for consideration and issued notice and thereafter heard the aforesaid application. By the impugned judgment and orders the MRTP Commission found the appellant guilty of adoption of and indulgence in unfair trade practices to the extent that there was deficiency in service. Having held thus, the Commission issued a direction to the appellant to cease the aforesaid trade practice and also file an affidavit stating that the appellant would desist from the same in future. Being aggrieved by the aforesaid order passed by the MRTP Commission, the present appeals have been preferred as statutory appeals in terms of the provisions of Section 55 of the MRTP Act.

Court's reasoning:
we may now examine the facts of the present case. Neither in the complaint filed by M/s Maharajah and Co. before the Director General nor in the complaint filed by the Director General nor in the complaint filed by the Director General filed before the MRTP Commission there is any allegation of any false or misleading representation. None of the complaints aforesaid, in fact contains any of the aforesaid ingredients as mentioned. Unless any such allegation is made in such complaints, the MRTP Commission could not have come to a conclusion that the appellant has committed an unfair trade practice. We have carefully perused the impugned order passed by the MRTP Commission. In the findings recorded by the MRTP Commission there is not even a single finding that there is any such false representation or misstatement by the appellant airlines regarding their services. The MRTP Act also contains provisions regarding penalties relating to unfair trade practices. Section 48C of the MRTP Act provides that if any person contravenes any order made by the MRTP Commission under Section 36D, he shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which may extend to ten lakh rupees. The aforesaid provision is a stringent provision which provides for punishment upto three years and also fine up to ten lakh rupees. Therefore, the Commission is required to examine the allegations with due care and caution and also the essential ingredients as contained in the provisions of Section 36A of the MRTP Act and while passing the order under Section 36D it must be fully satisfied that there is in fact contravention of any of the clauses of Section 36A.