BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED: 17.06.2023  

PRESENT

HON’BLE Mr. JUSTICE HULUVADI G. RAMESH   : PRESIDENT

Mr.K.B SANGANNANAVAR          :       JUDICIAL MEMBER

Mrs. DIVYASHREE M         :       LADY MEMBER

APPEAL NO.1019/2023

ORDER

HON’BLE Mr. JUSTICE HULUVADI G. RAMESH, PRESIDENT

1.      This is an Appeal filed Under Section 41 of the Consumer Protection Act, 2019 by the opposite party No.1 in CC No.277/2021 on the file of IV Additional District Consumer Disputes Redressal Commission, Bangalore, aggrieved by the order dated 31.03.2023.

2.      The Commission heard arguments.  Perused the impugned order and examined grounds of Appeal.

3.      On perusal of records, it reveals that, on 24.02.2019 the Respondent No.1 had purchased two return flight tickets of Jet Airways for himself and his wife from Bangalore to London through the Appellant by making payment of Rs.84,366/-.  On 18.04.2019 Respondent No.1 received an email from Jet Airway that, the flight has been cancelled and applicable partial refund for the unutilized part of itinerary will be paid through travel agent.  The respondent No.1 approached appellant for refund of flight tickets and the appellant replied that, they will refund as soon as Jet Airways release the money, but even after lapse of 24 months the complainant not received any amount.  Hence consumer complaint came to be filed.  Per contra, appellant herein contended before the District Commission that, Jet Airways was responsible for the operation and maintenance of its airlines and was liable to refund its customers in case of cancellation of its flights and unfortunately Jet Airways has stopped operation of airlines and cancelled all its flights and is undergoing insolvency proceedings under Insolvency and Bankruptcy Code, 2016. 

4.      The District Commission has allowed the complaint on 31.03.2023 directing the appellant and opposite party No.2 jointly and severally to refund Rs.84,366/- along with interest at the rate of 6% from the date of payment made for purchase of air tickets till the date of refund of entire amount and to comply the order within 45 days, which is impugned by appellant on the ground that, the appellant company is only an intermediary which provides a platform to their users to do bookings and is exempted by virtue of “Safe Harbor” Clause enshrined under Section 79 of IT Act 2000 from liability for third party information, data and communication link made available or hosted by it. 

5.      Further appellant relies the decision of Hon’ble Karnataka High Court in the matter between KunalBahl Vs State of Karnataka, in Criminal Petition No.4676/2020, vide order dated: 07.01.2021, wherein which it has ruled that, an intermediary as defined under the information Technology Act or its directors/officers would not be liable for any action or inaction on the part of a vendor/seller making use of the facilities provided by the intermediary in terms of a website or a market place. 

6.      Further the appellant submits that, a Refund Application was raised by the appellant with Respondent No.2 through IATA on 02.05.2019 and on 24.07.2021 the Respondent No.2 through IATA issued instructions to the appellant to refund Rs.6,638 (INR 3312 X 2) to the respondent No.1.  The appellant informed the Respondent No.1 via email dated: 10.06.2021 “that after adjusting the cash back of INR 5,000/- and convenience fee, the Respondent No.1 is eligible for refund of INR 1,638/- and also asked for his confirmation for processing the refund to Paytm Wallet, but respondent No.1 did not reply. 

7.      The Respondent No.1 had accepted the terms and conditions mentioned in the platform of the Appellant and was well aware about the terms and conditions mentioned in the website/platform of the appellant that, “In case of cancellation, only ticket price will be refunded.  Convenience fee and the amount paid for Free Cancellation will not be refunded” and in the invoice it is very clearly mentioned that, “Convenience Fee is non-refundable”.  The payment made by the Respondent No.1 towards booking of flight tickets were transferred to IATA which, as per procedure, transferred the same to the concerned airlines.  Since, bankruptcy proceedings against the Respondent No.2 were going on the Respondent No.2 had to cancel all its flights.  The liability in respect of refund of flight tickets lies solely with Jet Airways and the appellant is only acting as per the directions of IATA.

8.      Further appellant submits that, the District Commission has misconstrued the messages sent by Respondent No.2 dated: 19.04.2019 that envisage that, refund has to be made by agent and the substance of said message is to just to inform the travelers that, for processing refund in respect of their cancelled ticket they should contract agent who will complete the formalities and facilitate for refund as per the provisions of Insolvency and Bankruptcy Code, 2016 and the said messages never conveyed the traveler that, the agent will refund the amount from their pocket.  The District Commission has erroneously held that, the Appellant being an agent of Respondent No.2 is liable to refund the ticket amount to Respondent No.1.  Admittedly the ticket amount was transferred to airline and until refund is received from airline the same cannot be transferred to respondent No.1.  Hence prays to allow the appeal by setting aside the impugned order dated: 31.03.2023 passed by the District Commission in CC No.277/2021. 

9.      Thus the District Commission while passing its order has erroneously made liable the appellant/opposite party No.1 for refund of the flight tickets.  In the circumstances the impugned order passed by the District Commission requires to be modified.

10.    Appeal is allowed.  Consequently modified the impugned order passed in C.C. No.277/2021 on the file of IV Additional District Consumer Disputes Redressal Commission, Bangalore, with a direction to the opposite party No.2 – Jet Airways to make refund of Rs.84,366/- to the Respondent No.1/complainant along with interest at the rate of 6% per annum from the date of payment made for purchase of air tickets till the date of refund of the entire amount.  The Respondent No.2 – Jet Airways shall comply the order within 30 days from the date of the order. 

11.    The amount in deposit before this Commission shall be transferred to District Commission. Further the District Commission is directed to return the said transferred amount to the Appellant/opposite party No.1 after verifying proper identity proof.

12.    Provide copy of this order to the District Commission as well we parties to the Appeal.

LADY MEMBER         JUDICIAL MEMBER               PRESIDENT

KNMP*