This revision petition is directed against order dated 11.8.2005 of the A.P. State Consumer Disputes Redressal Commission, Hyderabad (for short ‘State Commission’) vide which appeal of the petitioner – Air India Ltd. against the order of the District Consumer Forum-II, Hyderabad dated 23.8.2001 has been dismissed. The District Forum has ordered the petitioner/opposite party to pay 16,000/- Francs approximating to Rs.1,20,000/- for the loss of baggage and Rs.10,000/- as compensation.  A cost of Rs.1,000/- has also been awarded.  This having been affirmed by the State Commission in appeal, the petitioners are aggrieved and have filed this revision petition.

          Facts with regard to the loss of baggage  while in transit during the travel of the respondent/complainant from Chicago to Hyderabad is not in dispute.  It is also admitted by the parties that the petitioner/opposite party reimbursed an amount of Rs.43,280/- for the lost baggage as compensation which has been received by the respondent/complainant.  The main dispute raised by the respondent/ complainant, however, pertains to whether he is entitled to compensation of the 64 kgs of lost baggage @ 250 Francs per kg. or 20US$ per kg.  Both the fora below have held that as per Rule 22 (2) (a) and 23 of second schedule of Carriage by Air Act., 1972, the compensation should be worked out on the basis of 250 Francs per kg.

          When the matter was taken up for final arguments today, while the petitioner is represented by Mr.Vivek K.Kishore, Advocate, neither the respondent has appeared nor is he represented by any counsel even though he has duly acknowledged the receipt of the notice with regard to today’s hearing.  Respondent, it appears is not keen on contesting the petition.  We, therefore, proceed to decide the matter.

          We have heard learned counsel for the petitioner and also have perused the records.

          The short point for adjudication is as to whether the State Commission has correctly affirmed the interpretation and application of Rule 22 (2) (a) of the second schedule to Carriage by Air Act, 1972 which reads as under :-

“22 (2) (a)   In the carriage of registered baggage and of cargo, the liability of the carrier is limited to a sum of 250 Francs per kilogram, unless the passenger or consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires.  In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that, that sum is greater than the passenger’s or consignor’s actual interest in delivery at destination.”

          While a plain reading at the first instance appears to justify liability of the carrier @ 250 Francs per kg., it appears that the said 250 French Francs  are in fact only an expression of US $ 20 per k.g., because, while Rule 22 (2) (a) limits the liability of the carrier in case of loss of registered baggage to a sum of 250 Francs per kg. ;  Rule 22 (5) clarifies that the sums mentioned in Francs in the said Rule refers to a currency unit consisting of sixty five and half milligrams of gold of millesimal fineness nine hundred. Thus the value of Francs have to be determined in terms of the value of gold calculated on the basis of a currency unit consisting of  sixty five and half milligrams of gold of millesimal fineness nine hundred and not to be mechanically converted on the basis of prevalent exchange rate of national currency per Francs.  This would be clear from the notice issued by the International Air Transport Association’s (IATA) concerning Carriers Limitation of Liability wherein under clause 6.1 it has been stipulated as under :

“If the carriage involves an ultimate destination or stop in a country other than the country of departure, the Warsaw Convention may be applicable and the convention governs and in most cases limits the liability of the carrier in respect of loss, damage or delay to cargo to 250 French gold francs per kilogram unless a higher value is declared in advance by the shipper and a supplementary charge paid if required.  The liability limit of 250 French gold francs per kilo gram is approximately US $ 20 per kilogram on the basis of USD 42.22 per ounce of gold.”

          A combined reading of these provision make it quite clear that the liability whether in terms of French Francs or in terms of USD will be limited to 20 US$ per kg.  Learned counsel for the petitioner has also referred to clause 4 of the IATA Regulations which also stipulates that the carriers liability shall not exceed USD 20 or the equivalent per kg. of goods lost, damaged or delayed unless a higher value is declared by the passengers for which a supplementary charge is required to be paid.

          In the case of Gururaj Kishore Vs. Gulf Air Co. and Anr. this Commission has not accepted the argument that the complainant be paid in gold or French Francs as per the Carriage by Air Act holding that assessment as per baggage Rules in International flights is done per kg. in USD which thereafter is converted into the national currency.  A combined reading of the provisions of Rule 22 (2) (a), Rule 25 and the provision of the notice of IATA on the subject of liability of carriers on the subject leaves no manner of doubt that the liability is limited to 20 USD per kg. and both the fora below have failed to appreciate this point by ignoring that the reference to French francs was only an expression in a different currency though restricted to 20 USD per kg.  Thus, their orders being not based on correct interpretation are irregular and, therefore, liable to be set aside. The impugned order is, accordingly, set aside and the revision petition is accepted, however, without any order as to cost.