Deficiency Of Service: State Consumer Commission Directs DHL To Pay Compensation For Lost iPhone

Brief Facts:

The Complainant bought an iPhone for Rs. 45,000 and wanted to send it to his friend in Mahe, Seychelles. He contacted DHL to deliver the package and paid Rs. 3,915 for the shipping charges. Despite DHL's assurance that the parcel would reach its destination within 10 days, it never arrived at the destination. The Complainant contacted DHL, who confirmed that the parcel was lost in transit and offered $100 along with the shipping charges as compensation. However, the Complainant rejected this offer and demanded the price of the iPhone, additional charges, and compensation. DHL refused to agree which lead to the filing of a consumer complaint in the Additional Mumbai Suburban District Consumer Disputes Redressal Commission.

The District Commission ruled in favor of the complainant, ordering DHL to pay Rs 25,000 for mental agony and Rs. 8,000 for litigation costs.

Contentions of DHL:

DHL admitted that it received the iPhone for delivering it to Mahe, Seychelles, however, it disputed the claimed value, stating that the cost of iPhone was only worth Rs. 9,000 and not Rs. 45,000 according to the Airway Bill. Therefore, DHL offered Rs. 17,145 as a final settlement, which the complainant declined. DHL argued that the complainant did not opt for insurance or provide any documentation regarding the iPhone's exact value, deeming the claim to be false.

Observations of the State Commission:

The State Commission observed that DHL admitted that the Complainant handed over iPhone for delivering it to Mahe, Seychelles and it charged Rs. 3,915 as delivery charges. Moreover, DHL had assured that the iPhone would be delivered to the destination within 10 days, which never reached the destination. No explanation was given by DHL as to what had happened to the consignment.

Further, DHL argued that the price of the phone by the Complainant was Rs. 9,000 in the voucher which mentions that the consignment carrying the phone was worth the same price. On the contrary, Complainant had alleged the cost as Rs. 45,000, but nothing is placed on record to establish the same. In fact, in the consignment receipt, the complainant himself declared the value of the iPhone for customs was Rs. 9,000. Therefore, the Commission restricted the claim of the Complainant to Rs. 9,000. It also pointed out that though no insurance was taken by the complainant, it was the duty of DHL to compensate for the declared price of the iPhone. Since the consignment never reached the destination DHL can be held guilty for deficiency in service.

Therefore, the complainant is entitled to Rs. 9,000 plus freight charges of Rs. 3,915 from DHL. The incident had taken place in 2010 and the complainant had to struggle to get compensation. Thus, the complainant is entitled to compensation and the costs of litigation.

In conclusion, the State Commission upheld the District Commission’s order and justified the amount awarded by it i.e. Rs. 25,000 towards the loss of the phone and mental agony to the complainant with interest @ 9% per annum, costs of Rs. 8,000. It imposed an additional cost of Rs. 3,000.

Case: DHL Express Pvt. Ltd. vs Vinod Rao

Click Here To Read/Download Order

Full View