Discover how the Punjab State Commission adjudicates consumer claims amid Jet Airways’ insolvency. Learn about the NCLT’s role and legal implications.
NCLT to Adjudicate Consumer Claims Amid Jet Airways Insolvency; Punjab State Commission Dismisses Appeal
Background:
The Punjab State Consumer Disputes Redressal Commission recently ruled on a dispute involving flight cancellations by Jet Airways, booked through Make My Trip, following the initiation of insolvency proceedings against the airline under the Insolvency and Bankruptcy Code. The State Commission’s decision reversed the order of the District Commission and emphasized the significance of considering Jet Airways’ terms and conditions and its Resolution Plan in such cases. Notably, the State Commission affirmed that the National Company Law Tribunal (NCLT) holds final authority over consumer claims related to the airline’s insolvency.
The Dispute:
In the Jet Airways Insolvency Case, Ramesh Bajaj booked two air tickets with Jet Airways via Make My Trip for a trip from Chandigarh to Calcutta, with a stop in Pune on the return leg. However, the flight from Pune to Chandigarh was canceled, leaving Mr. Bajaj stranded. Despite seeking assistance from the airline and airport authorities, Mr. Bajaj couldn’t find resolution. This situation led to additional expenses for him.
Initial Ruling:
Mr. Bajaj filed a consumer complaint against Make My Trip and Jet Airways in the Jet Airways Insolvency Case before the District Consumer Disputes Redressal Commission in Ferozepur, Punjab. The District Commission ruled in Mr. Bajaj’s favor, ordering compensation payments and litigation costs. Dissatisfied with this decision, Make My Trip appealed to the Punjab State Consumer Disputes Redressal Commission.
Legal Arguments:
Make My Trip argued it acted only as a facilitator in the booking process. It wasn’t responsible for flight cancellations. Meanwhile, Jet Airways highlighted that passengers, including Mr. Bajaj, agreed to terms and conditions. These conditions included the airline’s cancellation policy.
State Commission’s Analysis:
In the Jet Airways Insolvency Case, the State Commission delved into the circumstances surrounding the flight cancellation and noted the airline’s bankruptcy declaration by the NCLT. It emphasized events beyond the airline’s control. Additionally, it cited the Resolution Plan’s provisions for compensation options. The State Commission determined the District Commission had overlooked critical factors, including the terms and conditions set forth by Make My Trip.
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Verdict and Implications:
Consequently, in the Jet Airways Insolvency Case, the State Commission allowed the appeal. It overturned the District Commission’s decision and stressed the NCLT’s authority. This ruling underscores the complexity of consumer claims amid insolvency proceedings. It also sets a precedent for future disputes with similar circumstances.
Conclusion:
The verdict of the Punjab State Consumer Disputes Redressal Commission addresses the specific case. Moreover, it establishes guidelines for handling consumer claims during the insolvency of major entities like Jet Airways. Additionally, the role of regulatory bodies such as the NCLT is emphasized.
