SpiceJet Loses Bag, Pays Big: Airline To Pay Rs 2 Lakh For Misplaced Gold Jewellery | Business News

Last Updated:June 19, 2025, 15:22 IST

A Delhi State Consumer Commission has ordered SpiceJet to pay Rs 2 lakh compensation to a passenger for losing his checked-in bag containing gold jewellery

On May 27, 2025, the President of the Delhi State Consumer Commission ordered SpiceJet Airlines to pay a total compensation of Rs 2 lakh after the airline lost a passenger’s checked-in bag that contained his wife’s gold jewellery, expensive clothes, and other valuables. While the airline had offered Rs 200 per kg up to a cap of Rs 3,000 as compensation for the lost bag, the passenger refused the offer and filed a consumer complaint, which eventually led to the favourable verdict.

The incident dates back over a decade to May 2, 2013, when the passenger, along with his wife and minor son, was returning from a vacation in Nepal to Delhi. They had two suitcases, each weighing 23 kg, and both were scanned and tagged as check-in baggage at Kathmandu Airport. However, upon arrival at Delhi Airport, one of the bags — the one containing the gold jewellery and expensive clothes — could not be located and was declared lost.

At the Delhi Airport, the airline staff instructed him to file an irregularity report, which he did. Despite investigations by the airline and its officer, the bag remained untraceable. SpiceJet informed the passenger that he was entitled to compensation of Rs 200 per kg, with a maximum cap of Rs 3,000. Dissatisfied with this meagre offer, the passenger escalated the matter — first attempting resolution through the airline’s management, then by sending a legal notice, but without success. He alleged that he was made to “run from pillar to post” by the airline.

Consequently, he lodged a consumer complaint with the Delhi District Consumer Commission, and later, when SpiceJet appealed, the case went to the Delhi State Consumer Commission.

The airline’s lawyers argued before the State Commission that terms and conditions, clearly mentioned on the e-ticket, warned passengers not to carry valuables or medications in checked-in baggage. They claimed that by violating this condition, the passenger had taken a risk and therefore could not benefit from his own wrongdoing.

However, both the District and State Consumer Commissions rejected SpiceJet’s argument. The State Commission noted that the airline failed to present any evidence that this baggage policy was printed on the e-ticket or displayed at the check-in counter. Legally, the absence of evidence showing proper placement of such terms and conditions nullified the airline’s argument that a binding clause existed limiting its liability.

As a result, the Delhi State Consumer Commission upheld the District Commission’s order, directing SpiceJet to pay Rs 1.5 lakh for mental harassment and Rs 50,000 for litigation expenses, totalling Rs 2 lakh. The Commission stated that this case differed significantly from other baggage loss cases. It interpreted the case in light of:

• Sections 151 and 152 of the Indian Contract Act, 1872
• Section 106 of the Indian Evidence Act, 1872
• Supreme Court precedent in Consumer and Citizen Forum vs Karnataka Power Corporation (1994 (1) CPR 130)

Timeline of the Lost Baggage Case

• May 2, 2013: The passenger booked an international flight (SG-46) from Kathmandu to Delhi with two 23-kg suitcases. SpiceJet issued baggage receipts SG-0775590633 & 34.
• May 2, 2013: Upon arrival in Delhi, one bag was missing. The passenger contacted customer care and filed a complaint.
• May 5 & 6, 2013: He emailed SpiceJet; the airline replied that an investigation was underway and assured him of recovery.
• May 11, 2013: He emailed the nodal officer, who replied that the bag was officially declared lost. The airline reiterated that he would receive Rs 200 per kg with a cap of Rs 3,000.
• May 19, 2013: He contacted the Appellate Authority but got no satisfactory response. He sent a legal notice, but received no reply, prompting him to file a complaint with the District Commission.
• December 7, 2023: The Delhi District Consumer Commission found SpiceJet guilty, ordering the airline to pay Rs 1.5 lakh compensation and Rs 50,000 as litigation expenses.
• SpiceJet appealed the order before the Delhi State Consumer Commission, which then gave its final verdict in May 2025.

What the Delhi State Consumer Commission Said

In its final order dated May 27, 2025, the Delhi State Consumer Commission observed that SpiceJet’s key defence was based on terms and conditions warning passengers not to pack valuables in check-in luggage. However, the Commission emphasized that the airline failed to show any proof that such terms were printed on the e-ticket or displayed at the counter.

SpiceJet also did not submit the original e-ticket during the hearing, further weakening its case. Therefore, the Commission concluded that there was no binding contract limiting the airline’s liability for the lost baggage. Without evidence that the passenger was made aware of these terms, SpiceJet’s claim lacked legal ground.

Legal Basis for Compensation

The Commission held that SpiceJet failed in its fundamental obligation as a bailee to safely return the checked-in baggage. The District Commission was correct in concluding that SpiceJet did not exercise a reasonable degree of care in handling the luggage. This amounted to deficiency in service under the Consumer Protection Act, 2019, entitling the passenger to compensation.

Moreover, the Commission stressed that SpiceJet’s failure to provide terms and conditions to the passenger rendered its reliance on legal precedents inapplicable. Without proof that a valid contract incorporating those clauses existed, the airline could not evade liability.

In conclusion, the passenger’s persistence over 10 years and the absence of proper documentation by SpiceJet led to the Rs 2 lakh award for mental harassment and litigation costs.

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