Delhi couple’s bags arrived ripped open after flight; court orders airline to pay Rs 3.61 lakh

A Delhi consumer commission has directed American Airlines to pay more than Rs 3.61 lakh to a Delhi couple after two of their checked bags arrived badly damaged and several belongings were missing following a flight from Miami to Toronto in 2017.

The District Consumer Disputes Redressal Commission, New Delhi, passed the order on August 14, 2026, holding that the airline was responsible for the baggage while it was in its custody. The commission awarded compensation for the missing belongings, along with interest, compensation for mental harassment and legal expenses.

Delhi couple found bags ripped open in Toronto

According to the commission's order, Indu Jain and Rajeev Prakash Jain travelled from New Delhi to London and then Miami on British Airways in May 2017.


On June 2, 2017, the couple travelled from Miami to Toronto on American Airlines flight AA2671. When they collected their baggage in Toronto, they discovered that two bags had been badly damaged and torn open. Several personal belongings and gifts were also missing.

The couple immediately reported the damaged baggage and missing items to American Airlines at Toronto airport. Their initial claim was for USD 1,800.

They subsequently submitted details of additional items and increased their total claim to USD 17,461.73. The couple also said they had to purchase replacement belongings during their stay in Toronto and later in London.

American Airlines disputed the baggage claim

American Airlines denied liability and questioned the changing value of the couple's claim. The airline pointed out that the claim had increased from USD 1,800 to USD 15,430.73 and eventually to USD 17,461.73. It also argued that some receipts did not correspond with the items reported missing.

The airline further said that certain articles, including jewellery and electronic devices, were not covered under its conditions of carriage.

American Airlines also relied on the limits of liability under the Carriage by Air Act, 1972. It argued that the couple had not made a special declaration regarding valuable items and that inconsistencies in their documents justified rejection of the claim.

British Airways also denied responsibility, pointing out that the Miami-Toronto sector was operated by American Airlines and that the baggage had been handed over to American Airlines at Miami.

Commission holds American Airlines responsible

The three-member bench comprising President Divya Jyoti Jaipuriar and members Harpreet Kaur Charya and Ashwani Kumar Mehta noted that the couple had reported the damage and missing belongings immediately after reaching Toronto.

The commission also found that American Airlines had exclusive custody of the baggage during the Miami-Toronto journey. Importantly, the airline did not produce a proper investigation or baggage survey report explaining how the bags had been delivered in such a damaged condition.

The bench observed: “OP No. 2 (American Airlines) has systematically attempted to evade its operational responsibility by shifting blame onto OP No. 1. The record unequivocally demonstrates that the physical custody and handling of the checked baggage on the sector from Miami to Toronto rested entirely with OP No.2.”

The commission further noted that the couple's later revision of the claim could not be accepted in full, particularly where it included purchases made after arriving in Toronto.

It held that the initial USD 1,800 claim made on June 2, 2017 was valid and binding.

Airline failed to explain how bags were damaged

The commission said American Airlines had failed to explain what happened to the baggage while it was under its control.

It observed: “OP No. 2 has also failed to submit any report of a meaningful internal investigation or produce an official Baggage Search/Survey Report explaining as to how checked baggage in their exclusive custody was delivered ripped wide open with missing items of the complainants.”

The bench added that the airline could not rely on technical arguments concerning liability limits when the circumstances pointed towards serious negligence in handling the checked baggage.

“OP No. 2 cannot escape its liability by hiding behind technical pleas when gross negligence in baggage custody is evident on the face of the record.”

What did the commission say about airline liability?

American Airlines had argued that its liability was restricted under the Carriage by Air Act, 1972.

However, the commission referred to the Supreme Court's judgment in Trans Mediterranean Airways v Universal Exports, and said that consumers have an additional remedy under the Consumer Protection Act.

The bench observed: “While OP No. 2 has contended about the ceiling of claim filed by the complainants, under the Carriage by Air Act, 1972, the Hon'ble Supreme Court in Trans Mediterranean Airways v. Universal Exports [(2011) 10 SCC 316] has held that the relief sought under the Consumer Protection Act is an additional remedy, and total failure of care resulting in ripped baggage with missing items constitutes an actionable deficiency in service.”

It further said: “The airline cannot use liability limitation clauses as a complete shield against gross operational failure.”

How much will American Airlines pay?

The commission did not accept the couple's revised claim of USD 17,461.73.

Instead, it recognised their original claim of USD 1,800, made immediately after discovering the missing belongings in Toronto.

Using an exchange rate of Rs 62 per US dollar at the time the complaint was filed, this amounted to Rs 1,11,600.

American Airlines was also directed to pay:

• Rs 1,11,600 for the damaged bags and missing items covered by the original claim
• 9% annual interest on this amount from October 5, 2018, until payment
• Rs 2 lakh for mental stress, harassment, hardship and inconvenience
• Rs 50,000 towards legal costs

The total award works out to more than Rs 3.61 lakh, excluding any further interest that may accrue depending on when the payment is made.

American Airlines given 45 days to comply

The commission directed American Airlines to comply with the order within 45 days of receiving a copy of the decision.

If the airline fails to make the payment within the stipulated period, the entire amount awarded will attract 12% annual interest for the period of delay.

The complaint against British Airways and the travel insurer was dismissed, with the commission finding no corresponding deficiency in service on their part.