CHENNAI: A ‘domestic dispute’ of a different kind played out in a Tamil Nadu mahila court this week, involving two central agencies holding each other accountable for damage to uninsured defence cargo ferried by a Chinese airline.
Sparks flew inside the time-worn courtroom in Chengalpattu near Chennai after Embarkation Headquarters (EH), a military unit that manages movement of troops and equipment, accused Airports Authority of India (AAI) of being responsible for damage to imported consignment while it was being unloaded from an Air China flight.
AAI sought to distance itself from the dispute, saying it was merely a cargo processing centre and not liable for anything that happens to a shipment during the journey or unloading. AAI’s lawyers argued that the issue was strictly between the defence unit and the airline, and that the consignor had failed to insure the shipment, rendering the claim for damages invalid.
EH countered that govt policy permits insurance for imported defence goods only if their value exceeds Rs 2.5 crore. It said the damaged cargo was worth Rs 45.8 lakh, falling below the insurance threshold.
AAI dismissed this reasoning, terming it an attempt to shift blame. It said that a claim had been forwarded to state-owned New India Assurance, the designated underwriter for such disputes, but the process had stalled without any resolution.
During the hearing, AAI pointed out that Bhadra International India, the ground handling agency responsible for loading and unloading cargo, hadn’t even been named in the case. It also argued that the liability of an airline ferrying critical equipment extended beyond landing and till the delivery of the shipment.
That argument fell apart when the consignor produced a segregation report, a crucial document detailing cargo condition during handover. The report confirmed that Air China delivered the consignment in sound condition, leaving AAI solely accountable for the damage.
On Feb 6, sessions judge M Ezhilarasi ordered AAI to pay EH Rs 45 lakh in compensation, which is equivalent to the price of the damaged military equipment.