A recent ruling by the Delhi State Consumer Commission has ordered SpiceJet to compensate a passenger with ₹2 lakh for a lost checked-in bag that contained his wife's gold jewellery and other valuables. The incident, dating back to May 2, 2013, highlights the ongoing disputes between airlines and passengers regarding lost luggage and the extent of compensation.

The passenger, along with his wife and minor son, was returning to Delhi from a vacation in Nepal. Upon arrival at Delhi Airport, one of their two checked-in bags, specifically the one containing the gold jewellery and expensive clothes, was missing. The airline staff instructed him to file an irregularity report, which he promptly did. Despite the airline's investigation, the bag could not be located.

SpiceJet offered a standard compensation of ₹200 per kilogram, capped at a maximum of ₹3,000, citing their policy for lost luggage. The passenger found this amount unacceptable and pursued the matter with the airline's management, even sending a legal notice. Dissatisfied with the response and the lack of resolution, he filed a consumer complaint, initially with the Delhi District Consumer Commission and subsequently with the Delhi State Consumer Commission.

The airline argued that passengers are informed via e-ticket terms and conditions that valuables should not be placed in checked baggage. They further contended that their liability for lost baggage is limited to ₹3,000. However, the Delhi State Consumer Commission rejected SpiceJet's arguments. The commission emphasized that the airline failed to prove that the passenger was adequately informed about the policy against carrying valuables in checked baggage. They also stated that SpiceJet had failed in its fundamental obligation to safely deliver the passenger's checked-in baggage.

The commission further noted that SpiceJet, as the custodian of the baggage, had a legal duty to ensure its safe and timely return. The failure to do so constituted a clear deficiency in service under the Consumer Protection Act, 2019, making the airline liable for compensation. The Delhi State Consumer Commission upheld the district commission's order, directing SpiceJet to pay ₹1.5 lakh for mental harassment and agony, along with ₹50,000 for litigation expenses, totaling the ₹2 lakh compensation.

This case underscores the importance of clear communication between airlines and passengers regarding baggage policies, particularly concerning valuable items. It also reinforces the rights of consumers under the Consumer Protection Act when airlines fail to fulfill their service obligations. Airlines may face significant compensation claims if they cannot demonstrate that passengers were adequately informed about restrictions on carrying valuables in checked baggage.