M/S Bhagwandas B. Ramchandani v. British Airways
PAMIDIGHANTAM SRI NARASIMHA, J .
1. Leave granted.
2.1 Carriage by Air Act, 1972, incorporates international air traffic
conventions of Warsaw, 1929, Hague Protocol, 1955, and Montréal
Convention, 1999 in the First, Second, and the Third Schedules of the
Act. Rule 30 of the Second Schedule, which incorporates the Hague
Protocol, provides that the right to damages will be extinguished if an
action is not brought within a period of two years from the dates mentioned
in the Rule. Sub-rule (2) of Rule 30 provides that the method of calculating
the period of limitation shall be determined by the law of the Court seized
of the matter. As Limitation Act, 1963 is the law applicable to the Courts
in India, it is contended on behalf of the consumers of the Airlines that
the exclusion of periods of limitation provided in the Limitation Act shall
apply for computation of the period of two years mentioned in Rule 30
(1).
2.2 Two substantial questions of law have arisen fo r our
consideration. The first relates to the applicability of the Limitation Act
when the right itself is extinguished, as against a barring of remedy, as
in the case of Section 3 of Limitation Act. The second question is whether
the provisions of the Carriage by Air Act, 1972 expressly exclude the
Limitation Act, 1963 as provided in Section 29.
549
2.3 On the first question, we have resolved the apparent conflict
between Sub-rule (1) and Sub-rule (2) of Rule 30 by referrin g to the
legislative history of the conventions as provided in the Vienna Convention
on the Law of Treaties, 1969. The travaux preparatoires leading to the
formation of the Convention establishes that the Convention sought to
exclude any interruption in the period of two years specified in the Article.
We have also followed the well-recognized principle that while
interpreting municipal laws giving effect to International Conventions,
Courts must endeavor to maintain uniformity in the interpretation in order
to sub-serve the very purpose of the Conventions. Having examined the
judgments of various jurisdictions, we are satisfied that t hey are in
consonance with the interpretation that we have adopted in construing
Sub-rule (2) of Rule 30. Sub-rule (2) in our opinion does not derogate
from the intent of Sub-rule (1) excluding the applicability of the Limitation
Act but merely empowers the Court to determine the period of two
years.
2.4 On the second question, after examining the provisions of the
Carriage by Air Act, 1972, we have held that Rule 30 expressly excludes
the Limitation Act as provided in Section 29.
Facts and Proceedings:
3. The Appellant is a sole proprietary concern engaged in the
business of imports and exports. The Appellant sent a cargo containing
fruits and vegetables from Mumbai to Canada via London by employing
services of British Airways 1 on 04.01.2010. However, on 06.01.2010
due to bad weather conditions in London the flight could not depart to
Canada, as a result the fruits and vegetables were damaged and w ere
consequently destroyed. The Appellant lodged a claim for ` 1,70,221.56/
- with the Respondent. On 30.06.2010, the Appellant once again sent a
similar cargo containing fruits and vegetables from Mumbai to Canada.
Yet again, the cargo could not be sent due to packaging and other issues
and, as a consequence, the cargo had to be destroyed. The Appellant
raised a claim dated 20.07.2010 for ` 4,27,922/-. Acknowledging the
receipt of the notice, the Respondent sent a mail on 02.11.2010 offering
to settle the matter at 50% of the claim amount.
4. It is in the above-referred background that the Ap pellant
instituted a suit being OS No. 5164/2012 on 15.09.2012 before the City
1 hereinafter referred to as the ‘Respondent’.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
Civil Court, Mumbai for recovery of the amount of ` 9,17,642.56/-, with
interest at the rate of 21% per annum 2. The Respondent filed written
statements stating inter alia that the suit is barred by limitation.
Before the Trial Court:
5. The Trial Court framed a preliminary issue on the ground of
limitation and by its judgment dated 05.02.2014 held that the suit is not
barred by limitation as the period prescribed in Rule 30 of the Second
Schedule to the Carriage by Air Act, 1972 3 could be calculated from
28.10.2010, that is, the date when the Respondent had acknowledged a
proposed settlement of the claim at 50% of the demand. For this purpose,
the Trial Court relied on Section 18 of the Limitation Act by taking it for
granted that the said Act is applicable to proceedings under the Air Act.
6. Aggrieved by the decision of the Trial Court on the preliminary
issue, Appellant filed a Writ Petition No. 6647/2014 before the Hi gh
Court of Bombay. By the judgment impugned herein, the High Court
allowed the Writ Petition holding that the suit is barred by limitation. The
reasoning adopted by the High Court is that the Air Act, 1972 b eing a
later and a special statute, will have an overriding effect over the earlier
and the general statute, being the Limitation Act, 1963.
Before the High Court:
7.1 The High Court relied on the decisions of the High Court of
Madras in M.R.F. Ltd. v. M/s Singapore Airlines Ltd. 4, M/s Air India
Bombay Airport and Another v. M/s Asia Tanning Co. and Anr. 5,
The Shipping Corporation of India Ltd., Bombay and Anr. v. Union
of India 6, The East and West Steamship Company, Georgetown,
Madras v. S.K. Ramalingam Chettiar 7, Air India Ltd. v. Tej Shoe
Exporters P. Ltd. and Anr.8 and Gulf Air Company v. Nahar Spinning
Mills Ltd. and Others 9 which took the view that Carriage by Air Act,
2 For completion of the narration, it may be stated that the appellant had initially
approached the District Consumer Forum which took the view that the transaction is
commercial in nature and therefore, it did not have the jurisdiction. The appeal and
revision against that order were also dismissed, though on the ground of delay.
3 hereinafter referred to as ‘Air Act, 1972’.
4 2014 SCC Online Mad 247.
5 2002SCC Online Mad 802.
6 2004 SCC Online Mad 489.
7 AIR 1960 SC 1058.
8 2013 SCC Online Del 3749.
9 1999 SCC Online P & H 915.
551
1972 excludes the applicability of Limitation Act. The High Court observed
that: -
“30. Thus, consistent view taken by the Apex Court and also
by various High Courts is that the Carriage by Air Act 1972,
being a special statute, enacted to give effect to the
international convention, the provisions thereof wil l have an
overriding effect. In view thereof, section 18 of the Limit ation
Act, which is a general enactment, cannot have any application
in the present case to extend the period of limitation, wh ich is
prescribed in Rule 30 of Schedule II of the Act. ”
7.2 As a consequence of such a decision, the High Court set
aside the decision of the Trial Court on the preliminary issue and held
that the suit is barred by limitation and dismissed the same.
Submissions:
8.1 Shri Vinay Navare, Senior Advocate, appearing f or the
Appellant submitted that Section 29(2) of the Limitation Act provided
that unless the Limitation Act is expressly excluded, its provision applies
to any law prescribing a distinct period of limitation. He submitted that
Rule 30 of the Second Schedule of the Air Act, 1972 has not expressly
excluded the applicability of the Limitation Act. He furthe r submitted
that Rule 30 (2) explicitly enables “ method of calculating the period
of limitation” based on the law of the Court seized of the case. On this
basis, he urged that the provisions of the statutes are complementary to
each other and must be read harmoniously. He fairly brought to our
notice the judgment of the Court of Appeal in the United Kingdom in
Laroche v. Spirit of Adventure (UK) Ltd. 10 and the judgment of the
Second Circuit of the United States Court of Appeals in Fishman v.
Delta Airlines11.In these cases, the Courts have taken the view that the
municipal laws governing the period of limitation are not to be applied
for claims made under the statutes based on international conventions.
Shri Navare distinguished these judgments on the ground that the statutory
position based on Section 29(2) of the Limitation Act read with correct
interpretation of Rule 30 of Second Schedule of the Air Act, 1972 would
stand on a different footing, and therefore these j udgments are
distinguishable.
10 (2009) EWCA Civ 12.
11 938 F. Supp. 228 (1996)
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
8.2 Ms. Ritu Singh Mann, Advocate for the Respondent-Airlines,
primarily contended that the exclusion under Section 29(2) can be implied
from the provisions of the Air Act, 1972. The Learned Counsel relied on
the judgment of this Court in Hukumdev Narain Yadav v. Lalit Narain
Mishra12. In the written submissions, for the first time, the Respondent
sought to argue that it is Rule 35 of the Third Schedule and not Rule 30
of the Second Schedule of the Air Act, 1972 which will be applicable to
the case at hand13. Our attention was also drawn to the judgments of the
Courts in United Kingdom ( Sidhu v. British Airways14, Philips v. Air
New Zealand 15), the United States of America ( Fishman v. Delta
Airlines16, Kahn v. Trans World Airlines 17) and Australia ( Bhatia v.
Malaysian Airline System Berhad 18) to buttress the submissions.
Issues:
9. In view of the rival submissions, the following issues arise for
consideration:
1. Does Limitation Act, 1963 apply to the period specified in
Rule 30 of the Second Schedule of the Carriage by Air Act,
1972?
2. Whetherthe Air Act, 1972, particularly Rule 30 of the Second
Schedule expressly excludes the applicability of th e
Limitation Act, 1963?
Issue No.1:
Does Limitation Act, 1963 apply to the period speci fied in
Rule 30 of the Second Schedule of the Carriage by Air A ct, 1972?
10. It is to be noticed that matters concerning the internationa l
carriage of persons, baggage, or cargo performed by aircraft for reward
are the subject matter of International Conventions . These are
12 (1974) 3 SCR 31.
13 The submission of the Respondent, taken for the first time in the written submission
that it is Section 4A and the Third Schedule of the Act , which is applicable need not
detain us as there is virtually no difference between Rule 35 of the Third Schedule and
Rule 30 of the Second Schedule. We will therefore proceed based on Second Schedule
only.
14 [1997] 1 All ER 193
15 (2002) EWHC 800 (Commercial Court).
16 Supra no. 11.
17 82 A.D. 2d 696: (1981) 443 NYS 2d 79.
18 (2018) FCA 1471.
553
incorporated into our laws through the Schedules to theAir Act, 1972.
Section 319 of the Air Act, 1972 incorporates the Warsaw Convention,
192920 into the First Schedule and specifically provides that it shall
have the status of law in India. Section 4 21 incorporates the Hague
Protocol dated 28.09.1955 and provisions it in the Second Schedule
and gives it the status of law in India. Similarly, Section 4A22 brought
into force in 2009 for giving effect to the Montréal Convention, 199923
incorporates it in the Third Schedule to the Act and gives it the status
of law in India.
11. Chapter III of the Second Schedule relates to, ‘ Liability of
the Carrier’, which recognizes the principle of International Law of lex
fori, as per which suits and proceedings in the judicial for a of the member
nations are to be governed by the law of the Court in which the proceeding
is instituted24. This principle is recognized by Rule 29(2) of the Second
Schedule itself;
“Rule 29. (1) An action for damages must be brought, at the
option of the plaintiff, in the territory of one of the High
Contracting Parties, either before the Court having
jurisdiction where the carrier is ordinarily reside nt, or has
19 Section 3 : Application of Convention to India
(1) The rules contained in the First Schedule, being the provisions of the Convention
relating to the rights and liabilities of carriers, passengers, consignors, consignees,
and other persons, shall, subject to the provisions of this Act, have the force of law in
India in relation to any carriage by air to which those rul es apply, irrespective of the
nationality of the aircraft performing the carriage.
20Convention for the Unification of Certain Rules Relating to International Carriage by
Air, Signed at Warsaw on 12 October 1929.
21Section 4 : Application of amended Convention to India
(1) The rules contained in the Second Schedule, being the provisions of the amended
Convention relating to the rights and liabilities of c arriers, passengers, consignors,
consignees and other persons, shall, subject to the provisions of this Act, have the force
of law in India in relation to any carriage by air to which those rules apply, irrespective
of the nationality of the aircraft performing the carriage.”
22Section 4A : Application of Montreal Convention to India
(1) The rules contained in the Third Schedule, being the provisions of the Montreal
Convention relating to the rights and liabilities of c arriers, passengers, consignors,
consignees, and other persons, shall, subject to the provisions of this Act, have the force
of law in India in relation to any carriage by air to which those rules apply, irrespective
of the nationality of the aircraft performing the carriage
23Convention for the Unification of Certain Rules Relating to International Carriage by
Air, Signed at Montreal on 28 May, 1999.
24 Rukmaboye v. LulloobhoyMotichand (1935) 5 HIA 234.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
his principal place of business, or has an establis hment by
which the contract has been made or before the Court have
jurisdiction at the place of destination.
(2) Question of procedure shall be governed by the law of the
Court seized of the case .”
12. The procedural law governing the institution and adjudication
of civil suits in India includes the Civil Procedure Code, 1908 as well as
the Limitation Act, 1963. The Limitation Act is a branch of a djectival
law, and applies to all proceedings which it governs from the date of its
enactment. There is however a well-established principle, which states
that when the right itself is extinguished, the provisions relating to limitation
have no application. A direct example where the right itself is extinguished,
can be evidenced in Section 1125 as well as Section 2726 of the Limitation
Act, 1963. Section 11 deals with suits filed in India with resp ect to
contracts entered in foreign countries. Following the Principl e of lex
fori, the Section provides that rules of limitation provided in a forei gn
jurisdiction are not applicable. However, the exception to thi s Rule is
provided in Section 11 (2)(a), when the Contract i.e., the right it self
expires. Similarly, Section 27 also recognizes the principle of
extinguishment of Right to Property being an exception to the
applicability of the Limitation Act, 1963.
13.1 The distinction between barring a remedy as exception is
well established, as can be seen in the following p recedents. The
extinguishment of the right and its effect on limitation is well recognized
by courts of law. We may refer to some of the important prec edents.
25 Section 11. Suits on contracts entered into outside th e territories to which the
Act extends
(1) Suits instituted in the territories to which this Act extends on contracts entered into in
the State of Jammu and Kashmir or in a foreign country shall be subject to the rules of
limitation contained in this Act.
(2) No rule of limitation in force in the State of Ja mmu and Kashmir or in a foreign
country shall be a defence to a suit instituted in the said territories on a contract entered
into in that State or in a foreign country unless-
(a) the rule has extinguished the contract; and
(b) the parties were domiciled in that State or in the foreign country during the
period prescribed by such rule.
26 Section 27. Extinguishment of right to property
At the determination of the period hereby limited to any person for instituting a suit for
possession of any property, his right to such property shall be extinguished.
555
13.2 A similar issue as in the present case, arose for consideration
in TheEast and West Steamship Company v. S.K. Ramaling am
Chettiar27, where this Court had to consider 3 rd Clause of Para 6 of
Article III in Schedule to the Indian Carriage of Goods by Sea Ac t,
192528 wherein, while interpreting the expression discharge from the
liability, this Court held as under: -
“….The question we have to decide is whether in saying that
the ship or the carrier will be “discharged from li ability”,
only the remedy of the shipper or the consignee was being
barred or the right was also being terminated. It is useful to
remember in this connection the international chara cter of
these rules, as has been already emphasized above. Rule s of
limitation are likely to vary from country to country. Provisions
for extension of periods prescribed for limitation would
similarly vary. We should be slow therefore to put on the word
“discharged from liability” an interpretation which would
produce results varying in different countries and thus keep ing
the position uncertain for both the shipper and the shipowner .
Quite apart from this consideration, however, we th ink that
the ordinary grammatical sense of “discharged from liabil ity”
does not connote “free from the remedy as regards liabili ty”
but are more apt to mean a total extinction of the liability
following upon an extinction of the right. We find it d ifficult
to draw any reasonable distinction between the word s
“absolved from liability” and “discharged from liability” and
think that these words “discharged from liability” were
intended to mean and do mean that the liability has totally
disappeared and not only that the remedy as regards the
liability has disappeared. We cannot agree with the learned
Judge of the Madras High Court that these words merely mean
that “that even though the right may inhere in the person
who is entitled to the benefits, still the liability in the opposite
party is discharged by the impossibility of enforce ment.”The
27 Supra no. 7.
28 "In any event the carrier and the ship shall be discharged from all liability in respect
of loss or damage unless suit is brought within one year after the delivery of the goods
or the date when the goods should have been delivered.”
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
distinction between the extinction of a right and the extincti on
of a remedy for the enforcement of that right, though fin e, is
of great importance. The Legislature could not but have been
conscious of this distinction when using the words
“discharged from all liability” in an article purpo rting to
prescribe rights and immunities of the shipowners. The words
are apt to express an intention of total extinction of the liabilit y
and should, specially in view of the international character
of the legislation, be construed in that sense. It is hardly
necessary to add that once the liability is extinguished under
this clause, there is no scope of any acknowledgmen t of
liability thereafter. ”
13.3 In RM. AR. AR. RM. AR. Ramanathan Chkttiar and others
v. K.M.CL.M. Somasundaram Chettiar and Ors. 29, it was held as
follows: -
“It is a well-accepted rule of International Law that all matters
of procedure will be governed by the law of the coun try in
which the Court where any legal proceeding is initi ated is
situate. Statutes of limitation in so far as they prescribe perio ds
within which claim should be enforced, whereby the remedy
alone is barred, are regarded as merely procedural.
But there may be provisions in such statutes which extinguish
the rights of the parties. S. 28 of the Indian Limitation Act is
an instance where on the remedy being barred the ri ght to
property also stands extinguished. In such a case, that is,
where there is no right alive by reason of its extingu ishment
by a statute there could obviously be nothing to be enfor ced
in that country or in any foreign country. Provisio ns of that
kind cannot be regarded as merely procedural as they create
or destroy substantive rights of parties. This principle has
been recognised in a statutory-form in S. 11 (2) of the Indian
Limitation Act.”
13.4 In Punjab National Bank and others v. Surendra Prasad
Sinha30, this Court held:
29 (1964) 77 LW 399.
30 1993 Supp (1) SCC 499.
557
“5. …The rules of limitation are not meant to destroy the rights
of the parties. Section 3 of the Limitation Act 36 of 1963, for
short “the Act” only bars theremedy, but does not destroy the
right which the remedy relates to . The right to the debt
continues to exist notwithstanding the remedy is ba rred by
the limitation. Only exception in which the remedy also
becomes barred by limitation is that the right itself is destroyed.
For example, under Section 27 of the Act a suit for possessi on
of any property becoming barred by limitation, the right to
property itself is destroyed. Except in such cases which are
specially provided under the right to which remedy relate s in
other case the right subsists. Though, the right to enforce the
debt by judicial process is barred under Section 3 rea d with
the relevant article in the schedule, the right to debt remains .
The time barred debt does not cease to exist by rea son of
Section 3. That right canbe exercised in any other manner
than by means of a suit. The debt is not extinguished, but the
remedy to enforce the liability is destroyed. What S ection 3
refers is only to the remedy but not to the right of the cre ditors.
Such debt continues to subsist so long as it is not paid….”
13.5 The principles laid down in the above referred precedents
are consistently followed in decisions of this Court in Khadi Gram Udyog
Trust v. Ram Chandraji Virajman Mandir 31, State of Kerela and Ors.
31 (1978) 1 SCC44.
“4. ……There is ample authority for the proposition that though a debt is time-barred,
it will be a debt due though not recoverable, the re lief being barred by limitation.
In Halsbury’s Laws of England (Third Edn.) Vol. 24 at p. 205, Article 369, it is stated
“except in the cases previously mentioned, the Limitation Act, 1939 only takes away the
remedies by action or by set-off; it leaves the right otherwise untouched and if a creditor
whose debt is statute-barred has any means of enforcing his claim other than by action
or set-off, the Act does not prevent him from recovering by those means”. The Court of
appeal in Curwen v. Milburn [(1889) 42 Ch D 424] Cotton , LJ said:”Statute-barred
debts are dues, though payment of them cannot beenfo rced by action.”The same view
was expressed by the Supreme Court in Bombay Dyeing and Manufacturing Co. Ltd.
v. State of Bombay [AIR 1958 SC 328: 1958 SCR1122 : (1958) 1 Lab LJ 778] where it
held that the statute limitation only bars the remedy bu t does not extinguish the debt,
except in cases provided for by Section 28 of the Limitation Act, which does not apply to
a debt.”
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
v. V.R. Kalliyanikutty and Anr. 32 and also in Prem Singh and Ors. v.
Birbal and Ors. 33.
14. In view of the well-established position of law relating to Lex
Fori in International Law, with the equally well-established exception
arising out of the extinguishment of the right or the liability itself, we will
now examine the position in India as per Rule 30 in the Second Schedule
of the Air Act, 1972 relating to liability of the carrier. Rule 30 is of the
Air Act, 1972 is extracted as under:-
“30. (1) The right to damages shall be extinguished if an action
is not brought within two years, reckoned from the date of
arrival at the destination, or from the date on which the aircraft
ought to have arrived , or from the date on which the carriage
stopped.
(2) The method of calculating the period of limitat ion shall
be determined by the law of the Court seized of the case. ”
Analysis of Sub-Rule (1) of Rule 30 :
15.1 While Rule 29 speaks about judicial remedy for initiating an
action for damages, Rule 30 uses the expression right to damages. It is
32 (1999) 3 SCC 657
“15. It has been submitted before us that the statute of limitation merely bars the remedy
without touching the right. Therefore, the right to recover the loan would remain even
though the remedy by way of a suit would be time-barred. Reliance was placed on Khadi
Gram Udyog Trust v. Ram ChandrajiVirajman Mandir, (1 978) 1 SCC 44 in this
connection. The Court there observed that though a debt may be time-barred, it would
still be a debt due. The right remains untouched and i f a creditor has any means of
enforcing his right other than by action or set-off, he is not prevented from doing so.
In Punjab National Bank v. Surendra Prasad Sinha [1993 Supp (1) SCC 499] this
Court held that the rules of limitation are not mean t to destroy the rights of parties.
Section 3 of the Limitation Act only bars the remedy but does not destroy the right which
the remedy relates to. Excepting cases which are specifically provided for, as for example,
under Section 27 of the Limitation Act, the right to w hich the remedy relates subsists.
Though the right to enforce the debt by judicial pro cess is barred, that right can be
exercised in any manner other than by means of a suit. For example, a creditor’s right
to make adjustment against time-barred debts exists.”
33 (2006) 5 SCC 353.
“11. Limitation is a statute of repose. It ordinarily bars a remedy, but, does not extinguish
a right. The only exception to the said rule is to be found in Section27 of the Limitation
Act, 1963 which provides that at the determination of the period prescribed thereby,
limited to any person for instituting a suit for possess ion of any property, his right to
such property shall be extinguished.”
559
in the context of right as against a remedy that the purpose, object and
meaning of Rule 30 is to be understood. Further, Rule 30 also uses the
expression “extinguishment” as against “bar”, which is generally used
in the context of a remedy. Therefore, the extinguishment is of right,
that is, the right to damages is the subject matter of Sub-Rule (1) of
Rule 30. The expressions, ‘right’ and ‘extinguished’ employed by the
Convention as adopted and incorporated by the Parliament in Rule 30 of
the Second Schedule clearly establishes the intention of th e law-giver
that the right to damages would not subsist after the expiry of the
period mentioned therein.
15.2 Once the right to damages is extinguished upon the expiry of
two years reckoned from the three alternative dates mentione d in the
Rule itself, nothing would remain for enforcement. Section 3 of t he
Limitation Act only bars the remedy, but when the r ight itself is
extinguished, provisions of the Limitation Act have no application. For
this reason, in The East and West Steamship Co.34, this Court held that
once the right of liability is extinguished under the clause, th ere is no
scope of acknowledging the liability thereafter.
15.3 This is the position of law is obtained from the plain language
of Sub-Rule (1) of Rule 30. The position is however very different when
we proceed further to consider Sub-Rule(2) of Rule 30.
Sub-Rule (2) of Rule 30 :
16.1 Sub-Rule (2) is extracted as under: -
“(2) The method of calculating the period of limitation shal l
be determined by the law of the Court seized of the case.”
16.2 In its plain and simple language, Sub-Rule (2) seems to adopt
the applicability of the Limitation Act, 1963 as Courts in India exercise
jurisdiction. ‘The method of calculating the period specified in Sub-
rule (2)naturally relates to the period ’ specified in Sub-rule (1). Sub-
Rule (1) identifies and fixes two incidents. The period of limitation and
the date of commencement of the said period (the three specified dates).
Therefore, when the period of limitation, as well a s the date of
commencement of the said period, are already given, the method of
calculation of the period of limitation contemplated under Sub-Rule
(2) must relate to some other factor. However, without spec ifying the
34 Supra no. 7.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
variable to which the method of calculating the period, is to apply, Sub-
rule (2) merely provides that it “shall be determined by the law
applicable to the Court seized of the case.” This has caused uncertainty
about the intent of the lawmakers, be it the Convention or Rule 30 of the
Second Schedule of the Act.
16.3 Further, the expression in Rule 30(2)calculating the period
of limitation is synonymous to the expression computation of period of
limitation provided in Part-III of the Limitation Act, 1963. Part-III which
relates to the exclusion of certain time periods is to su b-serve a just
cause based on public policy which recognizes human vulnerabili ties.
Broadly, these periods relate to (i) the date from which the period is to
be reckoned (Section 12); (ii) the time taken for seeking to contest as a
pauper, (Section 13); (iii)the bona fide period involved in the perusal of
a remedying the wrong Court(Section 14);(iv) fraud (Section 17); ( v)
acknowledgment of debt (Section 18); (vi) admitted payments on account
of debt (Section 19); (vii)continuous breach etc. These are the periods
that can be excluded while computing the period of limitation under the
Limitation Act, 1963.
17.1 It is in the above-referred context that Shri Navare, learned
counsel appearing on behalf of the Appellant has em phasized the
affirmation of the Limitation Act to proceedings under the Air Act, 1972
as per the plain language of Rule 30(2) and submitted that the expression,
‘method of calculating limitation period’ in Rule 30(2) is akin to the
expression ‘for the purpose of determining any period of limitation’
provided in Section 29(2) of the Limitation Act. He contends th at the
Sub-Rule (2) of Rule 30 specifically incorporates Limitation Act into the
legal regime of the Air Act, 1972.
17.2 On the other hand, Ms. Ritu Singh Mann, relied on Section
29(2) of the Limitation Act to submit that the provisions of the Limitation
Act are expressly excluded by the special law of the Air Act, 1972. The
written submissions emphasized the purpose and obje ct of the
International Conventions, which provided for ‘collective State action
for further harmonization and codification of certa in rules
governing international carriage by Air’ . It is then submitted that if
courts of every signatory state were to interpret the provis ions of the
Convention in their own way, then the very purpose of achieving uniformity
561
in application of the Conventions would be lost. For the first time in the
written submissions, the Respondent has taken a plea that it is Rule 35
of the Third Schedule and not Rule 30 which will be applicable. However,
on consideration we do not find any notable difference between the two
and hence, we would proceed to refer Rule 30 of the Second Schedule
in our further analysis.
18. The rival submissions surface due to an apparent conflict
between Sub-Rule (1) and Sub-Rule (2) of Rule 30 of the Second
Schedule. While Sub-Rule (1) extinguishes the right itself upon th e
expiry of the period of two years, after which nothing would r emain
for enforcement, Sub-Rule (2) seems to suggest that the Court seized
of the case can apply the law of limitation applicable to its proceedings
and entertain the suit of the proceedings. We will now analyze and
interpret Rule 30 of the Second Schedule.
19.1 However, before we proceed to interpret Rule 30 , it is
necessary to clear certain doubts about the applicability of the correct
Schedule. While the suit was instituted on the assumption that it is Rule
30 of the Second Schedule adopting the Warsaw Convention, 1929 as
amended by the Hague Protocol, 1955 would be applic able to the
proceedings, the Trial as well as the High Court and even the parties
assumed that this is the correct Rule that would apply to the facts of the
case. It is for the first time in the written submission that the Respondent
stated that it is Rule 35 of the Third Schedule of the Montréal Convention,
1999 that will apply to the facts of the case. The change in the stand is
apparently due to the deletion of two words “of limitation” occurring in
Sub-Rule (2) of the Second Schedule from the same provision introduced
under Rule 35 of the Third Schedule. Based on this minor change the
Appellant advanced an argument in the written submission t hat the
conscious deletion of the expression “of limitation” clarifies the position
that Sub-Rule (2) only relates to a period of two years and ha s got
nothing to do with “a period of limitation” and therefore, the Limitation
Act has no application.
19.2 A comparative statement of the Third Schedule relatable to
the Warsaw Convention, 1929, Warsaw Convention as amended b y
Hague Protocol, 1955, and the Montréal Convention of 1999 is reproduced
herein for ready reference: -
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
Rule 29 Schedule I
(Article 29 of the Warsaw
Convention, 1929)
The right of damages shall be
extinguished if an action is not
brought within two years,
reckoned from the date of
arrival at the destination, or
from the date on which the
aircraft ought to have arrived,
or from the date on which the
carriage stopped.
Rule 30 Schedule II (Article
29 of the Warsaw Convention
as amended by Hague
Protocol, 1955)
(1) The right to damages shall
be extinguished if an action is
not brought within two years,
reckoned from the date of
arrival at the destination, or
from the date on which the
aircraft ought to have arrived,
or from the date on which the
carriage stopped.
(2) The method of calculating
the period of limitation shall
be determined by the law of
the Court seized of the case.
Rule 35 Schedule III (Article
35 of the Montreal Convention,
1999)
(1) The right to damages shall
be extinguished if an action is
not brought within a period of
two years , reckoned from the
date of arrival at the
destination, or from the date
on which the aircraft ought to
have arrived, or from the date
on which the carriage stopped.
(2) The method of calculating
the period shall be determined
by the law of the Court seized
of the case.
19.3 It would be apparent from the above that even after t he
deletion of the expression “of limitation” in the Montréal Convention of
1999, the difficulty persists in as much as Sub-Rule(2) talk s about the
method of “calculating the period” and as such a period must necessarily
relate to the period of two years as specified in Sub-Rule (1) of Rule 30.
Calculation of the period for an action for damages would necessa rily
involve law of Limitation as that is an adjective statute governing suits
and other proceedings instituted in India. Even assuming that the deletion
of the expression brings more clarity to the scope and ambit of the Rule,
that will be confined to Rule 35(2) of the Third Schedule and the difficulty
would continue to prevail with respect to the period during which Rule
30 of the Second Schedule operates. It is, therefore, compelling and the
primary duty of the Court to analyze, interpret and declare the true and
correct meaning of the said provision.
Interpretation
20. Our task is to decipher and declare the correct meaning and
purport of Rule 30 of the Second Schedule of the Act. Schedule Two of
the Act merely incorporates the Warsaw Convention, as amended by
the Hague Protocol, 1955. It is well known that incorporatio n of a
Convention or a treaty into municipal laws is normally carri ed out in
three ways and the status that it enjoys depends on the nature of
incorporation. Referring to the Use of International treaties in Part
XIV under Section 221, Francis Bennion35 observed as under:
35 See, Bennion on Statutory Interpretation, 6th Edition, 2013. [Part XIV: The Informed
Interpretation Rule (Legislative History), pg. 632.]
563
“(1) An international treaty may have three differen t kinds
of status, considered as a source of law-
(a) an Act may embody, whether or not in the same
words, provisions having the effect of the treaty
(in this Code referred to as direct enactment of
the treaty);
(b) an Act may say that the treaty is itself to have
effect as law, leaving the treaty’s provisions to
apply with or without modification (in this Code
referred to as indirect enactment of the treaty);
(c) the treaty may be left simply as an international
obligation, being referred to in the construction
of a relevant enactment only so far as called for
by the presumption that Parliament intends to
comply with public international law.
(2) Whichever status a treaty has, its provisions ma y be
referred to as an aid in the interpretation of a relevant
enactment. So too may its preparatory work (travaux
preparatoires), the decision on it of foreign court s (la
jurisprudence) and the views on it of foreign jurists (la
doctrine).”
21. Vienna Convention on Law of Treaties, 1969 can be referred
to as a “ treaty on treaties” . It establishes comprehensive rules,
procedures, and guidelines for how treaties are defined, drafted, amended,
interpreted, and generally operated. Section 3 of Vienna Convention
relates to interpretation of treaties , of which Articles 31 and 32 are
relevant for our purposes and are extracted herein below for ready
reference.
“SECTION 3. INTERPRETATION OF TREATIES
Article 31: General rule of interpretation
1. A treaty shall be interpreted in good faith in a ccordance
with the ordinary meaning to be given to the terms of the
treaty in their context and in the light of its object and purpose.
2. The context for the purpose of the interpretation of a treaty
shall comprise, in addition to the text, including its preambl e
and annexes:
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
(a) any agreement relating to the treaty which was made
between all the parties in connection with the conclu sion
of the treaty;
(b) any instrument which was made by one or more parties
in connection with the conclusion of the treaty and accepted
by the other parties as an instrument related to the treaty.
3. There shall be taken into account, together with the contex t:
(a) any subsequent agreement between the parties regarding
the interpretation of the treaty or the application of its
provisions;
(b) any subsequent practice in the application of the treaty
which establishes the agreement of the parties rega rding
its interpretation;
(c) any relevant rules of international law applica ble in
the relations between the parties.
4. A special meaning shall be given to a term if it is estab lished
that the parties so intended.”
22. Apart from Article 31, it is also important for us to note Article
32 which relates to “Supplementary means of Interpretation”.
“Article 32: Supplementary means of interpretation
Recourse may be had to supplementary means of
interpretation, including the preparatory work of th e treaty
and the circumstances of its conclusion, in order t o confirm
the meaning resulting from the application of article 31, or to
determine the meaning when the interpretation accor ding to
article 31:
(a) leaves the meaning ambiguous or obscure; or
(b) leads to a result which is manifestly absurd or
unreasonable.”
23. When statutes are enacted to give effect to a t reaty or
convention, Articles 31 and 32 of the Vienna Convention becomes
relevant for interpretation of such statutes 36.The court must be
36 R v. Secretary of State for the Home Department exparte Adan, (1999) 4 All ER 774.
p. 785 (CA);
565
untrammeled by notions of its national legal culture, for the true,
autonomous and international meaning of the treaty. And, there can only
be one true meaning.37 One event of adaptation of this method occurred
in the case of Fothergill v. Monarch Airlines 38, in construing the
Carriage by Air Act, 196139 in the United Kingdom which was enacted
to give effect to the Warsaw Convention. The House of Lords held that
in dealing with such an Act, a purposive construction should be applied
and reference could be made to the opinion of international j urists as
also to travaux preparatoires of the convention in a limited sense. 40
24. Following Article 32 authorizing recourse to supplementary
means of interpretation, including preparatory works of a treaty, we will
now proceed to examine the legislative history of Article 29 of the Warsaw
Convention, 1929 which eventually was modified in 1955 in the Hauge
Protocol and thereafter by the Montréal Convention in 1999. The original
draft of this clause as of 1929 occurred as Article 28 was as under:
“28. The right of damages shall be extinguished if an action
is not brought within two years, reckoned from the date of
arrival at the destination, or from the date on whi ch the
aircraft ought to have arrived, or from the date on which the
carriage stopped.
(2)”the manner of calculating the period of limitation, as we ll
as the causes for suspension and interruption of th e period
of limitation, shall be determined by the law of th e forum
court.”
25.1 The above draft fell for consideration before it was adopted
in the convention as Article 29. The member States delibe rated on the
proposed Articles of the Carriage by Air Convention between 4th to 12th
October, 1929 in Warsaw. During the process, the members deliberated
on Article 28 on 07.10.1929. At that time, Republic of Italy raised the
following objection with respect to the draft Article:
37 R. (on the application of Mullen) v. Secretary of Sta te for the Home Department
(2004) 1 All ER 65, p. 84)
See further, Justice G.P. Singh, Principles of Statutory I nterpretation. 14 th Edition, pg
693.
38 (1980) 2 All ER 696.
39 The Act sets out the convention in a schedule in two parts. Part I sets out the English
text and Part II, the French text. In case of inconsistency, the Act says that the French
text is to prevail.
40(1980) 2 All ER 696: (1981) AC 251.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
“The period of time, in order that there be interruption of the
period of limitation, varies with the country, and it is very
difficult for the shipper, the consignor to know wh en the
interruption or the suspension begins. Despite the period of
two years fixed for the period of limitation, he mu st always
wait until this period of limitation runs and this perio d of two
years which is necessary to give some kind of tranq uility is
modified.
Moreover, the system which we have proposed becomes ve ry
simple; if two years after the accident no action h as been
brought, all actions are extinguished. As a consequen ce, the
second paragraph would disappear, and it would be
necessary to modify the first paragraph in adding some words
to better render the formula. We get across the meaning, bu t,
from the French point of view, perhaps the wording needs to
be reexamined. ”41
It was further elaborated in their memo that:
“If one considers that the period of limitation is long enou gh
and that, particularly taking into account the caus es of
suspension, it may, according to the law of several coun tries,
be prolonged indefinitely, it’s not a good idea to refer the
determination of the aforementioned causes to the law of t he
court chosen by the plaintiff. Perhaps the law of the aircraft’ s
nationality could constitute a surer and more just element of
determination vis a vis the carrier. The above-cite d
disadvantages could be eliminated in a more radical fashio n
in substituting for the period of limitation a period of forfeiture.
This would render the second paragraph useless. Mor eover,
one must add, after the word ‘instituted’ the phras e ‘under
penalty of forfeiture’ 42.”
25.2 Their objection stemmed from the concerns expressed by
shippers, who would be subjected to multiple jurisdictions without any
clarity with respect to the position of law in each jurisdiction. It is in this
context, that the Italian Delegation sought amendment of Artic le 29
seeking immunity from interference on the ground of limitation, which
41 Robert C.; Legrez Horner, Didier, Translators. Second I nternational Conference on
Private Aeronautical Law, October 4-12, 1929, Warsaw: Minu tes (1975) at p.110.
42 Ibid. Pg 112-113.
567
varies from jurisdiction to jurisdiction, causing great amount of uncertainty.
In reply, the Delegation from France stated:
“MR. RIPERT (France): I am not at all opposed to the Ital ian
proposal, but it is aimed, in the final analysis, o nly at the
causes of suspension of the period of limitation, wh ich must
disappear. It must, all the same, be indicated that it’s the law
of the forum court which will fix how, within the p eriod of
two years, the court will be seized, because in all the countries
of the world suits are not brought in the same way.
One has to act within two years; who will fix the beginning of
the suit? A text is necessary which says that it wi ll be the
forum court which will say if the suit was properly beg un. In
France, there is the pretrial conference; in other co untries
referral to the civil court is indispensable; but I am very much
of the opinion that we must eliminate the interruption of the
period of limitation, and I ally myself with the Italian proposal.
MR. MOTONO (Japan): I’d like to point out one question of
wording. The liability action means interruption of the peri od
of limitation.
MR. RIPERT (France): Exactly, it’s because the suit is not
introduced in all countries in the same way that it has to be,
that the forum court will indicate how it must be introduced. ”43
25.3 After the deliberations, Sub-Article (2) was modified and in
its place, the following clause was inserted and the Convention wa s
brought into force. Thus, Article 29 in its present form is as under:
“Article 29
1. The right to damages shall be extinguished if an action is
not brought within two years, reckoned from the date of arriva l
at the destination, or from the date on which the aircraft ought
to have arrived, or from the date on which the carr iage
stopped.
2. The method of calculating the period of limitation shall be
determined by the law of the Court seized of the case.”
26. We must at this stage mention a minor fact, which has no
bearing on the issue that we are concerned with but it i s necessary to
make a reference to it. We have noticed that sub-article (2) of Article 29
43 Ibidpg 111.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
of the Warsaw Convention, 1929 does not find place in Rule 29 as
incorporated in Schedule I of the Indian Carriage by Air Act, 1934. After
independence, when the Parliament enacted the Carriage by Air Ac t,
1972, after repealing the 1934 Act and incorporated the Warsaw
Convention, 1929 in First Schedule. Here also sub-article (2) of the
Warsaw Convention is missing in Rule 29. However, Second Schedule
incorporating the Warsaw Convention, as amended by the Hague
Protocol, 1955 consisting of the Article 29 (1) and (2) is fully incorporated
in Rules 30 (1) and (2) in the Second Schedule. We need not say anything
more than this after noting the minor variation.
27. The legislative history of the Warsaw Convention coupled
with the deliberations at the International Conferences as a result of
which the draft got modified and took the shape as it stood in Article 29
of the Convention, lends sufficient clarity to the purpose and object of
introducing sub-article (2) to Article 29, which is to exclude the suspension
of any period of limitation. As noticed in the conference, suits a re not
brought in the same way across jurisdictions and therefore this deliberation
is specifically left to the forum Court to fix and determine the beginning
of the suit or the proceeding.
28. This position is well articulated in the judgment of the Appellate
Division of the Supreme Court of New York in Kahn v. Trans World
Airlines 44.
“Moreover, it is equally clear from the delegates’ dis cussion
that the only matter to be referred to the forum co urt by
paragraph 2 of the present article 29 was the determi nation
of whether the plaintiff had taken the necessary me asures
within the two year period to invoke that particular court’s
jurisdiction over the action. An obvious example of th e need
for such a provision is the difference between the met hod of
commencing an action in the New York State courts as opposed
to the Federal courts. Thus, in New York, depending upon
the forum chosen, the plaintiff in an action govern ed by the
Warsaw Convention must either effect service upon t he
defendant (CPLR 304) or file a complaint in the Fed eral
District Court (Fed Rules Civ Pro, rule 3 [in US Code, tit 28,
Appendix] within the time limited by article 29, i.e., t wo years.
44 Supra no. 17.
569
Accordingly, regardless of whether or not the Convention itsel f
“creates” any causes of action, it is readily apparent that the
time limitation incorporated in article 29 was intended to be
in the nature of a condition precedent to suit, and that it was
never intended to be extended or tolled by infancy or other
incapacity. In addition, such an intent on the part of the
draftsmen is fully consistent with one of the Convention’s ov er-
all purposes-that of establishing “a uniform body o f world-
wide liability rules to govern international aviation .”
29. In view of the uncertainty in the language of sub-article (2) of
Article 29, as in the case of Sub-Rule (2) of Rule 30 for India, courts of
law across jurisdictions were called upon to consider the rival submissions
on the construct of the said provision. Learned counsels appearing for
both the parties have placed before us the decisions of forei gn courts
that have ruled upon Article 29 and interpreted the said provision, more
or less consistently taking a view that the domestic laws of limitation will
have no bearing on the period of two years. Before we consid er these
judgments, it is important to restate a well-recognized principle that courts
of law must endeavor to maintain a uniformity of interpreta tion with
courts of other jurisdictions while interpreting international treaties and
conventions.
30. The need for a uniform policy and a global approach has been
underlined by the House of Lords in Morris v. KLM Royal Dutch
Airlines45 and in a number of other decisions. 46
“81. In an ideal world the Convention should be acco rded
the same meaning by all who are party to it. So, ca se law
provides a further potential source of evidence. Ca reful
consideration needs to be given to the reasoning of court s of
other jurisdictions which have been called upon to deal with
the point at issue, particularly those which are of high
standing. Considerable weight should be given to an
interpretation which has received general acceptance in othe r
jurisdictions. On the other hand, a discriminating approach
is required if the decisions conflict, or if there is no clear
agreement between them.”
45 [2001] 3 WLR 351
46 Zicherman v. Korean Air Lines Co. Ltd., 516 US 217, (1996), EI AI Israel Airlines
Ltd. V. T.Y.Tseng 525 U.S. 155 (1999).
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
31. Having said so, we will now refer to some leading judgments
on the issue from the jurisdictions of the United Kingdom, United States
of America and Australia which examined Article 29 of the War saw
Convention.
United Kingdom
32. The Supreme Court of the United Kingdom passed a judgment
in Laroche v. Spirit of Adventure 47 where it examined the history of
Article 29 of the Warsaw Convention and held that i t provided a
substantive time bar and not a procedural time bar. It f urther held that
the Warsaw Convention provides a code that is exclusive of any resort
to the Articles of domestic law. The Court traced the hist ory of the
provision as above and ultimately held that the Warsaw Convention sought
to adopt the position suggested by the Republic of Italy. It was held,
“70. The judge was in my view, right to hold at [48] to [51]
that article 29(2) does not permit the 2 year perio d to be
suspended, interrupted or extended by reference to domestic
law. The only thing that it leaves for determinatio n by the
court seized of the case is the calculation of the preci se dates
of the beginning and end of the relevant two year period and
the determination of whether the action has been br ought
within that two year period.
71. In reaching his conclusion on this issue, the j udge had
regard to what was said in the travaux preparatoires to the
Warsaw Convention in relation to what became articl e 29.
The first draft of what became article 29(2) was in these terms:
“The method of calculating the period of limitation, as well
as the causes of suspension and interruption of the perio d
of limitation, shall be determined by the law of the c ourt
having taken jurisdiction” (emphasis added).
72. The Italian delegation objected that the words in italics
made “the legal situation of the carrier too uncertain”. The
Italians later proposed deleting the second paragraph so that
“after two years any action dies and is no longer admissible” .
Their reasoning was that “the period of time, in ord er that
there be interruption of the period of limitation, varies with
47 Supra no. 10.
571
the country, and it is very difficult for the shipp er, the
consignor to know when the interruption or the suspe nsion
begins”. Their proposal was “very simple; if two year s after
the accident no action has been brought, all action s are
extinguished”. After further discussion, the Italia n proposal
was adopted. These discussions were in plenary sess ion. It
seems that the matter was raised again in committee, when it
was decided to accept the modified Italian proposal to adopt
the wording “the liability action must be instituted under pa in
of forfeiture within a period of two years”. Despit e the
puzzling French contribution at that stage that “on e
determines at the same time the periods of interrup tion and
of limitation. We are in agreement in substance”, th e Italian
proposal was adopted. There was then yet further discussio n
which led to the adoption of article 29 in the form in which it
was finally signed.
73. Although it is difficult to follow the minutiae of these
negotiations, in my view it is clear that the signatories t o the
Warsaw Convention intended to adopt the Italian pro posal
that, in the interests of certainty, at the expiry of th e two-year
period, all claims under the Convention would be
“extinguished” and that the only matters for determ ination
by the court seized of the matter would be determin ation of
the dates and whether the action was brought within the two-
year period. This is a powerful indicator that the words of
article 29(1) mean what they say and that the two-year period
is not subject to suspension, interruption or extensi on in any
circumstances.
74. So to interpret article 29(1) would also further the object
of the Convention that it was to be “a uniform internatio nal
code, which could be applied by the courts of all t he high
contracting parties without reference to the rules of their own
domestic law”: see per Lord Hope in Sidhu v British Airways
Plc [1997] AC 430, 453C-D.
75. I also accept the submission of Mr Lawson that this
interpretation is consistent with the rule that a g eneral
provision (such as article 29(2)) cannot give validity to a rule
of procedure of the court seized of the case that is in co nflict
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
with an express provision of the Convention. As Phi llips LJ
said in Milor S.R.L v British Airways Plc [1996] QB 702,
707E: “by way of example, if the procedural law of the cho sen
forum imposed a 12 month limitation period, it does not seem
to me that this could displace the two year period of limit ation
laid down by article 29 of the Convention.
76. As regards US jurisprudence, the decision of New Pentax
v Trans World relied on by Mr Davey is a first inst ance
decision. In the subsequent decision of Fishman v De lta Air
Lines Inc 132 F 3d 138, the Court of Appeal of the same
circuit rejected the proposition that article 29(2) permitted
the limitation period to be determined in accordance with the
lex fori. In reaching this conclusion, the court had reg ard to
the travaux preparatoires to the Warsaw Convention and
reached the same conclusion on their meaning and effe ct as
I have done at [73] above. Although New Pentax does not
appear to have been cited in Fishman, the latter is a decision
of a superior court.”
33. A similar view has been taken in a number of other judgments48
in the United Kingdom.
United States of America
34. The Second Circuit of the Court of Appeals in the United
States of America in Fishman v. Delta Air Lines Inc 49, a burn injury
was inflicted on an infant by an air hostess. The infant, throu gh her
mother, brought an action against the airline after a period of 2 years,
claiming that the local limitation law suspends limitation for infants. The
Court of Appeals also traced the history of the provision in the Warsaw
Convention to find that:
“Almost every court that has reviewed the drafting minutes of
the Convention, including the district court in this c ase, has
rejected the contention that Article 29(2) incorpor ates the
tolling provisions otherwise applicable in the forum. See, e. g.,
Castro v. Hinson, 959 F. Supp. 160, 163 (E.D.N.Y. 1 997);
Fishman, 938 F. Supp. at 230; Royal Ins. Co., 834 F. Supp. at
48 See, Sidhu v. British Airways (1997) 2 WLR 26; Philips v. Air New Zealand (2002)
EWHC 800 (Commercial Court).
49 Supra no. 11.
573
636; Kahn, 443 N.Y.S.2d at 87. The minutes reveal t hat the
drafters of the Convention specifically considered and rej ected
a proposed provision that would have allowed the limitations
period to be tolled according to the law of the for um court.
See R.C. Horner and D. Legrez, Minutes of the Secon d
International Conference on Private Aeronautical La w, 110-
13 (1975); Kahn, 443 N.Y.S.02d at 86-87; Royal Ins. Co.,
834 F. Supp. at 636. As the district court recognized, the ma in
concern of the drafters in rejecting the tolling pr oposal was
“to remove those actions governed by the Convention from
the uncertainty which would attach were they to be subjected
to the various tolling provisions of the laws of th e member
states.” Kahn, 443 N.Y.S.2d at 87. Moreover, the debates over
the language ultimately adopted in Article 29 indic ate that
the only matter to be referred to the forum court by subsect ion
2 of Article 29 was “the determination of whether the plaintiff
had taken the necessary measures within the two-year period
to invoke that particular court’s jurisdiction over the action.”
35. Similarly, the Court of Appeals for the Ninth Circuit of the
United States of America in Narayanan v. British Airways 50 affirmed
the position under the Warsaw Convention and found that the Montreal
Convention also envisages the same position. It was held,
“The drafting history of the Warsaw Convention also reveals
that the drafters intended Article 29 to operate as a statute of
repose, which, “like a jurisdictional prerequisite, exting uishes
a cause of action after a fixed period of time … regardle ss of
when the cause of action accrued.” Albillo-De Leon v.
Gonzales 410 F.3d 1090, 1097 n.5 (9 th Cir. 2005). The drafters
considered – and rejected – a proposal that would h ave
allowed the limitations period to be tolled in accordance with
the law of the forum court. See R.C. Horner and D. Le grez,
Minutes of the Second International Conference on P rivate
Aeronautical Law, 110-13 (1975); see also Fishman, 132 F.3d
at 144 (observing that “[a]lmost every court that has review ed
the drafting minutes of the [Warsaw] Convention … h as
rejected the contention that Article 29(2) incorpor ates the
tolling provisions otherwise applicable in [a] forum [state ]”.
50 2014 U.S. App. LEXIS 5173: 747 F.3d 1125
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
Instead, the Warsaw Convention’s drafters adopted a “very
simple” proposal advanced by the Italian delegation: “if two
years after the accident no action has been brought, all acti ons
are extinguished.”
…
Consistent with this history, the prevailing view among courts
across jurisdictions is that the Montreal Convention’s limitation
period operates as a condition precedent to suit and, as such,
is not subject to equitable tolling. ”
36. The Supreme Court of New York also came to a simil ar
conclusion in Kahn v. Trans World Airlines Inc.51 In this case, the Court
had occasion to examine the history of the provision once again. It looked
into the travaux preparatoires and found that the provision was debated
and based on the debates, it held that:
“Based upon the foregoing, it is abundantly clear th at the
delegates to the Warsaw Convention expressly desire d to
remove those actions governed by the Convention fro m the
uncertainty which would attach were they to be subject ed to
the various tolling provisions of the laws of the membe r States,
and that the two-year time limitation specified in article 29
was intended to be absolute — barring any action which had
not been commenced within the two-year period. Moreover, it
is equally clear from the delegates’ discussion tha t the only
matter to be referred to the forum court by paragra ph 2 of
the present article 29 was the determination of whe ther the
plaintiff had taken the necessary measures within t he two-
year period to invoke that particular court’s jurisdiction over
the action. An obvious example of the need for such a
provision is the difference between the method of commencing
an action in the New York State courts as opposed to the
Federal courts. Thus, in New York, depending upon the forum
chosen, the plaintiff in an action governed by the Warsaw
Convention must either effect service upon the defe ndant
(CPLR 304) or file a complaint in the Federal District Court
(Fed Articles Civ Pro, Article 3 [in US Code, tit 28, Appendix])
within the time limited by article 29, i.e., two years. ”
51Supra no. 17.
575
Australia
37. The Federal Court of Australia, in Bhatia v. Malaysian Airline
System Berhad52 followed the judgments in Laroche and Kahn and held
that the local limitation law will not apply in view of Article 29(1) of the
Warsaw Convention. It was held in Para 34:
“34. The Convention has as its purpose the uniformity an d
certainty of the law, among its signatories, in rel ation to
(relevantly) personal injury suffered by passengers in the
course of international air carriage to which it appl ies. The
rights created by the Convention (given the force o f law in
Australia) are rights enjoyed by persons referred t o as
“passengers”. The corresponding liabilities are imposed u pon
persons referred to as “carriers”. The word “action” i n Art
35 must be given a construction that advances the o bject of
providing certainty in the legal relationship betwe en these
two persons. The “right to damages” subject to extinguishment
under Art 35, may naturally be understood as referr ing to
the right possessed by one person that is enforceable against
another person having a corresponding liability. It follows
that the steps necessary to bring an “action” must include
steps sufficient to invoke the jurisdiction of a co urt to
determine the controversy concerning the respective rights
and liabilities of the first person in relation to the second.
Thus, the words “brought” and “action” must be understood
as referring to a process by which the disputed rig hts and
liabilities of the two persons come before a court for
adjudication. ”
38. We have come across one decision of France’s Cou r de
Cassation in Lorans v. Air France 53 which has taken a different view
of the matter. However, the decisions that we have referred have
considered the issue from all perspectives including the decision of the
French Court, and did not accept the reasoning adopted there in. It is
also important to mention that there are some decisions of the US Courts
in the case of Joseph v. Syrian Arab Airlines 54 and Flanagan v.
McDonnell Douglas Corp 55 which have also not deliberated the issue
52 Supra no. 18.
53 (1977) 31 RFDA 268: (Cour de Cassation [Assemblee Pleniere] Jan,14, 1997).
54 88 F.R.D. 530 (S.D.N.Y. 1980).
55 428 F.Supp. 770 (C.D. Calf. 1977).
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
in detail on arriving at the interpretation as is done in the cases that we
have referred to hereinabove. Excluding these minor varia tions, an
overwhelming majority of the decisions have taken an informed view
that Article 29 excludes and is intended to exclude the applica tion of
municipal legislations, excluding the periods of limitation.
39. So far as India is concerned there is no direct decision of this
Court on the Air Act, 1972. The closest we get is the decision of this
Court under the Indian Carriage of Goods by Sea Act, 1925, which fell
for interpretation inEast and West Steamship Co. v. S.K. Ramalingam
Chettiar56, where this Court had observed that “Rules of limitation are
likely to vary from country to country. Provisions for extension of
periods prescribed for limitation would similarly v ary. We should
be slow therefore to put on the word “discharged from liability” an
interpretation which would produce results varying in different
countries and thus keeping the position uncertain f or both the
shipper and the shipowner…It is hardly necessary to add that once
the liability is extinguished under this clause the re is no scope of
acknowledgment of liability thereafter . Apart from this, we have
certain decisions of the High Courts that have interpreted Rule 30 of the
Second Schedule of the Act.
Decisions of our High Courts on Rule 30, Second Schedule:
40. The High Courts across the country have also taken a similar
view that the Limitation Act, 1963 will be excluded from operation for a
claim under the Air Act. The High Courts have reasoned that the Air
Act is a special statute and would thus prevail over the Limitation Act,
1963, which is a general statute. The High Court of Delhi in Air India
Ltd. v. Tej Shoe Exports P. Ltd. 57, Sailesh Textile Industries v. British
Airways& Anr. 58, Indian Airlines v. Angelique International Ltd.&
Anr.59, Ethopian Airlines v. Federal Chemical Works Ltd. 60, the High
Court of Madras in M/s M.R.F Ltd. v. Singapore Airlines 61 and Air
India, Bombay Airport v. Asia Tanning Co. ,62 and the High Court of
Bombay, in the judgment impugned before us, have all taken this view.
56 Supra no. 7.
57 Supra no. 8.
58 2003 SCC Online Del 318 (at paras 10 to 15).
59 2014 SCC Online Del 6825 (at para 16).
60 2004 SCC Online Del 862 (at para 15).
61 Supra no. 4.
62 2002 SCC Online Mad 802 (at para 7).
577
41. There is only one decision that has taken a different view of
the matter, and that is the decision of the High Court of Gujarat in National
Aviation Company of India Ltd. v. Jatnadevi Tejraj Jain ,63. The High
Court reasoned that Article 30(2) of Schedule II makes the law of the
Court seized of the matter applicable and the law of the Court seized of
the matter in India is the Limitation Act, 1963. It was held:
“10. The aforesaid Rule provides that right to damages shall
be extinguished if the action is not brought within two y ears
from the date on which the aircraft ought to have arrived at
or stopped. However, sub-rule (2) expressly provides that t he
calculation of the period of limitation shall be as per the
method determined by the law of the Court seized wi th the
case. Therefore, it is apparent that after applying the method
as provided by the law of the Court, the period of 2 years is
to be counted, and thereafter, the right to damages sha ll get
extinguished if the action is not brought within the said period
of 2 years. The law of the Court seized with the ca se is the
Limitation Act, 1963. Part III of the Limitation Act provides
for computation of the period of limitation, which can be said
as at par with the method of calculation of the per iod of
limitation. Section 14 of the Act provides for exclusion o f the
time of proceeding bona fide in Court without juris diction.
Therefore, while computing the period of limitation of two
years, in our view, section 14 of the Limitation Ac t would
apply.”
42. We have already considered the true and correct meaning of
Rule 30 (2), or as the case may be Rule 35 (2) of the Third Schedule by
referring to the Conventions, coupled with travaux preparatoires. The
Gujarat High Court has not considered the matter in the right perspective
while interpreting Rule 35 (2).
43. In the ultimate analysis, keeping in view the legislative history
of the Convention and in view of the consistent interpretation of Article
29 of the Convention adopted in different jurisdictions, for the purpose
of uniformity and also to subserve the purpose and object of the
Convention, we are of the view that Rule 30 (2) does not enable
applicability of exclusion of periods for the purpose of reckoning the
period of two years.
63 2011 SCC Online Guj 7601 (at para 10).
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
Issue No. 2
Whether the Air Act, 1972, particularly Rule 30 of the Seco nd
Schedule expressly excludes the applicability of the Li mitation Act,
1963?
44.1 On this issue Shri Navare made a two-prong submission.
Rule 30 of Second Schedule in terms reiterates the applicability of Section
29 of the Limitation Act and at the same time the Air Act, 1972 being a
special law, the provisions of Limitation Act apply as there is no express
exclusion.
44.2 Shri Navare submits that firstly, there is no provision
whatsoever in the Air Act expressly excluding the applicab ility of the
Limitation Act. For this reason, the provisions of the Limitation Act must
apply as a matter of public policy. Secondly, Rule 30 (2) of the Air Act in
terms reiterates the applicability of the Limitation Act. I n the written
submissions he has highlighted the fact that Section 29 of the Limitation
Act is very different from Section 39 of the Limitation Act, 1980 of the
United Kingdom.
44.3 On the other hand Ms. Ritu Singh Mann has submitted that
the Air Act, 1972 excludes the applicability of the Limitation Act.
45. While dealing with Issue No.1, we have held that the right to
damages itself is extinguished after the expiry of the period of two years
and therefore the provisions of the Limitation Act have no application as
there is no right subsisting for enforcement. In this contex t we have
referred to Section 3 of the Limitation Act which merely bars the remedy
and not the right itself, but when the statute extinguishes the right itself
the position is very different. We will however consider the pr esent
argument of ShriNavare as an alternative plea and proceed forthwith to
deal with the same.
46. Where a period of Limitation is prescribed in a special law, by
virtue of Section 29 of the Limitation Act, such period will apply as if it
was provided in the Schedule of the Limitation Act. Consequently, the
provisions of Sections 4 to 24 will apply for the purpose of computation
of period of limitation. This provision is subject to a bright exception that
the Limitation Act will not apply if it is “expressly excluded” by the
Special Act. Section 29 of the Limitation Act to th e extent that is
necessary is as under: -
579
“29. Savings
(1)…..….
(2) Where any special or local law prescribes for any suit,
appeal or application a period of limitation differ ent from
the period prescribed by the Schedule, the provisions of se ction
3 shall apply as if such period were the period prescribed b y
the Schedule and for the purpose of determining any period
of limitation prescribed for any suit, appeal or ap plication
by any special or local law, the provisions contain ed in
sections 4 to 24 (inclusive) shall apply only in so far as, and
to the extent to which, they are not expressly excl uded by
such special or local law.”
47. The statutory requirement of express exclusion is considered
by this Court in a number of decisions.64 Express empowerment is not to
be understood in a pedantic manner. Express empowerment is to be
gathered from the provisions of the statute. In Shanmugam v.
Commissioner for Registration 65, the Privy Council held that:
“It is argued that the Act does not contain the “exp ress
provision” required by the Interpretation Ordinance to make
it applicable. Their Lordships do not agree. Upon the meaning
of the words “express provision” counsel relied upo n in re
Meredith and stated that it must be provision the applicability
of which did not arise by inference. He argued that there was
no “express provision” as no reference had been mad e to
pending proceedings. Their Lordships are of the view th at it
is correct to state that express provision is provi sion the
applicability of which does not arise by inference. The
applicability, however, of the provision under disc ussion to
the present case does not arise by inference; it arises dir ectly
from the language used. The Fact that the language used is
wide and comprehensive and covers many points other than
the one immediately under discussiondoes not make it possibl e
to say that its application can arise by inference only . To be
“express provision” with regard to something it is not
64 Needle Industries (India) Ltd. and Anr. v. Needle Industries Newey (India) Holding
Ltd. and Ors(1981) 3 SCC 333.
65 [1962] 2All E.R. 609.
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
necessary that that thing should be specially mentioned; it is
sufficient that it is directly covered by the language however
broad the language may be which covers it so long a s the
applicability arises directly from the language use d and not
by inference therefrom . The argument fails.”
48. In Hukumdev Narain Yadav v. Lalit Narain Mishra 66, the
Court held as under: -
“17. ……….Even assuming that where a period of limita tion
has not been fixed for election petitions in the Sc hedule to
the Limitation Act which is different from that fix ed under
Section 81 of the Act, Section 29(2) would be attracte d, and
what we have to determine is whether the provisions of this
Section are expressly excluded in the case of an el ection
petition. It is contended before us that the words “expressly
excluded” would mean that there must be an express referenc e
made in the special or local law to the specific provisions of
the Limitation Act of which the operation is to be e xcluded.
As usual the meaning given in the Dictionary has been relied
upon, but what we have to see is whether the scheme o f the
special law, that is in this case the Act, and the nature o f the
remedy provided therein are such that the Legislature intended
it to be a complete code by itself which alone should govern
the several matters provided by it. If on an examination of the
relevant provisions it is clear that the provisions of the
Limitation Act are necessarily excluded, then the b enefits
conferred therein cannot be called in aid to supple ment the
provisions of the Act. In our view, even in a case where the
special law does not exclude the provisions of Secti ons 4 to
24 of the Limitation Act by an express reference, i t would
nonetheless be open to the Court to examine whether and to
what extent the nature of those provisions or the nature of the
subject-matter and scheme of the special law exclud e their
operation.”
49. Following the principle laid down in Hukumdev67, we will now
examine the relevant provisions of the Air Act, 1972, its Schedules, and
66 (1974) 2 SCC 133.
67 Supra no. 66.
581
Rule 30, in particular, to see if these provisions have the effect of expressly
excluding the applicability of the Limitation Act.
Carriage by Air Act, 1972
50. The Air Act, 1972 is an Act to give effect to various
International Conventions for the unification of ce rtain Articles
relating to international carriage by air . The Preamble of the Act
states:
“An Act to give effect to the Convention for the unificati on of
certain rules relating to international carriage by air signed
at Warsaw on the 12th day of October, 1929 and to the said
Convention as amended by the Hague Protocol on the 28th
day of September, 1955 1 [and also to the Montreal
Convention signed on the 28th day of May, 1999 and to make
provision for] applying the rules contained in the said
Convention in its original form and in the amended form
(subject to exceptions, adaptations and modifications) to non-
international carriage by air and for matters conne cted
therewith.”
51. The International Conventions incorporated in the Act are the
(i) Warsaw Convention, 1929; (ii) The Warsaw Convention, 1929 a s
amended by the Hague Protocol on 28.09.1955 and (iii) the Montréal
Convention, 1999. Section 3 of the Act incorporates the Warsaw
Convention into the Act as the First Schedule and specifically provides it
the status of law in India. Section 4 incorporates the Hague Protocol
and provisions it in The Second Schedule. Section 4A for giving effect to
Montréal convention, provides The Third Schedule to t he Act and
specifically provides the status of law to these provisions.
52. The Warsaw Convention as amended by the Hague Protocol
is a complete code within itself for all questions relating to carriage by
air by international carriages. Rule 1(1) provides that the Hague Protocol
shall apply to “ all international carriage of persons, baggage or
cargo performed by aircraft for reward ”. Rule 2 provides that the
Convention will apply to carriage performed by the State or by legally
constituted public bodies. Chapter II of the Convention (Rules 3 to 16) is
entitled “Documents of Carriage ”. Rule 3 relates to the documents
that a carriage of passengers must deliver. Rule 4 prescribes a mechanism
for baggage check. Rule 5 to 11 relates to the air waybill in cases of
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
cargo carriages. Rule 12 relates to the right of the consignor to dispose
of the goods in a manner that is not prejudicial to the carrie r. Rule 13
pertains to the rights of the consignee upon the arrival of the goods. Rule
13(3) provides that where there is a loss of goods, the consignee shall be
entitled to enforce the rights which ‘flow from the contract of carriage’.
Rule 14 provides for the consequences of non-compliance of Rule 12
and 13.
53. The Chapter with which we are presently concerned with is
Chapter III which is titled ‘Liability of the Carrier’. Rule 17 provides
for the liability of a carrier for damages in the event of death or wounding
or other injuries caused to a passenger while onboard the aircraft. Rule
18 envisages the liability of a carrier in the event of de struction, loss,
damage etc. of cargo. Similarly, Rule 19 concerns the liability of a carrier
upon delay in the carriage of passengers, baggage or cargo. Rule 20
provides for an equitable exemption to the carrier if he prove s that he
had taken all necessary measures to negate the delay or damag e. Rule
21 is yet another equitable provision that protects the carrier in cases of
contributory negligence. Rule 22 specifies the minimum liability of the
carrier. Rule 23 nullifies all limits which are lower than those provided in
Rule 22.
54. Rule 24 stipulates that any action for damages “ can only be
brought subject to the conditions and limits set ou t in these
rules”.Rule 25 relates to the vicarious liability of the carrier . Rule 26
provides that a servant/agent of a carrier shall be exempted from liability
if he proves that he acted within the scope of his employment. Rule
27(1) specifies that receipt of baggage or cargo is prima facie proof of
its good condition. Rule 27(2) provides that where the goods are damaged,
a complaint must be made within 7 days of the date of receipt of baggage
and 14 days from the date of receipt of cargo. Rule 27(3) provides that
a complaint shall be made in writing. Rule 27(4) further provides that if
no complaint is made within the period specified, no action shall lie against
the carrier except in cases of fraud. Rule 28 stipulates that t he legal
representatives of a deceased person can bring an action for damages.
Rule 29 is the jurisdictional clause, and provides that the action may be
brought in the territory of one of the State Parties, either b efore the
court of the domicile of the carrier or of its principal place of business or
where it has a place of business through which the contract ha s been
made, or before the court at the place of destination. Rule 29(2) stipulates
583
that the ‘questions of procedure shall be governed by the law of the
court seized of the case.’
55. Rule 30, which is the fulcrum of the case, may be extracted in
full:
“30. (1) The right to damages shall be extinguished if an action
is not brought within two years, reckoned from the date of
arrival at the destination, or from the date on whi ch the
aircraft ought to have arrived, or from the date on which the
carriage stopped.
(2) The method of calculating the period of limitat ion shall
be determined by the law of the Court seized of the case. ”
56. Chapters IV, and V are not of much relevance to the case a t
hand. Suffice it to say that they are machinery provisions t hat do not
affect the interpretation of Rule 30.
57. The Convention certainly incorporated two variables in the
context of reckoning the period specified in Rule 30 (1) of lim itation.
The first event relates to the time, which is a fixed period of two years.
The second event relates to the commencement of cause of action which
has been specified as any of the three events being (i) arri val at the
destination; or (ii) date on which the aircraft ought to have ar rived; or
(iii) the date on which the carriage stopped. Now, the only e vent that
remains is the date on which the action for damages is initiated as this
would depend upon the law of the Court seized of the case.Rule30(2)
specifically provides that “ the method of calculating the period will
be determined by the law of the Court seized of the case .” This
should necessarily follow for the reason that the period of two years for
enforcing the right would be extinguished if an action is not brought
within the said period.
58. We may also note that giving effect to the meaning of the
words the ‘ law of the court seized of the case ’ would lead to an
anomalous situation where the law of every country would be
incorporated into the Convention, thereby defeating the purpose of an
International Convention which is to bring about uniformity across the
globe in the laws applicable to carriage by air.
59. Sub-Rule (2) must therefore be interpreted harmoni ously
keeping in mind not only the content of Sub-Rule (1) but also the purpose
M/S BHAGWANDAS B. RAMCHANDANI v. BRITISH
AIRWAYS [PAMIDIGHANTAM SRI NARASIMHA, J.]
and object of the Convention which is to bring about the unification of
Rules relating to International Carriage by Air. The intention behind Article
35(2) was merely to fix the date on which the suit (or action) has ‘begun’
and the date on which limitation expires, as per the laws of the country.
The example given by the French Delegation makes this position clear
as it was to accommodate provisions such as pre-trial confe rences. As
stated above, in India, such a position could possibly arise if the legislature
envisages mandatory pre-trial mediation. It is in order to accommodate
for this eventuality that the law-makers left some room for the domestic
law to operate.
60. Having considered the matter in detail, we are of the opinion
that Rule 30 of the Carriage by Air Act 1972, expressly exclud es the
applicability of the Limitation Act,1963. Issue No. 2 is answered
accordingly.
61. For the reasons stated above, the Appeal arising out of SLP
No. 16767 of 2018, from the judgment of the High Court of Judicature at
Bombay in WP No. 6647 of 2014 is accordingly dismissed. The parties
shall bear their own cost.
62. We place on record the valuable assistance given by Shr i
Vinay Navare, assisted by Shri Pravartak Pathak, Advocate, Ms. Gwen
Karthika, Advocate and Ms. Abha R. Sharma, AOR for the Appellants
and Ms. Ritu Singh Mann for Respondent assisted by Shri Dheeraj K .
Garg, Advocate and Shri Rajan K. Chourasia, AOR.
Ankit Gyan Appeal dismissed.
(Assisted by : Rahul Rathi, LCRA)