Consumer Issues
Kuwait Airways asked to pay Rs25 lakh for late delivery of goods

Holding Kuwait Airways guilty of negligence, inaction and passivity for not delivering the goods, the NCDRC asked it to pay Rs25 lakh for delaying the delivery of consignments of handicrafts to the US over 16 years ago

New Delhi: Kuwait Airways has been ordered by the apex consumer commission to pay Rs25 lakh as compensation to Rajasthan Art Emporium for delaying the delivery of its consignments of handicrafts to the USA 16 years ago, reports PTI.


The National Consumer Disputes Redressal Commission (NCDRC) gave the order holding the airline guilty of "negligence, inaction and passivity" for not delivering the goods sent by the emporium to its US-based buyer, Williams Sonoma Inc, on time.


The NCDRC also observed that the emporium had paid air freight charges of Rs24.48 lakh, which was ten times more than the sea freight, so that the consignment could reach its buyer quickly.


"All the facts and circumstances clearly establish negligence, inaction and passivity on the part of opposite party 1 (Kuwait Airways). When the goods are not delivered within 7 days, the fault certainly lies at the door of the opposite party 1.


"The complainant paid air freight of Rs24.48 lakh, equivalent to $70,000, whereas the sea freight for the said cargo cannot be more than the $7,200. The complainant paid 10 times more so that there should be timely delivery of the goods in question. The sea cargo would have taken 25 to 30 days but the air cargo took more than 30 days," said the bench presided by Justice JM Malik.


The commission's order came on emporium's petition, which said the airline and its agent had failed to deliver its three consignments, weighing a total of 26,859.5 kgs, in seven days by 31 July 1996 as initially assured by them.


They had also failed to deliver the goods as per their revised delivery schedule, the emporium had alleged adding the goods reached its destination over a month late on 30 August 1996 instead.


Kuwait Airways had denied the allegations with its counsel arguing that there was no delay on its part as time was not the essence of the contract.


It had also said the goods had reached the destination on 23 August 1996, but had taken time in custom clearance and the airline cannot be held responsible for delay.


The commission, however, rejected the contention saying "in view of the rules and the fact that opposite party 2 (Daga Air Agents) admitted that the goods were to be sent on urgent basis, the question whether the time was the essence of the contract pales into insignificance."


India Inc hails government's decision on insurance, pension funds

Corporates feel that the forward looking measures would infuse the much-needed capital in the insurance and pension sectors


New Delhi: India Inc has termed government's second wave of reforms, including decisions to open the pension sector to foreign investment and raising the foreign direct investment (FDI) cap in insurance to 49%, as 'path-breaking and landmark', reports PTI.


"The new instalment of big bang reforms is a clear message that the government is determined to strengthen the economy," FICCI President RV Kanoria said.


He said that these forward looking measures would infuse the much-needed capital in the insurance and pension sectors.


Kanoria also urged the government to make investment guidelines more flexible so that such funds can be used to support infrastructure development.


"Today, insurance and pension funds are constrained to participate in infrastructure projects as these are required to invest a substantial portion of their funds in government securities and also not allowed to invest in projects rated below a certain level. These limitations need to somewhat relaxed," he added.


Sharing similar views, CII said the industry was anxiously waiting for the clearance of the Companies Bill for its introduction in Parliament.


"The new company law is expected to be more streamlined and facilitative than the existing 55-year-old Companies Act, it seeks to replace," CII Director General Chandrajit Banerjee said.


Banerjee said on enactment, the Companies Bill will be a boon for business, corporates, investors and stakeholders at large.


"The new law would strengthen the concept of shareholders democracy and offer protection of the rights of minority stakeholders," he said.


Poor showing by the manufacturing sector pulled down the GDP growth to 5.5% in the first quarter, the decade's worst Q1 performance.


Rating agency CARE gets SEBI go-ahead for IPO

The shareholders like IDBI Bank, Canara Bank, SBI, IL&FS, Federal Bank, IL&FS Trust would reduce their stake in the IPO of CARE

Mumbai: Domestic rating agency Credit Analysis & Research Ltd (CARE) has got a go-ahead from the market regulator Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), reports PTI.
CARE had filed its draft red herring prospectus (DRHP) with SEBI about a year ago for the proposed public offer, which would comprise sale of about 72 lakh shares by its shareholders.
While the exact size of the offer is yet to be determined, the shares to be sold would constitute 25.22% of the company's post-offer equity capital.
SEBI issued its final observations on the draft offer documents on 24th September, as per the latest update by the market regulator. SEBI's observations are necessary for the companies to launch any public offer.
The main promoters of CARE are two domestic banks, IDBI Bank and Canara Bank, and the company competes with other rating agencies like Crisil and ICRA, which are already listed on the stock exchanges.
The proposed offer is being made by the selling shareholders and there will be no fresh issue of shares by CARE. As a result of which all the proceeds would go to the selling shareholders and not to the company.
The shareholders selling their shares in the offer include IDBI Bank, Canara Bank, SBI, IL&FS, Federal Bank, IL&FS Trust (for shares held on behalf of Milestone Fund), Milestone Trusteeship (for shares held on behalf of Milestone Army Trust), ING Vysya and Tata Investment.
Along with CARE, SEBI has given its go-ahead to a total of 10 companies between August and September for their public offers.
These firms include Goodwill Hospital, which had withdrawn its IPO in January 2012 due to poor investor response and again filed the draft papers with SEBI in May this year to raise Rs 98 crore.
Other companies that have got SEBI's green signal are Aurangabad Electricals Ltd, Repco?Home Finance Ltd, Tara Jewels Ltd, Usher Eco Power Ltd, Harisons?Steel Ltd, Supreme Alloys Ltd, IFCI Factors Ltd and TV vision Ltd.
Beside, companies like Tunip Agro Ltd, NKG Infrastructure and Mukesh Udyog have withdrawn their IPO plans, while SEBI has returned the documents of Madhya Bharat Agro Products Ltd.
Most of the companies plan to utilise their proposed IPO proceeds for capacity expansion as well as working capital requirements.


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