In Brief
A freight forwarding company negligently recorded an incorrect port of loading in a Forwarder Cargo Receipt (FCR), mentioning JNPT Bombay instead of FOB New Delhi, despite clear shipping instructions from the exporting company. This error caused the importer's bank to refuse payment under the Letter of Credit. The exporter lost both the goods and sale consideration. The State Commission awarded Rs. 13,79,901 as loss plus compensation for harassment. The National Commission reversed this, awarding only Rs. 10,000. The Supreme Court held that the freight forwarder's admitted error constitutes deficiency in service; the exporter is a consumer under the Consumer Protection Act; and the exporter cannot be faulted for not detecting the error. The Court restored the State Commission's award, holding the freight forwarder fully liable for the loss caused by its negligence.
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