Court case(1996) 4 SCC 704

The appellant, an exporter of knitted goods, handed a consignment of documents to the respondent courier for delivery abroad. It signed the consignment note, which contained a clause limiting the courier's liability for loss or delay to a stated amount unless a higher value was declared and paid for. The documents were not delivered in time, and the appellant claimed that it had suffered a heavy loss as a result. It complained to the National Commission under the Consumer Protection Act 1986 for compensation for the whole loss. The National Commission held that the appellant was bound by the limitation clause in the contract it had signed and limited the compensation accordingly. The appellant appealed to the Supreme Court.

The Supreme Court (K. Ramaswamy J.) dismissed the appeal. Having signed the consignment note containing the limitation clause, the appellant was bound by its terms; the parties are governed by the contract they made, and the consumer forum could not award compensation beyond the agreed limit. If the appellant wished to claim damages beyond that limit on the ground that the clause did not bind it, or for consequential losses, its remedy was in a civil suit where the questions could be fully tried.