ECONOMIC TRANSPORT ORGANISATION DELHI vs M/S CHARAN SPINNING MILLS (P) LTD.

The Supreme Court referred the case to a Constitution Bench to reconsider the decision in Oberai Forwarding Agency v. New India Assurance Co. Ltd. regarding the rights of an insurer as a subrogee under the Consumer Protection Act, 1986. The Court held that the insurer, having settled the claim with the assured and obtained a letter of subrogation, has the right to file a complaint for deficiency in service against the carrier under Sections 8 and 9 of the Carriers Act, 1865. The appeal was dismissed, affirming the lower courts' decisions that the carrier was liable for the damage to the consignment due to negligence.