Indian Airlines — Missing Baggage retrieval - compensation

I had boarded the Indian Airlines flight on 31 Dec.,2009 at Kochi airport to Chennai via Bangalore and then onward from Chennai to Vizag.
The flights were :

From Kochi IC509 and from Chennai IC541.

My luggage was weighed and tagged at Kochi airport, but the receipt of the same was either not entered nor given to me along with the boarding pass.

They asked me to go to the security checkin and I climbed the flight which was late by an hour. I am a first time traveller and I assumed that the things were in order.

I showed my ticket at Chennai airport ground crew. I also told them about my baggage. They were in a hurry to take off and although they saw my ticket and noted the discrepancy, they did not bother to give any specific answers to the whereabouts of my luggage. When I asked them if I should collect it at Chennai airport, they said not necessary, it will reach your destination airport at Vizag. I took their word and when I reached my destination, I had to wait for more than an hour to explain my unfortunate and fumbled up situation to the manager in charge of Air India Flights at Vizag airport. He said that as he was handling all the work by himself, I will have to either wait or give the necessary details, so that he can get back to me. After the hour long wait, I gave him the details and came back home. I kept in touch with the Kochi airport staff of the Air India flights. They kept saying to me that they will come back to me later with the details. Later on I contacted the Vizag personnel. He just said sorry, no information. I will contact them tomorrow if possible. The same day, after much persuasion, Kochi airport manager confirmed that the baggage was tagged only upto Chennai and he will see to it that the baggage will be sent by the next day flight.

Next day, afternoon after calling from the staff at Vizag airport regarding the whereabouts of my baggage, I went to collect it. The baggage was given to me but they removed the tags. When I asked them to leave the tags, as I have to officially claim a compensation, they refused the same. I told them if they were willing to drop my baggage at my home I wouldn't be asking for any compensation. They refused any compensation, saying that as it was not tagged while boarding the Chennai flight, I cannot claim any compensation. I told them the Kochi Chennai flight was delayed and that the flight from Chennai to Vizag was ready to take off. I told the ground crew there, but they just herded us through the security check and on to the flight.

At Kochi airport itself the ground staff were very unprofessional in discharging their duties by not attaching the tagged receipt upto Vizag on my boarding pass. Later on at Chennai, the ground staff were very unprofessional in handling my doubts. On arrival at Vizag airport, there was only one person on duty who was handling multiple jobs who could answer my queries and he had no time. He made me wait for an hour or so. The phone calls that I made to the different personnels were many. I had no time to take rest as nobody was coming out with any specific answers and to top it all, I had to go 15 kms to the airport on the second day without attending to my official duties.

I request you to kindly look into my grievance.