by Puja Jain (B-498 NFC) 9810627927: NFC RWA (Ashoka Park)
In a Petition being filed by the ‘National Restaurants Association of India” and the “Federation of Hotels and Restaurants Association” before the Hon’ble High Court of Delhi challenging the Central Consumer Protection Authority (CCPA) guidelineswhich prohibited hotels and restaurants from levying service charge automatically on bills, the Delhi High Court passed an interim order staying the said ‘guidelines’ issued by the Ministry of Consumer Affairs. While passing the interim order, the High Court recorded that the information that a certain restaurant levies service charge must be displayed prominently for the knowledge of the customer(s) because in the Court’s view the issue of payment of service charge’ is “is a matter of choice”. The Court further observed that the information on display would enable the customers to make the choice to go/not to go/dine/lunch etc. to an establishment/restaurant if they do not wish to pay ‘service charge’.
However, while dealing with the said issue and passing the interim order, the Hon’ble Court clarified that the issue requiredgreater consideration and gave the concerned authorities an opportunity to reply to the arguments and contentions raised by the Federation/Associations so that a final decision can be made when the case is heard next in November, until which time the interim order will remain in place.
In this scenario, the Central Consumer Protection Authority approached the ‘Division Bench of the Delhi High Court’assailing the interim order, whereby the Authority was asked to approach the Ld. Single-judge with an application for vacation of stay on its guidelines restraining hotels and restaurants from levying service charge.
[NOTE: The above article is only for the purpose of information to all our readers, and does not, in any way, lends support to the challenge or otherwise, in the case pending before the Hon’ble High Court]
