Delhi State Commission Holds Airbnb India liable For Cancellation Of Confirmed Booking

Brief facts:

The complainant booked accommodation for his stay at apartment Cadogan Square-II, Greater London, England through Airbnb's (Appellant) platform and paid Rs. 13,75,713/- in advance on 13.04.2022. The booking was duly confirmed by Airbnb India. However, the Complainant's booking was cancelled by Airbnb just four days before his stay.

Being aggrieved, the Complainant filed a complaint before the District Consumer Disputes Redressal Commission-II (South Delhi) alleging deficiency in service. In response, Airbnb contended on lack of jurisdiction, lack of privity of contract, and non-joinder of Airbnb Ireland.

Through an order dated 06.07.2023, the District Commission held in favour of the complainant. Dissatisfied by the order, Airbnb filed an appeal in the Delhi State Consumer Disputes Redressal Commission (“State Commission”).

Contentions of Airbnb India:

The Appellant contended that there was no direct contractual relationship between the parties. They also argued that the complainant does not come under the definition of 'consumer' as no consideration was paid. Further, Airbnb raised the question of non-joinder as the District Commission failed to recognise Airbnb Ireland.

Airbnb denied all the allegations and asserted on the doctrine of separate corporate personality as well-established principle of law that cannot be dismissed due to technical issue.

Observation of the State Commission:

The Commission held that the complainant is a consumer under the Consumer Protection Act, 2019 as he has duly paid consideration for the services provided by Airbnb. Further, it was also observed that both parties had direct interaction and transaction through the Airbnb India's platform so, privity of contract existed between both the parties. Thus, there was breach of services on part of Airbnb.

The commission ruled that Airbnb India acts as an Indian entity and provides booking and transaction facility through its online platform. Thus, the services provided by them comes under Section 2 (42) of the Consumer protection Act 2019 so non-joinder of Airbnb Ireland will not affect the matter.

The commission concluded that Airbnb India facilitates global transaction for Indian customers. Thus, it is responsible for deficiency in services as it cancelled the booking after confirmation.

Therefore, the State Commission upheld the decision of the District Commission and the appeal was dismissed.

Case Title: Airbnb India Private Ltd. vs Mr. Varun Mirchandani

Case No: First Appeal No.- 486/2023

Date of Pronouncement: 21.11.2024

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