Chandigarh District Commission Holds 145 Café & Bar Bandra Liable For Deducting Service Charge On Bill

Brief Facts:

The Complainant visited a restaurant operated by 145 Café & Bar Bandra and consumed several drinks. Upon receiving her bill, she noticed that the restaurant imposed a 10% service charge amounting to Rs. 101.70/- for serving the drinks. The Complainant argued that this constitutes an unfair trade practice and referred to an order issued by the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) dated April 21, 2017, and a press release by the Consumer Protection Authority, India dated July 4, 2022. Both these directives indicated that the mandatory imposition of service charges by restaurants and hotels is considered an unfair trade practice.

Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission-II, U.T. Chandigarh (“District Commission”) and filed a consumer complaint against the restaurant. The restaurant didn't appear before the District Commission for proceedings.

Observations by the District Commission:

The District Commission referred to the bill provided to the Complainant and noted that the restaurant charged a sum of Rs. 101.70/- for services rendered. The District Commission held that this charge was imposed despite clear directives preventing such service charges issued by the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) through its order dated April 21, 2017, and by the Central Consumer Protection Authority.

Therefore, the District Commission held that the restaurant liable for deficiency in services and unfair trade practices. Consequently, it directed the restaurant to refund the amount of Rs. 101.70/- to the Complainant. Additionally, it was directed to pay a lump sum compensation of Rs. 5,000/- to the Complainant.

Case Title: Mannat Dutt vs 145 Café & Bar Bandra

Case Number: Consumer Complaint No. 45/2024

Date of Decision: May 15^th, 2024