Intermediary Can Be Held Liable For Refunding Customers: NCDRC Holds Goibibo Liable For Deficiency In Service

Brief Facts of the Case

The complainants booked flight tickets through Goibibo for travel from New Delhi to Edmonton and back, paying Rs. 1,29,860 and Rs. 53,280. When Jet Airways ceased operations, the complainants sought a refund from Goibibo but received no response despite multiple attempts, including sending a legal notice. Dissatisfied, they filed a complaint with the District Commission, which allowed the complaint. Consequently, Goibibo appealed to the State Commission of Punjab, but the appeal was dismissed, leading them to file a revision petition before this Commission.

Contentions of Goibibo

Goibibo argued that the State Commission failed to recognize that it is merely a facilitator between the consumer and the service provider, with no control over the actions or omissions of the service provider, such as Jet Airways. It was emphasized that the company's role was limited to confirming the booking and issuing a confirmation voucher and that any refund or compensation for cancellations is the airline's responsibility, not Goibibo. They cited previous rulings, stating that the company cannot be held liable for third-party issues as an intermediary under the IT Act. Additionally, they pointed out that all transactions are governed by the User Agreement, which clearly states that Goibibo has no liability for the non-operation of flights by the airline.

Observations by the National Commission

The National Commission observed that the primary issue was whether Goibibo, as an intermediary, could be held liable for refunding customers when an airline fails to provide service. The Commission, referencing Goibibo's refund guidelines and a Jet Airways circular, rejected Goibibo's claim that it had no liability. It noted that Goibibo is not simply a facilitator but also earns a commission, implying a responsibility to manage refunds for cancelled bookings. The National Commission upheld the State Commission's decision, stating that there was no jurisdictional error or irregularity in the lower courts' findings, which were based on evidence and aligned with legal principles established by the Supreme Court. Hence, the revision petition was dismissed.

Case Title: Goibibo Com Vs. Amrit Pal Jaiswal

Case Number: R.P. No. 2544/2023

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