Consumer Commission In Odisha Awards ₹ 3000 Compensation To Law Student Charged More Than MRP On Water Bottles By Restaurant

“It is important to note that Maximum Retail Price (MRP) is the higher price at which, product can be sold. According to the Legal Metrology (Packaged Commodities) Rules, 2011, no retail dealer or other person including manufacturer, importer and wholesale dealer shall make any sale of any commodity in packed form at a price exceeding the retail sale price thereof. This aforesaid rule covers all retail dealers and other persons and does not exclude hoteliers or restaurants," said the Commission

Factual Background

On 21.01.2022, Risha Mohanty, a law student at University Law College, Utkal University, Bhubaneswar went to Four Petals restaurant by Varenya's, along with her family, to have lunch. When they asked for normal water, they were served with bottled mineral water. The MRP was printed as Rs. 20 on the water bottle and they ordered two bottles. However, they were charged Rs. 40 per bottle at the final billing, which was double of the price printed on the bottles.

When the complainant objected to the same, the hotel staff did not give any positive response. Being aggrieved by the same, she filed the complaint against the restaurant claiming refund of the excess amount charged along with compensation of Rs. 20,000/- towards mental agony and litigation cost.

Contentions

The restaurant contended that before placing the order, the complainant was supplied with the menu card. The price of every single item including the water bottle was clearly mentioned in the menu, it said.

It was further contended that the restaurant provides numerous other services which the customer enjoys without paying for that. The restaurant said it cannot be held liable for charging price in excess of the MRP.

To justify its argument, it relied upon the case of Federation of Hotel and Restaurant Association of India v. Union of India & Ors., wherein it was observed that "charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provision of the SWM [Standards of Weights and Measures] Act as this does not constitute a sale or transfer of those commodities by the hotelier or restaurateur to its customers.”

Findings & Order

The Commission said the restaurants cannot charge more than the MRP as same will be a sheer violation of the settled provisions of law. After perusing the ruling in Federation of Hotel and Restaurant Association of India, the Commission observed:

“It is a settled position of law that a court of law cannot override a legal legislation. Also, there are judgments of Hon'ble NCDRC and SCDRC wherein, it is held that there cannot be two MRPs except in accordance with the law. A service provider cannot charge an amount more than the MRP.”

Accordingly, the restaurant was directed to pay Rs. 2,000 to the complainant towards mental harassment caused to her along with Rs. 1000 towards the cost of litigation. 

Case Title: Risha Mohanty v. Proprietor, Four Petal’s by Varenya’s

Case No.: C.C. Case No. 25 of 2022 [Khurda DCDRC]

Order Dated: 23rd December 2022