Consumer court orders 145 Cafe & Bar Bandra to refund service charges, pay compensation for unfair trade practices

In a significant ruling, the District Consumer Disputes Redressal Commission-II, UT Chandigarh, has ordered 145 Cafe & Bar Bandra to refund service charges and pay compensation for indulging in unfair trade practices. The case, Consumer Complaint No. 45/2024, was filed by Mannat Dutt against the cafe for forcefully imposing 10% service charge.

Background of the case:

Mannat Dutt, a resident of Chandigarh, visited 145 Cafe & Bar Bandra on September 22, 2022. Upon receiving her bill, she noticed a 10% service charge amounting to Rs. Dutt claimed that these charges were imposed without her consent, which she said constituted an unfair trade practice as per the guidelines issued by the Ministry of Consumer Affairs and the Central Consumer Protection Authority (CCPA).

Legal issues involved:

The main legal question in this case was whether the cafe’s imposition of service fees constituted an unfair trade practice. The Department of Consumer Affairs issued an order on April 21, 2017, and the CCPA issued a press release on July 4, 2022, both declaring that mandatory service charges imposed by restaurants and hotels constitute unfair trade practices.

Court decision:

The affair was chaired by Mr. Amrinder Singh Sidhu, Chairman, and Mr. BM Sharma, Member. The opposite party, 145 Cafe & Bar Bandra, failed to appear before the commission, leading to an ex parte decision.

The court observed that the complainant successfully demonstrated that the cafe had charged Rs. 101.70 as service charge, which was against the guidelines. The court said, “It appears from the complaint that the opposite party has wrongly charged Rs. the hotel and restaurant by the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) by order of 04.21.2017 and the Central Consumer Protection Authority.”

Order:

The commission ordered 145 Cafe & Bar Bandra to:

1. Refund the service charge of Rs. 101.70 to Mannat Dutt.

2. Pay a lump sum compensation of Rs. 5,000 for harassment and mental agony.

3. Comply with the order within 90 days, failing which interest of 9% per annum would be charged on the amount awarded.

The court also ordered that certified copies of the order be sent free of charge to the parties as required by the rules and law under the Consumer Protection Rules and Act.

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Lawyers:

– Ms Shiti Jain Dutt, counsel for the complainant

Evenings:

– Complainant: Mannat Dutt

– Opposite Party: 145 Café & Bar Bandra, Rise Hospitality Pvt. Ltd.

File number:

– Consumer complaint no. 45/2024