Chandigarh District Commission holds 145 Bandra Café & Bar responsible for deducting service charge from bill

The District Consumer Disputes Redressal Commission-II, UT Chandigarh, bench comprising Amrinder Singh Sidhu (chairman) and BM Sharma (member) held 145 Café & Bar Bandra liable for deficiency in services and unfair trade practices for charging 10% service charge of Rs. 1,000,000. 101.70 on the invoice amount. The court ordered the restaurant to refund the amount and pay compensation of Rs. 5,000 to…

THE District Consumer Disputes Redressal Commission-II, UT Chandigarh bench of Amrinder Singh Sidhu(President) and BM Sharma (Member) detained 145 Cafe & Bar Bandra responsible for lack of services and unfair trade practices to charge 10% service fee of Rs. 101.70 on the invoice amount. The court ordered the restaurant to refund the amount and pay compensation of Rs. 5,000 to the complainant.

Brief facts:

The complainant visited a restaurant operated by 145 Café & Bar Bandra and consumed several drinks. Upon receipt of her bill, she noticed that the restaurant was imposing a 10% service charge amounting to Rs. 101.70/- for serving 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 21 April 2017, as well to a press release from the Consumer Protection Authority of India. dated July 4, 2022. These two directives stated that the compulsory 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, UT Chandigarh (“District Commission”) and filed a consumer complaint against the restaurant. The restaurant did not appear before the district commission for the proceedings.

Observations of the District Commission:

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

Therefore, the District Commission found that the restaurant was responsible for the lack of services and unfair trade practices. Therefore, he directed the restaurant to refund the amount of Rs. 101.70/- to the complainant. Further, he was ordered to pay lump sum compensation of Rs. 5,000/- to the complainant.

Case title: Mannat Dutt versus 145 Café & Bar Bandra

File number: Consumer Complaint No. 45/2024

Date of decision: May 15^th2024

Click here to read the order