Restaurant Ordered To Pay Rs 15,000 Compensation Over Service Charge Dispute

The Jalandhar District Consumer Disputes Redressal Commission has directed a city restaurant to refund a service charge of Rs 151.53 and pay Rs 15,000 as compensation and litigation expenses to a customer after finding that the charge was collected without clear consent.

Sanjeev Duggal had visited the restaurant with his family for a buffet dinner on November 8, 2023. Duggal alleged that the restaurant charged buffet fees for four adults even though one of the diners was a minor child. He also objected to service charges added to two separate bills.

According to the complaint, the restaurant charged separate service fees of Rs 128.13 and Rs 23.40 on two bills, amounting to a total of Rs 151.53. Duggal later approached the consumer commission seeking a refund of the charges, compensation, and litigation expenses.

Restaurant's Defence

The restaurant denied the allegations and stated that the amount collected was a staff contribution rather than a mandatory service charge. It said this policy was displayed on the menu and that the charge would be waived off if a customer objected to it.

The restaurant also denied allegations of misbehaviour, poor service, and unfair trade practices. It argued that the complaint had been filed without valid grounds.

Commission Finds No Proof Of Customer Consent

While examining the case, the commission noted that the bills submitted by the complainant clearly described the amount as a service charge levied at 3 per cent.

It observed that the restaurant had not produced evidence showing that the customer had been informed in a clear and unambiguous manner about the compulsory levy of such charges prior to the billing. The commission also noted that the bills referred to the amount as a service charge and not as a staff contribution.

Based on the available records, the commission concluded that the restaurant had collected service charges without obtaining the consumer’s consent.

Other Allegations Not Established

The commission did not accept other allegations regarding staff misbehaviour and poor food quality.

It observed that no independent evidence had been submitted to support claims of misbehaviour. It also noted that no material had been produced to establish that the food served was of sub-standard quality.

The commission said that allegations alone were not sufficient to prove these claims.

Compensation And Refund Ordered

The commission held that charging service fees without consent amounted to an unfair trade practice. It further observed that the consumer had suffered mental harassment because of the dispute.

Accordingly, the restaurant was directed to refund Rs 151.53 and pay Rs 15,000 towards compensation and litigation expenses to the complainant.