The Chandigarh Consumer Disputes Redressal Commission has directed Hotel Mountview to refund the booking amount paid for a marriage function that was cancelled. The commission termed the hotel's refusal to refund as an unfair trade practice.
Case Background
The complainant had booked the hotel's banquet hall for a marriage function scheduled in March 2020. Due to the COVID-19 pandemic and subsequent lockdown, the function could not be held. The complainant requested a refund of the booking amount of Rs 1,50,000, but the hotel denied the request, citing its cancellation policy.
Commission's Ruling
The consumer commission observed that the cancellation was due to force majeure circumstances beyond the complainant's control. The hotel's policy could not be applied in such exceptional situations. The commission held that retaining the booking amount amounted to unfair trade practice and directed the hotel to refund the full amount along with interest at 9% per annum from the date of payment.
Additional Directions
In addition to the refund, the commission also ordered the hotel to pay Rs 10,000 as compensation for mental agony and Rs 5,000 towards litigation costs. The order was passed by the commission president and members.
Implications
This ruling sets a precedent for similar cases where services cannot be availed due to unforeseen events like a pandemic. Consumers are advised to retain documentation and seek legal recourse if service providers refuse refunds in such situations.
