The District Consumer Disputes Redressal Commission, Jalandhar, has ruled that levying service charges on customers without their prior consent constitutes an unfair trade practice, directing Maya Inns Pvt. Ltd. to refund the disputed amount and pay ₹15,000 in compensation, including litigation costs. The order, which must be complied with within 45 days, follows a complaint filed by Sanjeev Duggal, a practising advocate from Phagwara.

What Triggered the Complaint

Duggal had visited the restaurant on 8 November 2023 for a buffet dinner with three adults and one minor child. He alleged that the restaurant billed the minor as an adult and levied service charges of ₹128.13 and ₹23.40 across two separate bills — totalling ₹151.53 at a rate of 3 per cent — without seeking his consent. He further alleged that when he raised an objection, restaurant staff behaved inappropriately toward him. Duggal had originally sought ₹5 lakh in compensation for mental agony, harassment, and humiliation, along with a full refund of the service charges.

The Restaurant's Defence

Maya Inns contested the complaint, arguing that the amount was collected as a 'staff contribution' — a charge it claimed was prominently displayed on the menu card — and maintained that the levy would have been waived had the customer raised an objection at the time. The restaurant also cited interim orders by the Delhi High Court in proceedings relating to service charges levied by hotels and restaurants. It nonetheless expressed willingness to refund the ₹151.53 in dispute.

What the Commission Found

After examining evidence and hearing both parties, the commission noted that the restaurant's own billing documents described the levy as 'service charges' — not 'staff contribution' — directly contradicting its defence. The commission held that regardless of how the charge was characterised, the restaurant was under a duty to inform customers clearly and in advance. 'The entire pleadings and even the documents, nowhere show that the complainant was ever informed beforehand in a clear and unambiguous manner regarding the compulsory levy of such service charges/staff contribution,' the commission observed in its order.

'It is proved that the OP charged service charges and not the staff contribution, without obtaining consent from the consumer, which constitutes an unfair trade practice and the complainant is entitled to a refund of the said amount,' the commission said.

What Was Rejected

The commission partly allowed the complaint, declining to accept Duggal's allegations of staff misbehaviour, sub-standard food quality, and incorrect billing of the minor child, finding these claims unsupported by adequate evidence. 'There is no evidence on the record to substantiate the allegations of misconduct, threat, humiliation of the complainant,' it noted. His claim for ₹5 lakh in compensation was consequently not granted.

The Order and Its Implications

The forum directed Maya Inns to refund ₹151.53 along with interest from the date of filing of the complaint until realisation, and to pay ₹15,000 — inclusive of litigation expenses — as compensation for mental tension and harassment. Compliance is required within 45 days of receipt of the order. This ruling adds to a growing body of consumer forum decisions across India reinforcing that service charges cannot be imposed on diners without explicit, prior consent — a position that aligns with central government guidelines on the matter.