New Delhi, Feb 15 (IANS) The Delhi High Court on Wednesday posted, to April 12, the hearing on petitions filed by restaurant associations contesting the rules that forbid hotels and restaurants from automatically adding a service charge to meal bills.
The Central Consumer Protection Authority (CCPA) released the rules on July 4 last year, and the high court later that month stayed them.
A single-judge bench of Justice Pratibha M. Singh was dealing with the matter where the Centre argued that the recommendations were released in the best interests of consumers and urged the court to take the matter into consideration, including its plea for the vacation of the stay order.
It further apprised the court that certain restaurants were currently relying on the interim order to create the image that they are permitted to impose service charges.
Justice Singh said that without hearing the parties, the interim order cannot be modified and added that the application for a vacation of stay shall be taken into consideration if the main case cannot be heard on the next date.
Counsel appearing for the petitioners said the service charge, which has been in existence for the last several years, is a “traditional charge” and is distributed among those who “are not before the customers”, and restaurants are seeking it after displaying due notice of the same on their menu cards and in their premises.
The petitioners further claimed that the CCPA’s order is arbitrary, untenable and ought to be quashed.
The CCPA has, however, sought dismissal of pleas and said in its affidavit that the petitioners have totally failed to appreciate the rights of the consumers by adopting unfair method, which is unlawful as no service is separately provided to consumers.
–IANS
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