The Supreme Court on Friday reserved its order on petitions seeking refund for tickets booked on flights that were cancelled owing to the Covid-19 lockdown, with the Centre clarifying that the proposed ‘credit shell’ can only be in the name of the passengers even in cases where the tickets were booked though travel agents.
The Directorate General or Civil Aviation (DGCA) had earlier told the court that the rules require immediate refund but given the financial distress of some airlines amid the pandemic, it suggested setting up a transferrable credit shell with life upto March 31, 2021 and refund if it still remains unused on the cut-off date.
The apex court had then asked the Centre to explain the status of refund in cases where tickets are booked through travel agents.
On Friday, Solicitor General Tushar Mehta told a bench of Justices Ashok Buishan, R Subhash Reddy and MR Shah the regulatory framework only recognises the contract between a passenger and airline and not between travel agents and airlines.
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