Pay Rs 1 lakh each for ‘non-compliance’: HC asks restaurant bodies

On April 12, the HC had directed the petitioners to file a complete list of all members who are supporting their pleas by April 30. The HC had further asked the petitioners to file an affidavit about the percentage of their members who impose the service charge as a mandatory condition in their bills. It had asked associations to file if members would have any objection if the term ‘Service Charge’ is replaced with alternative terminology to prevent confusion in the consumer’s mind that it is not a government levy.

The HC had asked petitioners to state the percentage of members who would be open to informing their consumers that the service charge is not mandatory and they can contribute willingly.

On July 24, a single judge bench of Justice Prathiba Singh noted that neither of the petitioners had filed the affidavits in terms of the April 12 order.

“The clear impression that court gets is that petitioners are in complete non-compliance of orders dated 12th April, 2023 and had filed affidavits without serving the respondents properly so as to ensure that the hearing does not proceed before this court,” the HC said.

Additional Solicitor General Chetan Sharma, appearing for the Union of India, said “Approximately 4,000 more complaints have been received from consumers” who had complained that service charges were being imposed by the petitioner associations and its members.

“Accordingly, one last opportunity is granted to the petitioners to properly file these affidavits within four days subject to payment of Rs.1,00,000 as costs in each of the petitions…be paid to the Pay and Accounts Office, Department of Consumer Affairs, New Delhi…,” the HC said adding that if the cost is not deposited the affidavits will not be taken on the court’s record.

The matters are now listed on September 5.