5 min readNew DelhiJul 24, 2026 05:00 PM IST
A Mumbai consumer body has ordered a tour company to refund a senior citizen who had paid Rs 1.89 lakh for an Australia tour that was cancelled in 2020, holding that issuing a credit note without the customer’s consent instead of a cash refund amounts to deficiency in service. The company was ordered to refund Rs 1.78 lakh with interest, besides paying Rs 40,000 towards compensation and litigation costs.
President Samindara R Surve and member Sameer S Kamble of the Mumbai District Consumer Disputes Redressal Commission passed the order while deciding a complaint filed by Anjudevi D Jajodia against Neem Holidays Private Limited. The complaint sought a refund after her Australia holiday was cancelled during the Covid-19 pandemic and the travel company issued a credit note instead of returning the money.
“The Opposite Party (Neem Holiday Private Limited) failed to refund the balance amount to the Complainant and issuance of the Credit Note for the future tour without obtaining any prior consent of the Complainant, this conduct of the Opposite Party amounts to a deficiency in service and unfair trade practice,” the commission said on June 25.
The dispute traces back to the first wave of the Covid-19 pandemic, when international travel came to a halt, and thousands of travellers were left waiting for refunds. While businesses across the travel sector offered vouchers and credit notes to mitigate losses, the commission held that such alternatives cannot be imposed on consumers seeking a refund, particularly where consent is absent.
Trip cancellation, company’s defence
According to the complaint, the woman booked a 10-night, 11-day tour of Australia through Neem Holidays for April 2020. The package, priced at Rs 1,89,750, included airfare, visa charges, accommodation in three-star hotels, meals and sightseeing.
She paid Rs 89,750 on November 12, 2019, followed by another Rs 1 lakh on March 2, 2020. However, the outbreak of Covid-19 and the suspension of international flights resulted in cancellation of the tour. Instead of refunding the amount, the company issued a credit note worth Rs 1,78,750 after deducting Rs 11,000 towards visa charges. The credit note remained valid until September 30, 2022.
The complainant, who is a senior citizen, later decided not to undertake the tour and sought a cash refund. After the company failed to refund the money despite a legal notice dated April 19, 2021, she approached the consumer commission.
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Neem Holidays contested the complaint, arguing that the cancellation resulted from the Central government’s Covid-19 travel restrictions issued on March 26, 2020, and therefore there was no deficiency in service. It also justified deducting Rs 11,000 towards visa charges by producing the Australian visa issued to the complainant. The company further contended that she could use the credit note and travel once restrictions were lifted.
‘Can’t compel senior citizen to take trip’
The commission accepted that the deduction of Rs 11,000 towards visa charges was justified since the visa had already been obtained and the complainant had not disputed that fact. However, it held that the company was not justified in refusing to refund the remaining amount or issuing a future travel credit without first obtaining the customer’s consent.
It also observed that the complainant, being a senior citizen, could not be compelled to undertake the trip against her wishes just because travel restrictions had later eased. Rejecting the company’s reliance on Supreme Court rulings relating to Covid-era airline refunds, the forum said those decisions were inapplicable because the tour operator had failed to provide details of any airline ticket bookings in the present case. It further held that the complainant had successfully established deficiency in service through the conduct of the travel company.
Refund, compensation
Allowing the complaint in part, the commission declared that the travel company had committed deficiency in service and adopted an unfair trade practice.
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It directed Neem Holidays Private Limited to refund Rs 1,78,750 with interest at 9 per cent per annum from June 30, 2021, until payment. The company was also ordered to pay Rs 30,000 as compensation for the mental agony and harassment caused to the complainant and Rs 10,000 towards litigation costs. All payments have been directed to be made within 60 days from receipt of the order.
Consumer takeaway
Consumers cannot be forced to accept a travel credit note instead of a cash refund without their consent. If a travel company issues a voucher or credit note unilaterally, it may amount to deficiency in service and an unfair trade practice. Consumers are entitled to seek a refund through consumer commissions if their rights are violated.
Consumers facing similar grievances may contact the consumer helpline in their respective states (Maharashtra: 1800-2222-62) or dial the National Consumer Helpline at 1915 for assistance.
