Denied stay in Manali resort despite advance booking, Gurgaon family wins Rs 31,000

The order noted that due to the deficient services rendered by the resort in Himachal Pradesh, the complainant not only had to undergo mental harassment, agony and pain, but was also compelled to be dragged into the present unwarranted and uncalled-for litigation.

Booked room, denied stay

The dispute arose after a man and The Allure Grand Resort had settled an earlier consumer complaint on March 15, 2021. Under the settlement, the resort agreed to allow him to book a similar room for four nights at a 40 per cent discount as full and final settlement.

Relying on this assurance, the man booked a stay from October 5 to 9, 2021, paid an advance of Rs 10,000 against the total tariff of Rs 30,400, and travelled from Gurgaon to Manali with his family, including two adults and two children. The advance amount was paid according to the resort’s policy.

But when the complainant reached the hotel for check-in on October 5, 2021, the staff denied them accommodation and returned Rs 10,000 to him. Since the complainant had travelled all the way from Gurgaon to Manali, he requested the hotel staff numerous times to help him out, but to no avail. Left stranded, the man issued a legal notice and later approached the district consumer forum, alleging deficiency in service and seeking compensation.

The resort argued that since it had refunded the advance amount of Rs 10,000, the grievance had already been redressed. It said that after receiving the refund, the complainant should have arranged alternative accommodation on his own. According to the resort, its staff’s refusal to assist the complainant in finding another place to stay did not constitute any deficiency in service.

‘Denial amounted to service deficiency’

The commission observed that the resort failed to honour the settlement dated March 15, 2021, reached in the earlier consumer complaint. Rejecting the resort’s defence that refunding the advance amount was enough, it held that just returning the amount did not erase the deficiency in service. It concluded that the complainant suffered unnecessary hardship and was compelled to take avoidable litigation due to the resort’s deficient services, making him entitled to compensation and litigation costs.

It allowed the complaint and directed the resort to pay the complainant Rs 20,000 as compensation for mental harassment, pain, and agony, along with Rs 11,000 towards litigation expenses within 45 days. On failure to comply, the amount will carry 12 per cent annual interest until realisation.

Takeaway

This ruling reinforces that businesses cannot escape liability merely by refunding advance payments after failing to provide promised services. It underscores that honouring settlements and confirmed bookings is a consumer right, and that inconvenience, mental agony, and avoidable litigation caused by deficient service warrant compensation under the Consumer Protection Act.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Haryana: 1800-180-2087) or dial the National Consumer Helpline at 1915 for assistance.