4 min readNew DelhiJul 31, 2026 11:00 AM IST
A Delhi consumer commission has found a resort developer guilty of deficiency of service after it refused to refund the advance amount of Rs 2 lakh paid by a man who allegedly had booked its banquet hall for his daughter’s wedding, which was scheduled during the COVID-19 lockdown in May 2021 but was eventually organised at home due to pandemic restrictions.
President Divya Jyoti Jaipuriar and member Harpreet Kaur Charya directed the resort developer to refund Rs 2 lakh and pay Rs 35,000 as compensation, observing that the function at the venue could not be held due to a force majeure event (extraordinary, unforeseeable, and unavoidable occurrences).
“It is not in dispute that opposite party 1 (resort) is the sister concern of opposite party 2 (Krish Developers Pvt Ltd). From the above discussion, it is held that opposite party-2 has indulged in deficiency in service and unfair trade practice by not refunding the amount received from the complainant,” the July 13 order read.
The commission was hearing the complaint filed by one Naresh Kumar Madaan who allegedly booked a banquet hall, City Park Green Resort, for his daughter’s marriage in May 2021.
Wedding shifted home due to COVID restrictions
The complainant claimed that on January 17, 2021, he booked the resort for his daughter’s wedding which was scheduled on May 22, 2021 for 350 persons. They agreed on an amount of Rs 10,68 lakh for hosting the function, and the man allegedly paid Rs 2 lakh in advance—Rs 1 lakh in cash on January 17 and Rs 1 lakh through NEFT on February 12, 2021.
However, as COVID-19 cases surged, the Delhi Disaster Management Authority (DDMA) imposed curfew and prohibited marriages at banquet halls, hotels and similar venues, permitting only home or court weddings with a maximum of 20 attendees.
On May 19, 2021, the man requested the resort and its developer to refund Rs 2 lakh paid to them as advance, but they did not give any response. Later, the man added that a simple marriage ceremony was organised at home on May 22, 2021, in the presence of family members only.
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The man has alleged that he approached the resort and its developer several times, but there was no response and subsequently moved to the commission seeking refund and compensation on account of mental agony, physical harassment, etc.
‘Exceptional circumstance’
The commission noted that the Delhi Disaster Management Authority orders clearly prohibited public gatherings and marriages at banquet halls during the relevant period due to the COVID-19 pandemic.
It held that the cancellation of the banquet hall for the said marriage was a direct consequence of an extraordinary force majeure event and not due to any actions of the complainant. “Such exceptional circumstances cannot be treated on par with ordinary contractual situations,” the commission added.
The commission directed the resort developer to refund Rs 2 lakh with interest at the rate of 7 per cent per annum from January 17, 2021 to February 12, 2021(date of respective payment) till its realisation. The resort developer was also asked to pay Rs 35,000 as compensation on account of mental harassment and agony, inclusive of litigation expenses, within 30 days.
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Resort’s defence
The resort submitted that the complainant had signed a banquet booking agreement on January 17, 2021, under which the booking amount was expressly non-refundable. It also claimed that only Rs 1 lakh had been paid via NEFT and denied having received Rs 1 lakh in cash, arguing that it did not accept cash payments from customers. The resort further submitted that it had suffered substantial business losses during the pandemic while continuing to pay employees’ salaries.
Significance of ruling
This ruling highlights that a banquet hall or resort cannot rely on a non-refundable booking clause to retain advance payments where a wedding becomes impossible due to force majeure events such as COVID-19 restrictions.
For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.
