Booking app, airline to pay Rs 70,000 after passenger ‘denied’ return ticket money

“Considering the fact that the tickets were partially refundable as also the fact that ‘Airlines do not provide the split of fare for the onward and return journey. If you choose to cancel one leg of the journey and airlines permit, refund will be processed on actual ticket fare which airlines provide at the time of cancellation”, both the opposite parties (Paytm Bank and Air India) are guilty for non-process of refund of one-way ticket,” the commission said on July 1.

Unexpected change of plans

One Neeraj Kumar Kanojia claimed that he had reportedly booked round-trip Air India tickets from Delhi to London for himself and his wife through Paytm. He had his journey planned, and he allegedly proceeded to buy the tickets to travel between July 26 and September 14, 2024. He claimed that he paid Rs 1.16 lakh, including a Paytm convenience fee of Rs 2,396 for the said trip. 

The man’s counsel, Advocate Parvez Saifi, argued that after an unexpected change of plan, his client sought cancellation of only the return ticket from London to Delhi, first raising the request on August 16, 2024, and again in person at the Paytm office a week later.

The man claimed that Paytm’s representatives repeatedly assured him that the request was being escalated to Air India, but on August 31, 2024, he was informed by email that the ticket was “fully non-cancellable and non-refundable after onward used fare,” and the cancellation could not go through.

The man argued that this was directly contrary to the terms printed on the ticket itself, which stated the airline allowed cancellation up to four hours before departure and permitted cancellation of the return journey once the onward journey was completed. Subsequently, he moved commission seeking Rs 72,600 towards the return fare, along with compensation and litigation costs.

Advocate Amresh Kumar Jha appeared for Paytm, but the commission noted that Paytm’s reply was not filed within the given timeline and therefore could not be taken on record; Air India did not appear despite due service of notice.

Beyond limitation period

The commission examined the ticket and found that it explicitly stated the fare was “partially refundable” for both legs of the journey, contradicting the airline’s position that the booking was fully non-refundable.

It also noted that airlines do not split the fare between onward and return tickets, so where cancellation is permitted, the refund must be calculated on the actual fare at the time of cancellation, not withheld altogether.

Since the actual cancellation fee could not be precisely worked out from the record, the commission directed Air India to pay Rs 50,000 towards the refund of the return ticket, with 7 per cent annual interest from August 16, 2024, the date the cancellation was first sought.

Paytm was also directed to pay an additional Rs 20,000 in compensation for failing to ensure the refund was processed. The commission directed the companies to pay the said amount within three months, failing which 8 per cent annual interest will apply until realisation.

Takeaway

The ruling establishes that airlines and booking platforms will be held strictly accountable for wrongfully withholding refunds for unused flight legs, and clarifies that intermediary platforms cannot evade responsibility by simply hiding behind an airline’s arbitrary refusal.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi Consumer Commission Helpline: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.

(Written by Avinash Verma, Avinash is an intern with The Indian Express)