Wedding ‘called off’, luxury resort ordered to refund Rs 8.5 lakh to bride’s father

Wedding cancelled

The complainant stated that he had booked the resort for his daughter’s wedding functions. It was submitted that he and his daughter transferred Rs 10 lakh as advance booking amount. The complainant claimed that no written agreement was executed and that the resort had assured him the advance would be refunded in case of cancellation.

After the marriage was called off, the complainant informed the resort and through emails sought a refund. When the amount was allegedly not returned despite repeated requests and a legal notice, he approached the consumer commission seeking refund of the entire advance along with compensation.

The resort contested the complaint arguing that the complainant had booked the premises through his agent. The resort claimed that the complainant was under an obligation to make the full payment within the stipulated time but he failed to comply with the agreed terms and subsequently cancelled the booking unilaterally. It further stated that due to the cancellation the resort suffered losses and therefore the complainant was liable to pay the full booking amount.

The commission noted that the Rs 10 lakh advance had been transferred directly from the bank accounts of the complainant and his daughter to the resort and not through the agent. The commission further observed that the resort failed to show that the complainant had signed or expressly accepted any agreement containing the forfeiture clause.

The commission held that the resort cannot seek recovery of the entire estimated consideration for services which were never provided. At the same time, it observed that some administrative and booking-related expenses would likely have been incurred. Considering the circumstances, the commission allowed the resort to retain 15 per cent of the advance amount, or Rs 1.5 lakh, and directed it to refund the remaining Rs 8.5 lakh within 45 days.

Takeaway

The order underscores that businesses cannot automatically forfeit the entire advance paid by a consumer following cancellation of a service. In the absence of a clearly accepted forfeiture term, only a reasonable amount to cover genuine booking-related expenses or losses may be retained.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Punjab: 0800–22577) and Union territories or call the National Consumer Helpline at 1915 for assistance.