Notice issued by consumer panel; restaurant settles matter by paying over 30 times the amount

A restaurant in Khan Market paid ₹18,000 as compensation to a customer who had moved a consumer forum seeking directions for refund of the service charge amount.

After the restaurant staff allegedly misbehaved over his refusal to pay over ₹500 as service charge, Nihit Dalmia filed a petition in a district consumer forum here seeking directions for refund.

“I had gone to Harry’s Bar and Café in Khan Market last year and ran up a bill of ₹7,294. The total included an 10% extra service charge of ₹557 and tax of ₹105.32 on the service charge amount. When I asked the staff to remove the service charge, they misbehaved and said it was mandatory to pay service charge as it was written on the menu,” said Mr. Dalmia.

After notices were issued by the consumer panel, the restaurant agreed to settle the matter by paying over 30 times the service charge amount.

“The restaurant authorities called from Mumbai after notices were issued and apologised for the rude behaviour. I was paid a compensation of ₹18,000 in August and the matter was settled,” he said.

In his plea, the complainant had contended that the restaurant had indulged in “unfair and restrictive trade practices” by raising four bills for the same order and charging service charge on all the bills separately.

“The Ministry of Consumer Affairs, Food and Public Distribution guidelines state that it is not mandatory for consumers to pay service charge at restaurants and that it is solely the discretion of consumers if they want to pay the amount or not. In the interest of justice, the claim amount and the compensation should be allowed with interest on the said amount,” read the plea.