The wedding season has arrived and advance booking of banquet halls for wedding ceremonies has also been done at many places. The relationship between consumers and banquet halls is governed by the Consumer Protection Act, 2019. Although it is expected that everything goes well during wedding ceremonies, but sometimes some things go wrong, for example, issues like booking cancellation, poor services or unhygienic food may arise. Let us understand what rights consumers have under the Consumer Law. Refund of booking amount Banquet hall owners cannot arbitrarily confiscate the entire booking amount if a customer cancels the booking. For this the case of Premsingh vs Resort Rio can be seen. The Goa State Commission clearly held that the advance payment cannot be confiscated unless there is an express agreement in this regard. The terms of possession must be clearly communicated at the time of booking and both parties must agree to them. Consumer forums have, in many cases, directed for a refund of the booking amount to the hall along with interest if a booking is canceled due to an emergent medical condition. Proportional Refund Structure Consumer forums have developed a balanced approach to refunds. The National Commission laid down important principles in the case Ram Mangal Sanskriti Bhawan vs. Anand Koli (2024). For services like decoration that are performed closer to the event date, halls can retain up to 25 percent of that specific component. However, in case of cancellation of booking of that hall, re-booking of the hall is not possible on that particular date, then the hall operator may retain a higher portion of the booking amount. The principle is only that the actual loss should be compensated. quality of food Any deficiency in the quality of service can be challenged under Section 2(11) of the Consumer Protection Act, 2019. In the case Tarun Ray vs Peerless Inn (2017), the National Consumer Commission ordered compensation when guests fell ill after eating contaminated food at a wedding reception. The important thing in the order was that the Commission clarified that it is not necessary for all the guests to fall ill to prove that the food in the banquet hall was contaminated. If even some guests fall ill, it becomes an issue of deficiency in service. Terms printed on receipts are not binding Section 2(9) of the Act gives consumers the right to be informed about all terms and conditions. Banquet halls must provide written documentation regarding all booking conditions, particularly cancellation and refund policies. The terms and conditions printed on receipts are not binding unless specifically agreed to in writing. unexpected circumstances The COVID-19 pandemic has focused attention on unexpected circumstances in banquet booking. If any government restrictions prevent an event, banquet halls should offer alternative dates or refunds.
relief to consumers Consumers can approach consumer commissions for quick redressal. The complaint must be filed within two years from the date on which the cause of action arose. Generally the Commissions have given various types of reliefs in various cases. These also include refund of booking amount along with interest. Generally the interest is determined at 9% per annum for the period from actual payment to the date of cancellation. Compensation for mental anguish is also provided in cases of willful deficiency in service. The amount of compensation in the Premsingh case was Rs 25,000, while in cases where Hall acted arbitrarily, compensation up to Rs 50,000 was awarded. Successful complainants are also awarded litigation costs. However, having proper documentation, including booking receipts, written communications with the hall operator and evidence of any deficiency in service, such as photographs, videos or medical records of a food poisoning case, can help strengthen the case.
(The author is also Secretary, CASC.)
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