A customer in Delhi has successfully secured a refund and compensation after a restaurant allegedly forced him to pay a service charge despite his objections. The South Delhi District Consumer Disputes Redressal Commission found House of BOHO guilty of unfair trade practices and ordered the establishment to repay the disputed amount with interest, along with additional compensation for the harassment caused.
Customer Alleges Coercion Over Service Charge
The case was brought forward by Neeraj Dubey, who claimed that on October 19, 2024, after dining at House of BOHO with his family, he was presented with a bill totaling ₹11,761, which included a ₹949 service charge. Dubey objected to this charge, citing Central Consumer Protection Authority (CCPA) guidelines that explicitly state service charges are voluntary and cannot be imposed on consumers.
According to Dubey's complaint, when he refused to pay the service charge, restaurant staff surrounded his table, threatening him and his family. He alleged they were prevented from leaving the premises until the full bill, including the contested service charge, was settled.
Commission Rules Against Restaurant
The South Delhi District Consumer Disputes Redressal Commission, presided over by Monika A. Srivastava and Member Kiran Kaushal, reviewed the complaint. The commission observed that the collection of service charges under various descriptions is misleading and constitutes an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.
Despite being served notice, House of BOHO failed to appear before the commission. Consequently, ex parte proceedings were initiated on April 8, 2025, leading to a decision based on the complainant's evidence and submissions. The commission's ruling referenced a Delhi High Court judgment that upheld the validity of the CCPA's guidelines on service charges.
Refund, Interest, and Compensation Awarded
The commission issued a directive for House of BOHO to:
- Refund the ₹949 collected as a service charge.
- Pay 7% annual interest on the refunded amount, calculated from the date of payment until its realization.
- Provide ₹25,000 as compensation for the harassment caused by the unfair trade practice.
The restaurant has been given three months from the date of the order to comply with these directives. Failure to do so will result in an additional penalty of 6% annual interest on the entire awarded amount until the payment is fully realized.