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Consumer Panel Orders Hotel to Refund Wedding Funds

Summary

  • Hotel ordered to refund Rs 2 lakh advance and pay Rs 11,000.
  • Wedding cancelled due to COVID-19 pandemic and government restrictions.
  • Hotel failed to provide evidence for retaining booking amount.
Consumer Panel Orders Hotel to Refund Wedding Funds

A Jaipur consumer commission mandated a hotel to refund Rs 2 lakh in advance payments and an additional Rs 11,000 for compensation and legal costs. This decision followed the cancellation of a wedding originally booked for April 29-30, 2021, for which Rs 6.25 lakh was paid. The commission ruled that the hotel's retention of the advance was unjustified due to extraordinary circumstances.

The cancellation occurred because of the COVID-19 pandemic and subsequent government restrictions, which made the planned large gathering impossible. The commission noted that the hotel did not provide adequate documentary evidence to support its claim of incurring approximately Rs 5 lakh in expenses for the arrangements. Consequently, the hotel was ordered to refund the admitted advance.

This ruling underscores consumer rights against unfair trade practices. The commission emphasized that contractual clauses do not automatically grant hotels the right to retain advance payments under all circumstances, especially when cancellations are due to events beyond the consumer's control. Consumers are advised to keep thorough records of all agreements and communications.

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Property Code: 5571