Delhi HC stays guidelines that restrained eateries from levying service charges

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When he heard the request of the Indian National Restaurant Association (NRAI) that challenged the new guidelines, Judge Yashwant Varma commented: “Don’t pay. Don’t enter the restaurant. This is a choice of.”

Providing stay, the court has also directed that information about service fees levies must be displayed on the menu card and also displayed so that customers know this fee.What is important, the court also clarifies that service fees cannot be collected on orders brought home. Nrai is very relieved by the passage of this order because the opposite has a direct adverse effect on the human resources used in trade.

In his response to the decision, Nrai said that he was always steadfast in his statement that there was nothing illegal in collecting service fees and that was a very transparent system.”We are very happy that the Delhi High Court has strengthened and confirmed this view. As a responsible restaurant body, Nrai will immediately send advice to all of its members about the conditions described by the Host Delhi High Court and will urge all members to comply with them in totality “he said in a statement.The request of Nrai before the court said: “In the absence of authentication and announcement of guidelines, its contents cannot be treated as government orders”.

“Cost service collection is a contract problem and management decision. Recognition of service fees is displayed in various places in restaurants. The same thing is also displayed on the restaurant menu card. After the customer makes an order after being aware of the terms and conditions that appear as a binding contract. Authority that can interfere with binding nature from valid contracts to and unless it is shown and proven to make no sense or is an unfair trade practice, “he said.

“Cost service billing is trade practices that are universally received. Service costs are collected in various countries such as the United Kingdom, Singapore, Japan and the US with a percentage of varying between 8 percent and 12.5 percent. In the UK, accounting and distribution of service fees are also carried out Through an independent agent through a system called TRONC, “he said further.

Central Consumer Protection Authority (CCPA), which is under the Ministry of Consumer Affairs, has issued guidelines to prevent unfair trade practices and violations of consumer rights in connection with hotels and restaurants that collect service fees, which state that consumers can submit complaints with National Consumer Helpline (NCH) on such practices.

CCPA said that consumers can submit requests to the hotel or restaurant concerned to delete service fees from the amount of bills. Consumers can also submit complaints of unfair trade practices with the Consumer Commission.