Service Charge Ruling: Voluntary Payments Upheld by Delhi High Court

The Delhi High Court ruled that service charges on food bills are voluntary and cannot be mandated by restaurants. Justice Prathiba M Singh dismissed petitions against guidelines that prohibit hotels from enforcing mandatory service charges. This reinforces consumer protection against obligatory fees in dining establishments.

In a significant ruling, the Delhi High Court has declared that service charges on food bills are voluntary, striking a blow to efforts by restaurants and hotels to impose these fees mandatorily. Justice Prathiba M Singh presided over the case, providing clarity on consumer rights in the hospitality sector.

The decision came as a response to petitions filed by restaurant associations challenging the Central Consumer Protection Authority's guidelines, which restrict the imposition of compulsory service charges on customers. The court's judgment reinforces the notion that consumers should have the freedom to decide whether to pay these charges.

This landmark ruling empowers diners, affirming their right to choose and protecting them from undisclosed costs being added to their bills. Restaurants and hotels must now comply with this judgment, ensuring transparency and upholding customer satisfaction.

(With inputs from agencies.)