Delhi District Commission Holds Pearl Grand Galaxy Banquet Hall Liable For Failure To Refund Advance Amount

The Delhi District Consumer Disputes Redressal Commission, New Delhi bench comprising Poonam Chaudhry, President and Shekhar Chandra, Member has held Pearl Grand Galaxy banquet hall liable for failure to refund the advance amount on account of cancellation of bookings due to Covid-19. Brief facts: The complainant visited Pearl Grand galaxy banquet hall ('Opposite party') in December 2021 for booking a hall to solemnize the marriage of his son. The opposite party demanded a sum of Rs. 2,00,000/- for booking two functions- 'Haldirasham' and 'Dinner' to be held on 19.01.2022. A sum of Rs. 67,000/- was paid as advance by the complainant as booking amount. After sometime, the complainant was informed over phone by the opposite party regarding cancellation of bookings on account of Covid. Thus, a refund was sought by the complainant of the advance paid by him but no response was received. After waiting for six months, the complainant sent a complaint to the office of DM and SDM against the Opposite party but did not receive the refund. Hence a complaint was filed by the complainant alleging deficiency in service on the part of the opposite party- banquet hall. Submissions by opposite party: The opposite party submitted that the complaint was not maintainable because the receipt issued at the time of booking clearly stated that the advance amount was “not refundable/transferable in any case,” and therefore both parties were bound by the terms of the contract. The opposite party further contended that the complainant had concealed material facts and misled the Commission. It was stated that out of the total agreed amount of ₹2,00,000, a sum of ₹48,500 had been paid as advance/booking amount, which had already been spent on decoration, catering, and other required preparations as per the complainant's instructions. Observations of the commission: The Commission placed reliance on the judgment of the Supreme Court in Pravasi Legal Cell v. Union of India, 2020 SCC OnLine SC 799, wherein it was held that if a booking was made during the lockdown period and the service provider had received payment, the entire amount must be refunded without levying any cancellation charges. The principles laid down in this decision were found fully applicable to the present case. Upon analysing the material on record, the Commission observed that the opposite party had admittedly not provided any services to the complainant, as the events could not take place due to the Covid-19 lockdown and government-mandated restrictions. Despite this, the opposite party retained the booking amount. The Commission held that the opposite party cannot be allowed to unjustly enrich itself by keeping the complainant's money without rendering any service. Hence, the complaint was allowed with the following reliefs: Refund of Rs. 67,000/- Rs. 50,000 as compensation for mental agony and harassment Rs. 50,000 as litigation expenses Case Title: Sh. Rajiv Kumar vs Pearl Grand Galaxy Case Number: Case No. 20/2024 Date of Decision: 05.12.2026 Click Here To Read/download Order

Delhi District Commission Holds Pearl Grand Galaxy Banquet Hall Liable For Failure To Refund Advance Amount

Aakanksha Bajoria

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