Mandatory Service Charge Without Consent Is Illegal: Lawyer Wins Rs.15,000 After Challenging Rs.151 Restaurant Fee

The Jalandhar Consumer Commission directed a restaurant to pay Rs 15,000 compensation to a lawyer after finding that a mandatory service charge of Rs 151.53 was added without consent. The forum held that such automatic charges amount to an unfair trade practice.

Delhi High Court to Restaurants: Why Charge Service Fee When You Already Hike MRP?

Delhi High Court questioned restaurants for levying service charges despite already charging above MRP for food and drinks. The bench said ambience and service are included in the inflated prices, calling the extra charge unfair.

Delhi High Court: “Restaurants Aren’t Permitted to Impose a Mandatory Service Charge on Food Bills”

Today, On 28th March, The Delhi High Court ruled that service charges on food bills are voluntary and cannot be imposed mandatorily by restaurants. The court emphasized that customers have the right to choose whether to pay the charge. It rejected any practice of forcing diners to bear additional costs. This decision reinforces consumer rights in the hospitality sector.