New Delhi, April 29 (HS): The order by the Single Bench of the Delhi High Court, stating that payment of service charges in hotels and restaurants is at the customer’s discretion, has been challenged in the Division Bench. This case, overseen by Chief Justice D.K. Upadhyay, had a hearing scheduled for Tuesday, which did not occur due to technical issues, with the next hearing set for May 9.

The Federation of Hotel and Restaurant Associations of India and the National Restaurant Association of India are contesting Justice Pratibha Singh’s Single Bench ruling from March 28, which stated that businesses cannot compel customers to pay service charges.

The original petition challenged a July 2022 order by the Central Consumer Protection Authority, which the Single Bench had previously stayed, arguing that the authority lacked jurisdiction to ban such charges and failed to hear the petitioners.

The Central Government countered, claiming no evidence supports that service charges benefit restaurant staff. The petition maintains that service charges, a longstanding practice, are noted on menus and benefit restaurant operations.

Hindusthan Samachar / Jun Sarkar