overcharging of mineral water - contempt of court
Reshma V
(Querist) 07 September 2010
This query is : Resolved
Hi Raj Kumar Makkad,
To my earlier query on the sam eissue you responded that,Its illegal practice to overcharge mineral water in restaurants but some one should come forward to resist it and bring such hotels to High Court under contempt of court act.
May you please suggest what can be done in such a case? How much more can they charge?
Please advice.
Reshma.
A V Vishal
(Expert) 07 September 2010
FEDERATION OF HOTELS & RESTAURANTS ASSOCIATION OF INDIA AND OTHERS v. UNION OF INDIA & ORS [2007 CTJ 352 (DEL) (CP)] Vikramajit Sen, J. [Decided on 5.03.2006]
Hotels and restaurants – Sale of Mineral water – Price charged more than MRP – Whether violates any provisions of Standards of Weights and measures Act – Held, No. Whether such supply could be treated as sale – Held, No.
Brief facts : Facts are immaterial for this case. The issue before the court was whether a hotel or restaurant could serve mineral water at a price more than its MRP ?
Decision : They can serve.
Reason : The question before the High Court was whether it was permissible for the petitioners, the hoteliers and restaurateurs, to charge their customers/guests any price above the maximum retail price (MRP) mentioned on the packaged mineral water/ included aerated soft drinks, mineral water and drinking water. This may be so but the sweep and intendment of the SWM Act and Rules are palpably obvious from the fact that in respect of these commodities it is the packaging thereof which has been specifically dealt with. A reading of Section 33 fortifies the conclusion that the Act is primarily concerned with the display of weight, measure, number, MRP etc. on the packaging and does not travel further to punish the charging of a price in excess of the stated MRP. The discussion would not be complete without some reference to the decision s of the Delhi State Commission. Under the Consumer Protection Act, 1986 (‘CP Act’ in brief) where the charging of prices beyond the MRP have been held to violate the statute. Prima facie, however, it appears to me that learned counsel for the parties had obviously not brought to the notice of the Commission the decision of the Supreme Court in Associated Hotels and Northern India Caterers, which leave no room for argument that supply or service of eatables and drinks in hotels and restaurants does not partake of the nature of a ‘sale’ in common legal parlance. Hence, when a person goes to a hotel or restaurant and while he is there orders and consumers such commodities this does not fall within the definition of consumption as contained in Section 2(1)(d) of the Consumer Protection Act. Forcing the provisions of Consumer Protection Act in such circumstances would run counter to the law laid down in Associated Hotel and Northern India Caters. These observations are obviously made en passant. In the above analysis I hold that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the SWM Act as this does not constitute a sale or transfer of these commodities by the Hotelier or Restaurateur to its customers. The customer does not enter a hotel or a restaurant to make a simple purchase of these commodities. It may well be that a client would order nothing beyond a bottle of water or a beverage, but his direct purpose in doing so would clearly travel to enjoying the ambience available therein and incidentally to the ordering of any article for consumption. Can there be any justifiable reason for the Court or Commission to interdict the sale of bottled mineral water other than at a certain for a cup of tea or coffee. The response to this rhetorical query cannot but be in the negative.
Reshma V
(Querist) 08 September 2010
Thanks A V Vishal, but here my query is how much more than the MRP can be charged? sometimes its 2 or even 3 times the MRP... Is this justified? Is this legal practice? Please advice.
A V Vishal
(Expert) 08 September 2010
As per the court ruling there is no specific yardstick what & how much can be charged over MRP, it is the discretion of the hotel/restaurant.
