Delhi Consumer Commission Awards ₹8,250 to Zomato Gold Customer for Unfair Cancellation

In a significant ruling for consumer rights, the District Consumer Disputes Redressal Commission V (Northwest Delhi) has ordered food delivery giant Zomato to pay ₹8,250 to a Gold customer for arbitrarily cancelling two orders worth just ₹250.61. The commission, presided over by President Sanjay Kumar and Members Nipur Chandna and Rajesh, deemed the company's actions as a clear deficiency in service and an unfair trade practice.

The Birthday Celebration That Went Sour

Manoj Kumar, a Zomato Gold member, had placed five separate food orders through the platform on August 20, 2024, to celebrate his niece's birthday at Rithala, Delhi. While three orders were successfully delivered to the same address, two orders—one from Pandit Ji Ka Dhaba for ₹146.73 and another from Laxmi Punjabi Dhaba for ₹103.88—were unilaterally cancelled by Zomato. The company claimed that Kumar's phone was "not reachable," despite the successful delivery of the other three orders to the same location during the same time window.

No Defence, No Appearance

Kumar submitted that Zomato refused to refund the amount for the cancelled orders, citing "cancellation charges" for a non-reachable phone. He served a legal notice on the company on September 28, 2024, which went unanswered. Zomato failed to appear before the commission despite service of notice, leading to an ex parte proceeding.

Excuse Dismissed as 'Mere Pretext'

The commission observed that the evidence led by the complainant remained unrebutted. It found Zomato's "not reachable" excuse to be a mere pretext, as three other orders were successfully delivered to the same address. As a Gold member, Kumar was entitled to prioritized service, but Zomato not only failed to deliver the food but also illegally deducted cancellation charges. This constituted gross deficiency in service and an unfair trade practice under the Consumer Protection Act, 2019.

Key Observations

"The OP's contention that the Complainant was 'not reachable' is proven to be a mere pretext , as three other orders were successfully delivered to the same address during the same window," the commission noted. It further stated that the OP's failure to respond to the legal notice highlighted their "adamant and negligent attitude."

What Zomato Must Pay

The commission allowed the complaint and directed Zomato to refund ₹250.61 for the cancelled orders with interest at 6% per annum from the date of the order. Additionally, Zomato must pay ₹5,000 as compensation for the mental agony, harassment, and humiliation faced by the complainant during a family event, and ₹3,000 towards litigation costs. The total amount of ₹8,250.61 must be paid within 45 days, failing which the entire sum will attract interest at 9% per annum from the date of the order.