$~1(SB) & 2(SB)

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IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of Decision: 5^th September, 2023

+

W.P.(C) 10683/2022 & CM APPLs. 31033/2022, 38992/2023 &

45891/2023

NATIONAL RESTAURANT ASSOCIATION OF INDIA

& ORS.

..... Petitioners

Through:

Dr. Lalit Bhasin, Ms. Nina Gupta,

Ms. Ananya Marwah & Mr. Ajay

Pratap

Singh,

Advocates.

(M:

9953947026)

versus

UNION OF INDIA & ANR.

..... Respondents

Through:

Mr. Sandeep Mahapatra and Mr.

Kirtiman Singh, CGSCs with Mr.

Abhinav Bansal, Ms. Vidhi Jain, and

Ms. Kritika Sharma, Advs.

2(SB)

AND

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W.P.(C) 10867/2022 & CM APPLs. 31645/2022, 38599/2022

FEDERATION OF HOTEL AND RESTAURANT ASSOCIATIONS

OF INDIA & ORS.

..... Petitioners

Through:

Mr. Sandeep Sethi, Senior Advocate

with Mr. Sameer Parekh, Mr. Sumit

Goel, Ms. Sonal Gupta, Ms. Swati

Bhardwaj & Mr. Abhishek Thakral,

Advs. (M:7042611876s)

versus

UNION OF INDIA & ANR.

..... Respondents

Through:

Mr. Sandeep Mahapatra and Mr.

Kirtiman Singh, CGSCs with Mr.

Sugam Kr. Jha, Ms. Osheen Verma,

Mr. Abhinav Bansal, Ms. Vidhi Jain,

and Ms. Kritika Sharma, Advs.

Digitally Signed

By:DHIRENDER KUMAR

Signing Date:06.09.2023

22:11:51

Signature Not Verified

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J.(Oral)

1. This hearing has been done through hybrid mode.

2. The Petitioners in the present petitions are Associations of hotel and

restaurant owners. The challenge in these writ petitions is to the guidelines

dated 4^th July, 2022 issued by the Central Consumer Protection Authority

(hereinafter ‘CCPA’) and the consequential communication issued on 6^th

July, 2022 to all the District Collectors for enforcing the guidelines of 4^th

July, 2022.

3. Notice was issued in the present two petitions on 20^th July, 2022. On

the said date, the Court stayed the effect of paragraph 7 of the impugned

Guidelines dated 4^th July, 2022. The said stay order was subject to the

condition that the members of the Petitioner associations prominently

display on the menu and other places that ‘Service Charge’ is being charged

by the establishment. It was also directed that the no ‘Service Charge’ be

included on ‘take-away’ items. Thereafter, an appeal was preferred against

the order dated 20^th July, 2023 by the Respondents challenging the interim

stay of the guidelines dated 6^th July, 2022. Vide order dated 18^th August,

2022, the ld. Division Bench of this Court remanded the matter, with the

direction to pass appropriate orders in respect of the application for vacating

the stay order issued on 20^th July, 2023.

4. Vide order dated 12^th April, 2023, this Court while taking up both

these petitions for hearing had issued the following directions:

Digitally Signed

By:DHIRENDER KUMAR

Signing Date:06.09.2023

22:11:51

Signature Not Verified

both

the

associations/federations shall file a complete list of all

their members who are supporting the present writ

petitions. The said list shall be filed by 30th April

Digitally Signed

By:DHIRENDER KUMAR

Signing Date:06.09.2023

22:11:51

Signature Not Verified

5. Ld. Counsels for both the Petitioners claim that the affidavits in terms

of the order dated 12^th April, 2023 have been placed on record by the

National Restaurant Association of India (‘NRAI’) and Federation of Hotel

and Restaurant Associations of India (‘FHRAI’). The position that emerges

after a perusal of the said affidavits is as under:

(i)

Insofar as the NRAI is concerned, as per the affidavit filed by

Mr. Prakul Kumar, Secretary General of NRAI, there are a total

of about 1100 members, whose list has been placed on record.

As per the said affidavit, 80% of the NRAI members impose

service charge on the customers as a mandatory condition. In

the said affidavit, it has been stated that the members of NRAI

are not willing to change the terminology from ‘Service

Charge’ to any of the alternatives proposed by the Court as put

to them in the order dated 12^th April, 2023.