2023:DHC:2606

$~5 & 6

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 12^th April, 2023

+

W.P.(C) 10683/2022 and CM APPL. 31033/2022

NATIONAL RESTAURANT ASSOCIATION OF

INDIA & ORS.

..... Petitioners

Through:

Dr. Lalit Bhasin, Ms. Nina Gupta,

Ms. Ananya Marwah and Mr. Ajay

Pratap

Singh,

Advocates

(M:

9953947026).

versus

UNION OF INDIA & ANR.

..... Respondents

Through:

Sh.

Chetan

Sharma

ASG,

Mr.

Sandeep

Mahapatra

SPC,

Mr.

Kirtiman Singh CGSC with Mr. Amit

Gupta, Mr. Saurabh Tripathi, Mr.

Vikramaditya Singh, Ms. Vidhi Jain

and Mr. Abhinav Bansal, Advocates

for UOI (M: 9810045281).

6

WITH

+

W.P.(C) 10867/2022 and CM APPL. 31645/2022, 38599/2022

FEDERATION OF HOTEL AND RESTAURANT ASSOCIATIONS

OF INDIA & ORS.

..... Petitioners

Through:

Mr. Sameer Parekh, Mr. Sumit Goel.

Ms.

Sonal

Gupta,

Ms.

Swati

Bhardwaj, Mr. Abhishek Thakral,

Advocates. (M: 8077855788)

versus

UNION OF INDIA & ANR.

..... Respondents

Through:

Sh.

Chetan

Sharma

ASG,

Mr.

Sandeep

Mahapatra

SPC,

Mr.

Digitally Signed

By:RAHUL

Signing Date:18.04.2023

19:30:54

Signature Not Verified

2023:DHC:2606

Kirtiman Singh CGSC with Mr. Amit

Gupta, Mr. Saurabh Tripathi, Mr.

Vikramaditya Singh, Ms. Vidhi Jain

and Mr. Abhinav Bansal, Advocates

for UOI (M: 9810045281).

CORAM:

JUSTICE PRATHIBA M. SINGH

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. Both these matters have been taken up for hearing. The Petitioners in

the present petitions are Associations of hotel and restaurant owners. It is

claimed that more than 5 lakh establishments are represented by the

Petitioners.

3. The challenge in these writ petitions is to the guidelines dated 4th

July, 2022 issued by the Central Consumer Protection Authority (hereinafter

‘CCPA’) and the consequential communication issued on 6th July, 2022 to

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

4. By the impugned guidelines, which are purportedly issued under

Section 18(2)(l) of the Consumer Protection Act, 2019 (hereinafter ‘the Act’)

the authority has taken a position that the levying of service charge by

restaurants and hotels has been complained against by several consumers.

Thus, the authority records that while restaurants and hotels can collect a tip

which is voluntarily paid by the consumers, the same ought not to be

incorporated into the bill in a manner so as to make the payment compulsory

by the consumer. The guidelines, therefore, directed restaurants and hotels

as under:

Digitally Signed

By:RAHUL

Signing Date:18.04.2023

19:30:54

Signature Not Verified

2023:DHC:2606

amount”

5. The above guidelines are challenged by the present two Petitioners

who are associations/federations of restaurants and hotels owners, namely,

National Restaurant Association of India and Federation of Hotel and

Restaurant Associations of India. Vide order dated 20th July, 2022, an ad-

interim order was passed staying paragraph 7 of the above extracted

guidelines, subject to the following conditions:

Digitally Signed

By:RAHUL

Signing Date:18.04.2023

19:30:54

Signature Not Verified

2023:DHC:2606

“take away” items.”

6. The above order was challenged by way of Letter Patent Appeals by

the Respondents, in which the Respondents were permitted by the ld.

Division Bench to file an application for the vacation of stay. The order of

the Division Bench in LPA 473/2022 titled ‘Central Consumer Protection

Authority & Anr v. Federation of Hotels and Restaurant Associations of

India & Ors.’ and LPA 479/2022 titled ‘Central Consumer Protection

Authority & Anr. v. National Restaurant Association of India & Ors.’

dated 18^th August 2022 reads as under:

“CM APPL. 35376/2022 in LPA 473/2022 and CM

APPL. 35747/2022 in LPA 479/2022

LPA 473/2022 & CAV 232/2022. CM APPL.

35375/2022. CM APPL. 35377/2022 and LPA

479/2022 & CM APPL. 35746/2022. CM APPL.

35748/2022

10683/2022 titled N