$~1(SB) & 2(SB)

* 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 + 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.

Signature Not Verified Digitally Signed W.P.(C) 10683/2022 & 10867/2022 Page 1 of 7 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:

i. At the outset, it is noticed that both these petitions Signature Not Verified Digitally Signed W.P.(C) 10683/2022 & 10867/2022 Page 2 of 7 have been preferred by associations/federations of hotels and restaurants. In order to have clarity as to the members qua whom the present writ petitions have been preferred, taking into consideration, orders passed in WP(C) 3324/1999 titled ‘Kuber Times Emp. Assn. v. State & Ors.’, 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 2023. The Registry to compute the court fee which would be payable, which shall also be informed to the Petitioners. The necessary court fee shall then be deposited by the Petitioners.

ii. Ld. counsels for the associations/federations have submitted that they have lakhs of members. In view of the fact that both these associations/federations have preferred these writ petitions, this Court is of the opinion that the associations/federations ought to consider the following aspects and place their stand before the Court:

a. The percentage of members of the Petitioners who impose service charge as a mandatory condition in their bills.

b. Whether the said members and the associations/federations would have any objection in the term `Service Charge’ being replaced with alternative ter