Case Law Details
National Restaurant Association of India & Ors Vs Union of India & Anr (Delhi High Court)
Introduction: In a landmark judgment by the Delhi High Court, the National Restaurant Association of India (NRAI) and other parties were directed to make key changes in the way ‘Service Charge’ is levied on customers.
Why the Challenge?
The restaurant associations had filed petitions challenging the guidelines issued by the Central Consumer Protection Authority (CCPA) on 4th July 2022. These guidelines, among other things, dictated how restaurants should impose ‘Service Charge.’
The Key Points of Contention: The hearing focused on several critical issues such as the capability of CCPA to issue guidelines to restaurants, the naming of the ‘Service Charge,’ whether it should be compulsory, and the conditions under which it should be levied.
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