Hyderabad: Spice Jet asked to pay 6% interest for delayed refunding to MD Prakash Garg

Hyderabad: District Consumer Disputes Redressal Commission, Ranga Reddy has directed SpiceJet Limited to pay six percent interest for late refunding of ticket amount of Rs 1,67,512.

The panel also asked the airline company to pay Rs 8,000 as compensation to a Hyderabad resident for a deficiency of service. The interest has to be paid for the period from August 15, 2020, to November 22, 2021

Case details

Prakash Chandra Garg, managing director of Garg Power Products Private Limited had booked to and fro flight tickets from the Spice Jet on March 1, 2020, by paying an amount of Rs 1,67,512. The date of the journey was May 25 and the return journey was on May 31. However, due to the COVID-19 situation, Garg and his family members could not travel and Spice Jet Limited canceled the flights. Union Government had also set some travel guidelines

Garg requested SpiceJet to refund air ticket fare

Further, Garg requested Spice Jet Limited to refund the flight tickets amount of Rs.1,67,512. The Spice Jet assured that they would refund the amount by way of account transfer. Garg, however, was surprised to see the email from SpiceJet stating that “further the booking amount has been kept under credit shell which can be used to make fresh bookings for the travel till March 31, 2021, for the same passengers on their website”.

Garg stated that he was not interested in traveling till March 31 along with his family members and requested SpiceJet Limited to refund the amount. They verbally assured to transfer the money to the bank account of Garg. However, they did not transfer the amount for the reasons best known to them and have dragged the matter on one pretext or the other.

Garg knocked on the doors of the Consumer Forum for Justice

Vexed with the attitude of SpiceJet Limited, Garg served a legal notice on November 7, 2020, which was duly received by them. The airline company however chose not to give any reply nor cleared the outstanding due of Rs.1,67,512.

Therefore, Garg knocked on the doors of the Commission for redressal seeking justice. Despite giving sufficient time, Garg did not choose to file the correct address of SpiceJet Limited. Despite service of notice, SpiceJet Limited did not choose to attend before the Commission, hence Garg was set as ex parte.

SpiceJet Limited dragged the matter with an email

The Commission noted that Garg could not travel through the Airlines of SpiceJet on May 25 and May 31 due to COVID-19 as SpiceJet Limited canceled the flight and the Union Government has also imposed restrictions on travel. He demanded SpiceJet to refund Rs.1,67,512, However, they dragged the matter. In an email on August 13, 2020, they said the complainant could utilize the money for fresh booking to travel till March 31, 2021, and the said amount was kept under a credit shell.

The reply on August 14, 2020, from Garg to SpiceJet Limited disclosed that he requested them to refund the amount immediately as he has no further travel plans for a year. SpiceJet Limited did not choose to refund the amount and Garg served a legal notice on November 17, 2020.

After hearing the arguments from both parties, the Commission said not refunding the amount despite cancellation in 2020 amounts to a deficiency in service, and as such they compelled Garg to approach the Commission with the instant complaint It is to be observed that SpiceJet Limited was set exparte and despite granting sufficient time, Garg failed to furnish the correct address of SpiceJet Limited.

SpiceJet refunded Rs 1.67 lakh to Garg

However, as per the contention of Garg, SpiceJet Limited refunded the amount on November 22, 2021, after the filing of his complaint; Opposite Parties are liable to pay interest on the said amount from August 15, 2020, till November 22, 2021. Garg herein sought compensation of Rs 15 lakh from SpiceJet Limited but the Commission did not see any justifiable ground for such a hefty amount of compensation. Hence, the Commission felt awarding an amount of Rs 8,000 towards compensation and litigation costs to Garg.