CHANDIGARH: Coming down heavily on Deluxe Dhaba and Akash Restaurant in Elante mall, Elante mall itself, Ayan foods that runs food court in Elante mall, Kandhari beverages and coca cola beverages, State consumer disputes redressal commission directed them to pay up Rs 10 lakh to PGIMER’s poor patient welfare fund and to deposit Rs 10 lakh in consumer legal aid account of State Commission for charging excess money for a water bottle, having dual price for water bottle and for running without license under Food Safety and Standard Act, 2006 (FSSA 2006). The restaurants had charged Rs 10 more than MRP for the water bottle on two different occasions by same complainant- Navneet Jindal.
The restaurants and others were also further directed to pay Rs 30,000 as compensation to the complainant in each complaint and refund the money charged by the complainant in each complaint.
Besides this, Elante Mall was directed to stop the food business with immediate effect as it had not license to run the food business on the premises and eateries too admitted that they had not obtained such a license to run the food business at Elante’s food court. “Thus, the food business is being run in an illegal and unauthorized manner. It amounts to undue enrichment through illegal and unauthorized means. Thus, the circumstances of the case require that the same be stopped with immediate effect,” Commission ordered.
A copy of the order was sent to Deputy commissioner Chandigarh, with a direction to ensure that no food business is being run without a license under the provisions of Food Safety and Standards (Licensing and Registration of Food Businesses), Regulations, 2011. It was stated that “in case it is found that there is violation of the FSSA 2006 and Regulations appropriate action be taken under intimation to this Commission.”
The case
Jindal had first filed two complaints against them in District Forum, one in 2016 and other in 2017, however the same were dismissed. He had then appealed against the order in state Commission which set aside the order of the district forum and penalized the restaurant in the recent order.
In both complaints complainant had stated that he was charged Rs 30 for a water bottle when the MRP (inclusive of all taxes) was RS 20. Jindal stated that the Dhaba along with Elante mall and others are deficient in providing service and also adopted unfair trade practice, by printing dual MRP as well as by charging the price above the basic MRP of the aforesaid products sold in their premises because similar products were available in the open market having less or basic MRP. Also, he stated that the food business run in the Elante mall is neither a restaurant nor a hotel nor the competent authority under Food Safety and Standard Act, 2006 (FSSA 2006) had issued any license to run the food business.
The restaurant and others (except Elante authorities) contended that that the eateries wherein the food business is run, be treated as a restaurant and the respondents are entitled to print dual prices on the bottles of soft drink and water respectively, and also to recover the price as printed on the bottles in question. Reliance was placed upon various judgements. It was pleaded that the amendment to the Legal Metrology (Packaged Commodities) Rules, 2011 made effective from January 1, 2018, gave liberty to restaurants to charge dual prices of the commodities.
However, commission after going through the documents put on record held that both the appeals deserves acceptance based on the fact that the food business going on within the premises of Elante mall can’t be termed as a restaurant or a hotel. Commission held that “Neither any waiter has been provided to the complainant nor were any other services provided to him. Rather, the customers have to self-serve them. In this view of the matter, the eateries run by the respondents cannot be equated with restaurants or hotels.”
It was added that eateries have no license under the provisions of FSSA 2006 and the Food Safety and Standards (Licensing and Registration of Food Businesses), Regulations, 2011 and that “there is no law authorizing the respondents to depict dual pricing and charging above the MRP on the products sold within the premises of Elante mall.”
Commission concluded by saying that, “The respondents by charging excess amount, towards the products, referred to above, against each bottle, from the complainant, have adopted unfair trade practice and are also deficient in providing service.”
It was held that the District Forum failed to appreciate various rules and sections of the FSSA 2006, and also failed to take notice that the respondents were not equipped with licence issued by the competent authorities. “The District Forum also failed to apply its mind that the food court/eateries, where no service is provided, and the customers have to self-serve them cannot be considered as restaurants or hotels. Therefore, in this view of the matter, the order passed by the Forum is liable to be set aside and reversed.”
They were all directed to pay up.
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