‘Don’t pay, don’t enter’: Delhi High Court stays guidelines restraining restaurants from charging service charge

The Delhi High Court on Wednesday stayed a set of guidelines issued by the Central Consumer Protection Authority (CCPA) restraining restaurants from charging service charges. The court said that no service charge will be imposed on takeaways.

“Don’t pay. Don’t enter the restaurant. It’s a matter of choice,” said Justice Yashwant Varma. The National Restaurant Association of India had approached the court against the guideline, pointing out that the levying of service charge has been a standing practice in the hospitality industry for more than 80 years.
“There is no law which disallows restaurants to charge service charge. There has neither been a new law or an amendment in the existing laws which make charging of the service charge illegal. In the absence of due authentication and promulgation of the guidelines, the contents thereof cannot be treated as an order of the Government,” the body argued.