CCPA asked to approach single-judge for vacation of stay on guidelines restraining hotels and restaurants from levying service charge

CCPA asked to approach single-judge for vacation of stay on guidelines restraining hotels and restaurants from levying service charge

Appearing for the the CCPA, Additional Solicitor General (ASG) Chetan Sharma asked the Court to stay the interim order passed by the single-judge and then hear the matter further

The Central Consumer Protection Authority (CCPA) has been asked by a Division Bench of Delhi High Court to approach a single-judge with an application for vacation of stay on its guidelines restraining hotels and restaurants from levying service charge. The Bench has directed the Registry to list the petition before a single-judge immediately after 10 days.

Addressing an appeal by the CCPA challenging a single-judge's order with stayed its guidelines stipulating that hotels and restaurants should not add service charge automatically or by default to food bills.

On July 20, a single-judge Bench of Justice Yashwant Varma had stayed the CCPA guidelines on the condition that restaurants prominently display the fact that they levy service charge.

The Court had also recorded the undertaking by the restaurants that there will be no service charge on takeaway food orders.