Before the District Consumer Dispute Redressal Commission [Central District] - VIII,    5th Floor Maharana Pratap ISBT Building, Kashmere Gate, Delhi

                               Complaint Case No. 125 of 2023

Varun Sharma s/o Sh. Ved Prakash Sharma,

r/o C-10, MIG Flats, Prasad Nagar, Phase II,

New Delhi-110005

Also at :Redwood City CA, United States of America        …Complainant                                                 

Versus

Air India Ltd.

Safdarjung Airport, Aurobindo Marg,

New Delhi-11003                                                           ...Opposite Party

                                                                   Date of filing:               31.08.2023

                                                                   Date of Order:              21.10.2024

Coram:                                    

Shri Inder Jeet Singh, President

Ms Rashmi Bansal, Member -Female

FINALORDER

Ms Rashmi Bansal, Member -Female

By the present order, the Commission is disposing of complaint of the complainant against OP, alleging deficiency in services on its part in not refunding the amount of his cancelled tickets in time that has caused him harassment, mental agony besides the inconvenience and financial loss. 

1. It is the case of the complainant that on 28.02.2020, he had booked air flight tickets with OP for himself, his wife and two children for travelling on 27.03.2020 from New Delhi to San Francisco, on payment of Rs. 2,44,970/- and reference code was confirmed by OP’s email dated 28.02.2020. On 20.03.2020, the complainant received an email from OP that the said tickets were cancelled due to COVID-19 pandemic and it was mentioned on the website of the OP that the booking amount of the cancelled flight will be refunded in full or change of flight will be allowed without change fee. As the complainant had to return to San Francisco for his work, he booked another tickets on  29.06.2020 for himself and his family with Air India airline for travel in July 2020, which cost him Rs. 2,80,084/-. Complainant submits that even after four months, OP neither refunded the said amount nor adjusted the same in the new booking. This is further submitted by the complainant that when he contacted OP for refund, he was assured that the amount would be adjusted in future, once the airlines started functioning normally.
   1. It is also submitted that in March 2021, the pandemic situation improved and complainant sent an email dated 07.03.2021, requesting OP to adjust the cost of ticket of the cancelled airline against new air tickets for his another upcoming trip to India in the year 2022, which email was not responded by OP. Therefore, another reminder email was sent by the OP on 13.06.2021, but that was also not responded by OP. Complainant further submits that on 18.06.2022 (inadvertently typed as 18.06.2021 in the complaint), 20.06.2022, 21.06.2022 and 27.06.2022, he had written to OP requesting it to refund the cost of the ticket. The OP had acknowledged email dated 20.06.2022, 21.06.2022 and 27.06.2022, however, it did not refund the claimed amount of the ticket. It is further submitted that in July 2022, the complainant again visited India along-with his family and was made to bear the complete air ticket expenses without any adjustments, despite assurances given by the OP.
   2. Complainant submits that before filing the present complaint, he again wrote to OP in February 2023, in response to which OP acknowledged its liability and asked for bank details of the complainant for processing the refund,  which were supplied by the complainant, although the same were provided to OP earlier also. An acknowledgement email dated 23.02.2023 was received by the complainant from OP on the same day itself, stating that the refund would be initiated within 10 to 14 days, no refund was made by OP and left with no option, complainant has filed the present complaint before this Commission. It is submitted that he was made to run from pillar to post but OP failed to provide refund for cancellation of flight as per passenger charter 2019 issued by the Ministry of Civil Aviation Government of India. Complainant submits that OP failed to provide efficient services as were promised by it and is thus guilty of deficiency of service. Complainant submits that failure on the part of OP to refund the amount to the complainant, despite its assurance time and again, acknowledgment of its liability on 23.02.2023 and promise to refund amount in 10 to 14 days has caused him severe mental agony, harassment, and undue hardship, for which OP is liable to compensate him to the tune of Rs.1 lakh besides refund of Rs. 2,44,970/- along with interest @ 18% p.a. from the date of filing of the complaint till its realisation  and  litigation cost of Rs. 50,000/-.

Despite notice, OP failed to file its written statement and the opportunity to file the same was closed on 14.01.2023.

2. Despite notice, OP failed to file its written statement and the opportunity to file the same was closed on 14.01.2023.
3. Complainant has filed his evidence by way of affidavit and endorsed his documents as per complaint. It is clarified in order dated 18.01.2024 that complainant has filed seven annexures with his complaint, however, as per affidavit of evidence, only six annexures were endorsed and annexure no. 7 has no mention in the affidavit, which is an email dated 23.02.2023 of the OP where OP has acknowledged the refund and promised to pay in the next 10 to 14 days.

In support of his claim, complainant has filed:

1. Email dated 28.02.2020, confirming his ticket bookings;
2. Email dated 20.03.2020 from OP regarding cancellation of ticket;
3. Email dated 19.04.2020, from OP;
4. Copy of the E ticket itinerary/receipt, dated 29.06.2020;
5. Copy of email dated 07.03.2021 and 13.06.2021 of complainant to OP;
6. The copy of email dated 18.06.2022, 20.06.2022, 21.07.2022 and 27.06.2022 from the complainant to OP and acknowledgements from OP of emails dated 20.06.2022, 21.07.2022 and 27.06.2022;

4. The complainant has filed his written arguments and also intimated that during the pendency of the case OP refunded an amount of Rs. 27,033/- on 31.05.2023 and Rs. 53,041/-, Rs. 52,041/- and Rs. 60,575/- on 08.03.2024 to the complainant. It is submitted further that though the principal amount is paid by the opposite party, however, the said amount was with-held by the OP and is paid after considerable delay that has caused immense harassment to the complainant and he had to file the present complaint and bore legal cost for the same, therefore, he asked for interest @ 18% p.a. from 20.03.2020 on that amount till its payment made to the complainant, compensation of Rs. 1,00,000/- and litigation charges of Rs. 50,000/-. 
5. The Commission  heard the arguments of the complainant and have gone through the record available on file.  The non-appearance of the OP, despite notice,  shows that OP has nothing to say in its defence or against the allegations made by the complainant. Therefore, the case of the complainant remained un-rebutted and uncontroverted but still onus was on complainant to establish the complaint.
   1. It is not disputed that the complainant booked a confirmed flight ticket on 28.02.2020 of OP Airways for a total sum of Rs. 2,44,970/- and journey was scheduled for 27.03.2020. It is also undisputed fact that the tickets of the complainant were cancelled by OP due to outbreak of the Corona – pandemic. This is also not disputed that the complainant had sought the refund of the said air tickets, not out of his choice, but out of compelling circumstances, arising out of spread of coronavirus, COVID-19, which led the World Health Organisation to declare outbreak of Covid as a global pandemic on 11.03.2020 and imposition of lockdown by Government of India on 25.03.2020, wherein operation of airlines as well as the movement of public and vehicle traffic was banned.
   2. The OP vide its email dated 20.03.2020, cancelled the said booking and vide email dated 19.04.2020 has intimated the complainant about the suspension of all national and international flights in the wake of Covid -19 crisis and also mentioned that in case refund is applied then the process for the same may take longer time than usual till normalcy is restored.  In the said email, the OP also mentioned (for travel between 23.03.2020 – 30.04.2020) that the air ticket is protected at full value with waiver of no-show charges and also, in case the date of travel, (up to 30 September 2020), is decided then the same shall be rescheduled without paying any date change or sector change fee.
   3. The complainant contented that his money of the cancelled ticket was not adjusted towards his upcoming travel to India in July 2020 and then again in July 2022, for which he has booked a flight on 29.06.2020, within the time limit provided by the OP (up to 30.09.2020).  It is observed that in all his emails the complainant has asked OP for refund of his cancelled ticket amount and not for adjustment of the said amount to new tickets. Email dated 19.04.2020 clearly indicated that for re-booking/rescheduling the ticket and for adjustment of the amount, the complainant had to inform OP. Moreover, there is no documents to show whether any attempt made by the complainant to contact OP during his visits to India in July 2020 and then in July 2022 for resolving his issues of the refund of the ticket amount. The, complainant failed to produce on record any documents to show that request / demand was made by him to OP for adjusting the cancelled ticket amount with his new upcoming tickets.
   4. Further development of events shows that during the course of pendency of the present complaint, OP has refunded Rs. 27,033/- on 31.05.2023 and Rs. 1,65,657/- (refund value of tickets of Rs. 53,041/-, Rs. 52,041/- and Rs. 60,575/-) on 08.03.2024 towards cancelled tickets to the bank account of the complainant and his wife respectively. Complainant contends that the same was accepted by him under protest and without prejudice to rights, but, complainant has not filed any document to show any such protest was made to OP vis a vis the amount was transferred into the account of complainant directly by OP, there was not prior consent from the complainant by OP.
   5. Further, though initially the complainant has prayed for Rs. 2,44,970/- but after receiving the said amount prayed in his written arguments only for interest thereupon for delayed period @18% p.a., besides compensation and litigation charges.  Therefore, a  question is also there for determination is whether there is delay on the part of the OP in refunding the said amount? And whether by such delay OP is liable for deficient service on its part?
   6. It is noticed from the documents on record that complainant has written to OP for the first time almost after a gap of one year on 07.03.2021 followed by reminder dated 13.06.2021 (which were not replied/ acknowledged by OP), after tickets were cancellation of the tickets on 20.03.2020. The next email was also sent by the complainant again after almost one year i.e. on 18.06.2022 followed by emails on 20.06.22, 21.06.22 and then 27.06.2022, out of which, emails dated 20.06.22, 21.06.22 and 27.06.2022 were acknowledged by OP and vide email dated 23.02.2023, the OP assured for refund in next 14-15 days but actual payment was made by OP on 31.05.2023 and 08.03.2024.
   7. Hon'ble Supreme Court in case titled Pravasi Legal Cell & Ors. Vs Union of India & Ors, in WP(C) - 10966/2020, WP (C)–570/2020, WP (C)- 595/2020 and WP (C) 952/2020, vide its judgment dated 01.10.2020 has decided the issue relating to refund on cancellation of air tickets during COVID-19 lockdown. Based on these directions,  Director General Civil Aviation Department has issued a circular number 4/1/2020IR dated 07.10.2020 and divided such passengers in three categories. The complainant case falls in category ii, ‘passengers who booked tickets any time prior of lockdown but journey up-to 24.05.2020 and cancelled due to Covid -19’.   Para 4(a) of the said notification has provided that in all such cases covered under category ii, the airline shall make all endeavours to refund the collected amount to the passenger within 15 days from today. It was also ordered by the said circular that if the carriers are in financial distress, they can provide a credit to the flyer that can be redeemed until 31.03.2020.
   8. As per the judgement rendered by Hon'ble Supreme Court and circular dated 07.10.2020, the OP was bound to act in the manner as per guidelines laid down. Complainant’s request for refund was only accepted by the OP on 23.02.2023 after considerable delay and payment of Rs. 27,033/- was made on 31.05.2023 and of Rs. 1,65,657/- (of rest of the three tickets)on 08.03.2024. Therefore, there is delay on the part of the OP in refunding the said amount. This  entitles the complainant for a refund, but OP's delay in processing the refund, despite DGCA guidelines and a Supreme Court ruling and its failure to do the needful within stipulated time frame of 15 days from the date of the notification (07.10.2020),constitutes a deficiency of service on the part of OP and OP is liable to compensate the complainant for the loss suffered by him. 
   9. Complainant, on receipt of the principal amount from OP, claims an interest @ 18 p.a. on Rs. 27,033/- from 20.03.2020 till 31.05.2023 and on Rs. 1,65,657/- from 20.03.2020 till 08.03.2024 i.e. from the date of cancellation of the tickets till its payment made to the complainant along with compensation and litigation charges.The Hon'ble Supreme Court in Experion Developers Pvt. Ltd. Vs. Sushma Ashok Shiroor, in Civil Appeal No.6044 of 2019 decided on 7.4.2022, as regards the rate of interest applicable and the scope for payment of compensation has held that: "We are of the opinion that for the interest payable on the amount deposited to be restitutionary and also compensatory, interest has to be paid from the date of the deposit of the amounts.  The Commission in the Order impugned has granted interest from the date of last deposit.  We find that this does not amount to restitution. Following the decision in  DLF Homes Panchkula Pvt. Ltd. Vs. DS Dhanda and in modification of the direction issued by the Commission, we direct that the interest on the refund shall be payable from the dates of deposit. Therefore, the Appeal filed by purchaser deserves to be partly allowed. The interest shall be payable from the dates of such deposits. At the same time, we are of the opinion that the interest of 9% granted by the Commission is fair and just."

Considering, OP’s delayed response and eventual refund, done in 2023 and 2024, far exceeded the 15-day period as per DGCA circular, it is appropriate to award interest on the delayed refund at a rate of 9% p.a. from 21.10.2020 (15 days from the date of DGCA circular dated 07.10.2020) until the date of actual payment made to the complainant.

The first repayment of Rs. 27,033/- was made on 31.05.2023, therefore, OP shall be liable to pay interest @9% p.a. on Rs. 27,033/- from 21.10.2020 till 31.05.2023.  The next repayment of Rs. 1,65,657/- was made on 08.03.2024, therefore OP is liable to pay interest @9% p.a. calculated from 21.10.2020 till 08.03.2024.

Further complainant seeks, a compensation of Rs. 1,00,000/- for his sufferings for harassment and mental agony at the hands of OP, however, considering the corona period as well as the financial setback caused to the various industries and worst economic condition around the globe, vis- a-vis the inconvenience caused to the complainant due to delayed refund by OP, an amount of Rs. 25,000/- towards compensation is deemed appropriate to be paid by OP to the complainant.

The complainant has also claimed an amount of Rs. 50,000/- towards the Litigation charges as he was constrained to file the present complaint for redressal of his grievances, for which an amount of Rs. 15,000/- is being granted towards the litigation charges to the complainant.

6. Therefore, in view of the above, the complaint is allowed in favour of the complainant and against OP, directing OP to pay to the complainant as follows:
   1. To pay interest @9% p.a. on Rs. 27,033/- calculated from 21.10.2020 till 31.05.2023, which comes to Rs. 6358.49/- ;
   2. To pay interest @9% p.a. on Rs. 1,65,657/- calculated from 21.10.2020 till 08.03.2024, which comes to Rs. 50,391.50/- ;
   3. An amount of Rs. 25,000/- towards compensation;
   4. An amount of Rs. 15,000/- towards litigation charges; 

The above stated order be complied with by OP within 30 days from the date of receiving of the order and the OP is at liberty to deposit the above stated amount in this Commission by way of a valid legal instrument in favour of the complainant. 

7. Announced on 21.10.2024, the copy of the order be given to the parties free of cost as per Rules applicable and order be uploaded on web site.