Consumer forum directs hotel to refund booking amount

A consumer forum today directed a hotel to refund Rs 25,000 with interest and other charges to a petitioner who had booked the hotel for his son's marriage but later cancelled it due to a relative's death, last year.
The Consumer Forum, Mandi, directed the owner and manager of Raj Mahal Hotel, Mandi, to refund Rs 25,000 to Mohinder Singh Guleria along with interest at nine per cent per annum from the date of filing of complaint till realization and further directed to pay Rs 3,000 on account of compensation for inconvenience and harassment suffered by the complainant and Rs 1,000 as costs of litigation.

According to the petition, Guleria, a resident of Samkhetar Mohalla, Mandi, had booked Raj Mahal Hotel for the reception of marriage of his son on June 11, 2013 with the marriage fixed for November 10, 2013 and paid Rs 25,000 as advance booking amount.
Later in August 2013, due to the death of his cousin, the marriage was postponed, and he requested the hotel to cancel the booking and refund the amount, upon which booking was cancelled and it was assured that the booking amount would be refunded within seven days.
When the hotel did not refund the amount after repeated requests, a legal notice was served in August 2013 but no refund was made.

The hotel admitted receipt of advance Rs 25,000 from the complainant for the booking but denied that he requested for cancellation of booking and refund of the amount.

It was further alleged that the hotel suffered huge loss due to non-intimation of cancellation of booking within a period as they could not rent the premises to any other party.
The Forum held that even if it was assumed that no intimation of cancelation of booking was given, why did the hotel authorities not act on the notice which was sent to it in August which has been duly proved on record.

It then directed hotel owner Raja Ashok Pal Sen and manager Man Singh to refund the booking amount Rs 25000 along with interest, and pay Rs 3,000 as compensation and Rs 1,000 as litigation charges.