Case at a Glance
A complainant booked three tickets through a travel agent for her daughter and two others, from Amritsar to Delhi and on to Toronto, in April 2024. The Toronto connection was cancelled or rescheduled at short notice, and she bought replacement tickets on another airline for Rs 4,37,400. When only part of the fare came back, the District Commission held Air India and the travel agent deficient and ordered a refund of Rs 1,08,997 with 9% interest. The travel agent appealed, blaming West Asia tensions. The State Commission held that withholding part of the refund was deficiency in service and an unfair trade practice. It said the geopolitical situation did not absolve the opposite parties, because passengers were stranded without prior intimation. The appeal was dismissed.
The complainant booked three tickets through the appellant travel agent, Thakural Travels, Chandigarh, for travel from Amritsar to New Delhi and then to Toronto around 15–16 April 2024. The Toronto connection was cancelled or rescheduled at short notice, and she bought replacement tickets on another airline for Rs 4,37,400. Refunds came back only in part. She alleged that about Rs 1,24,327 had been withheld. The travel agent said it had issued three cheques of Rs 1,27,000 each after deducting service charges. It blamed tensions in West Asia, which it said had closed the onward air route, and said it had offered rescheduling, which the complainant declined.
The District Commission-I, U.T. Chandigarh, partly allowed the complaint against Air India and the travel agent. It directed a refund of Rs 1,08,997 with 9% simple interest from the date of purchase, Rs 15,000 for mental agony and harassment and Rs 10,000 as litigation costs, with 12% penal interest if the order was not complied with within 45 days. The travel agent appealed, arguing that the District Commission had misread the evidence and had not actually found any deficiency on its part.
The Key Question Before the Court
Was the travel agent liable for withholding part of the refund after the flight was cancelled, and could it rely on tensions in West Asia to escape liability?
Why the State Commission upheld the refund order
The State Commission held that withholding part of the refund after the cancellation was deficiency in service and an unfair trade practice. It noted that the non-refundable service charges and the Amritsar–Delhi leg that had actually been used were deducted, so the refund was a net figure.
On the travel agent’s defence, the Commission held that the geopolitical situation did not absolve the opposite parties, because passengers were stranded without prior intimation. It rejected the claim that no deficiency had been found against the travel agent, noting that the District Commission had held both Air India and the travel agent deficient. Finding “no illegality, infirmity or perversity in the impugned order”, it dismissed the appeal. The order cites no case law.
What the Court Actually Held
- Withholding part of the refund after a flight cancellation is deficiency in service and an unfair trade practice.
- Tensions in West Asia did not absolve the opposite parties, because passengers were stranded without prior intimation.
- The District Commission had held both Air India and the travel agent deficient. The agent’s contrary plea was rejected.
- The appeal was dismissed with no order as to costs, leaving the refund of Rs 1,08,997 with 9% interest, Rs 15,000 compensation and Rs 10,000 costs in place.
Why This Judgment Matters
- Flight cancellations on long-haul routes have become common because of conflicts in West Asia. The ruling says that this does not justify holding back refunds.
- Travel agents who collect the fare cannot avoid liability by pointing to the airline or to world events.
- It confirms that consumer forums will allow genuine deductions, such as used legs and service fees, but no more.
What Should Advocates Take Away From the Judgment?
For Travellers
- Keep records of what you paid, what was refunded and what the replacement tickets cost.
- A travel agent who booked and collected the fare can be made jointly liable with the airline.
- Expect deductions for flight segments you actually used and for non-refundable service charges.
For Counsel
- Join both the airline and the travel agent. The District Commission held both deficient here.
- Show the absence of prior intimation to defeat force majeure or geopolitical defences.
- Work out the net refund carefully, allowing for used legs and non-refundable charges, to keep the award secure on appeal.
Key Takeaways
- Holding back part of a refund after a cancellation is deficiency in service and an unfair trade practice.
- Geopolitical disruption does not excuse stranding passengers without prior notice.
- Travel agents can be held liable together with the airline.
- A refund of Rs 1,08,997 with 9% interest, plus Rs 25,000 in compensation and costs, was upheld.
Frequently Asked Questions
Can a travel agent keep part of my refund when a flight is cancelled?
Here the State Commission held that withholding part of the refund was deficiency in service and an unfair trade practice. Only non-refundable service charges and the cost of segments already used were deducted.
Are West Asia tensions a valid excuse for not refunding?
The Commission said no, because the passengers were stranded without prior intimation.
What did the complainant get?
A refund of Rs 1,08,997 with 9% simple interest from the date of purchase, Rs 15,000 for mental agony and Rs 10,000 as litigation costs, with 12% penal interest if not paid within 45 days.
Conclusion
The State Commission upheld a carefully netted refund order and rejected the travel agent’s attempt to shift blame to world events. The key failures were the lack of notice to the passengers and the refund held back afterwards.
Practical takeaway: After a cancellation, demand the full refund in writing from both the airline and the agent. If part is withheld, the District Commission can order it with interest and compensation.
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