Hotel told to pay compensation

Madurai District Consumer Disputes Redressal Commission ordered Le Grace Inn, Madurai, to pay compensation to a complainant for failure to disclose vital information regarding the cancellation policy. The final payment and settlement in compliance with the Commission’s order was made to the complainant on August 13.

The complainant S. Thirugnanasambandam preferred a complaint against Le Grace Inn in Thiruppalai. He approached the hotel on August 29, 2024, and booked rooms for his relatives for three days. The room charges were ₹2,000 per day. He was asked to pay ₹6,000. The complainant paid ₹4,000 as advance. However, due to health reasons, his relatives cancelled their programme.

The complainant informed the hotel. A request for refund was made. However, the hotel staff told him that as per their policy, the advance amount could not be returned. The complainant said that the hotel had not divulged their condition to him and no such conditions were stated in the receipt issued by them.

Following a police complaint, the hotel agreed to refund 50% and not the entire amount. Subsequently, the complaint was filed before the Consumer Disputes Redressal Commission. The complainant said the cancellation request was made well in advance of the 24 hour notice period.

Madurai District Consumer Disputes Redressal Commission comprising president M. Piravi Perumal and member P. Shanmugapriya perused the materials in the case and said it was evident that the hotel failed to disclose their cancellation policy or any pertinent terms and conditions in the receipt.

The commission said the hotel as a service provider has an obligation to act in good faith and uphold ethical standards. By failing to provide essential information and retaining the advance amount without justification, the hotel had not only violated the trust inherent in the customer-service provider relationship but has also acted contrary to the principles of good faith and fair dealing.

The Consumer Disputes Redressal Commission directed the hotel to refund ₹4,000, pay ₹10,000 as compensation and ₹5,000 to the complainant as cost of the proceedings. The final settlement was made on August 13 to the complainant with the interest amount.