Restaurant Ordered to Pay ₹5,000 for Imposing ₹129 Service Charge in Punjab
Restaurant in Punjab penalised for adding a ₹129 service charge without consent and refusing its removal, ordered to pay ₹5,000 and refund the charge. Read more.
Ekta Mathew 
BATHINDA, July 02, 2026 — A Bathinda restaurant has been ordered to refund a ₹129 service charge and pay ₹5,000 in compensation after a consumer body found it added the fee to a customer’s bill without prior consent or disclosure.
The District Consumer Disputes Redressal Commission in Chandigarh ruled that the automatic addition of a service charge constituted a deficiency in service and an unfair trade practice, violating consumer protection norms. The restaurant had also refused to remove the fee when the customer objected.
Why the Ruling Matters
The decision underscores that a service charge in eateries must be optional and clearly communicated before billing. The Central Consumer Protection Authority’s guidelines state restaurants cannot impose or collect service charges automatically or without explicit customer agreement.
The complainant, Rahul Goyal, a lawyer practising at the Punjab and Haryana High Court, visited the rooftop eatery on October 5, 2025. After dining, the restaurant issued two bills totalling ₹129 in service charges without telling him in advance or seeking his approval. When he objected, the restaurant refused to remove the add-on, prompting the complaint in January 2026.
Commission’s Findings and Order
A bench led by President Amrinder Singh Sidhu and Member B.M. Sharma noted the restaurant did not appear before the commission despite repeated notices. With no defence, the bench accepted the complainant’s evidence.
The commission held that automatically levying a service charge without consent is neither permissible nor lawful. It directed the restaurant to refund the ₹129 service charge and pay ₹5,000 as compensation for harassment, mental agony, and litigation costs. The restaurant must comply within 45 days of receiving the order.
Consumer Rights Context
Service charges at restaurants have been a point of contention across India. Guidelines issued by the consumer authority in 2022 clarify that paying service charges is voluntary and must be transparently offered, not forced on patrons. This ruling adds to growing enforcement actions against unfair billing practices in the hospitality sector.
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