Booking app to pay Rs 21,000 for not refunding cancelled flight ticket

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The complainant alleged that the ticket amount was never returned despite repeated emails. (Image generated using AI)A district consumer commission in Himachal Pradesh has directed Paytm to refund the amount of a cancelled flight ticket to a consumer, besides paying Rs 15,000 as compensation and litigation costs, for failing to complete the refund despite receiving the money from the airline.President Purender Vaidya and members Manchali and Jagdish Thakur noted that Paytm failed to discharge its duty to refund the fare, which amounted to a deficiency in service.“It was the duty of the opposite party No.2 to see how refund process was to be completed and how this amount was to be repaid or refunded to the complainant. But, the opposite party No.2 failed to discharge the said duty, which amounts to deficiency in service,” the order dated July 18 read.Complaint before commissionAccording to the complainant, he had booked return flight tickets between Chandigarh and Srinagar through Paytm by paying Rs 6,484 for the return journey scheduled for April 7, 2020. However, the nationwide Covid-19 lockdown led to the suspension of flights.He alleged that the ticket amount was never returned despite repeated emails to Go Airlines and the booking platform. Alleging deficiency in service, he approached the consumer commission seeking a refund, compensation and litigation costs.Go Airlines, in its defence, denied the allegations of deficiency and said that it had introduced a “protect your PNR” policy allowing passengers to use the fare amount for future bookings. It further stated that after the validity period expired, it processed the refund and transferred the amount to the complainant’s travel agent.On the other hand, Paytm argued that it had attempted to refund the amount twice by sending refund links to the complainant, but he failed to claim the money before the links expired. It further said that the delay in receiving the refund was attributable to the complainant.Story continues below this adRelief grantedThe commission observed that Paytm could have obtained the complainant’s bank account details and directly credited the amount. The commission also noted that even after the complaint was filed, Paytm chose to contest the case instead of releasing the refund.The commission also took note of Paytm’s stand that they had tried to refund but due to a technical error the refund could not be completed.The commission held that it was Paytm’s responsibility to ensure the refund reached the consumer and that its failure to do so amounted to a deficiency in service.The commission therefore directed Paytm to pay the refund amount and also awarded Rs 10,000 as compensation for harassment and Rs 5,000 towards litigation costs.Story continues below this ad“Since complainant was unnecessarily harassed by the opposite party No.2 and he was forced to file the present complaint, therefore, the opposite party No.2 is further directed to pay compensation of Rs 10,000 and litigation cost to the tune of Rs 5,000 to complainant,” the order read.TakeawayThe ruling underscores that online travel booking platforms cannot evade responsibility for refunds once they have received the money from airlines.Aggrieved consumers may contact the consumer helpline in their respective states (Himachal Pradesh helpline: 1800-180-8087) or call the National Consumer Helpline at 1915 for assistance.Ashish Shaji is a Senior Sub-Editor at The Indian Express, where he specializes in legal journalism. Combining a formal education in law with years of editorial experience, Ashish provides authoritative coverage and nuanced analysis of court developments and landmark judicial decisions for a national audience. Expertise Legal Core Competency: Ashish is a law graduate (BA LLB) from IME Law College, CCSU. This academic foundation allows him to move beyond surface-level reporting, offering readers a deep-dive into the technicalities of statutes, case law, and legal precedents. Specialized Legal Reporting: His work at The Indian Express focuses on translating the often-dense proceedings of India's top courts into clear, actionable news. His expertise includes: Judicial Analysis: Breaking down complex orders from the Supreme Court and various High Courts. Legal Developments: Monitoring legislative changes and their practical implications for the public and the legal fraternity. Industry Experience: With over 5 years in the field, Ashish has contributed to several niche legal and professional platforms, honing his ability to communicate complex information. His previous experience includes: Lawsikho: Gaining insights into legal education and practical law. Verdictum: Focusing on high-quality legal news and court updates. Enterslice: Working at the intersection of legal, financial, and advisory services. ... Read More Tags:consumer court