If you are stuck in such a situation, here is what to do.

Mr. Sameer recently had an unpleasant experience at a restaurant named ‘The Royal Platter’ in the popular Gulmohar Market area of Navipura. After his meal, he noticed a significant ‘service charge’ added to his bill. Aware of his rights, he politely requested the staff to remove it. The situation quickly escalated when the owner intervened. The owner became confrontational, asserting that his advocate had confirmed the legality of the charge as long as it was mentioned on the premises. He condescendingly remarked that customers who don’t own restaurants wouldn’t understand the business. Mr. Sameer noted that a small sign on the main door did mention the service charge, but he felt harassed and pressured by the owner’s aggressive behaviour over his refusal to pay a charge that is meant to be voluntary.

Advice in such cases

• Stay Calm and Composed: Do not get into a shouting match or an aggressive argument. Keep your tone firm but polite. Escalating the situation can work against you.
• State Your Position Clearly: Inform the manager or owner that as per the guidelines from the Central Consumer Protection Authority (CCPA), service charges are voluntary and cannot be mandatorily imposed on a consumer.
• Document Everything: Use your phone to take pictures of the menu and any signs that mention the service charge. If the situation becomes hostile, discreetly record the audio or video of the conversation as evidence of their behaviour.
• Offer to Pay the Correct Amount: Clearly state that you are willing to pay the entire bill for the food and beverages you consumed, along with all applicable government taxes like GST, but you are opting out of the voluntary service charge.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Lodge a Complaint: If they refuse to remove the charge or create a scene, you can pay the bill to de-escalate and leave, but make sure to file a complaint later on the National Consumer Helpline (NCH) or the e-daakhil portal.

Applicable Sections of Law

The primary law governing such disputes is the Consumer Protection Act, 2019. The Central Consumer Protection Authority (CCPA), constituted under this Act, has issued specific guidelines prohibiting hotels and restaurants from automatically adding a service charge to the bill. Key legal points include:

• Unfair Trade Practice: Forcing a consumer to pay a service charge is considered an ‘unfair trade practice’ under Section 2(47) of the Consumer Protection Act, 2019.
• CCPA Guidelines (July 2022): These guidelines explicitly state that no hotel or restaurant shall add a service charge automatically or by default in the bill. They also cannot collect service charges by any other name.
• Violation of Consumer Rights: Imposing such a charge infringes upon the consumer’s ‘right to be informed’ and ‘right to choose’.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If the restaurant staff’s behaviour escalates to threats or preventing you from leaving, provisions of the BNS could apply. For instance, wrongful restraint (Section 361 BNS) or criminal intimidation (Section 351 BNS) could be invoked in severe cases, though this is rare for service charge disputes.

If you are the complainant

If you are the customer who has been wronged, here are the steps you should take:

• Gather All Your Evidence: Collect the bill, proof of payment (if you were forced to pay the charge), photos of the menu, and any recordings of the incident.
• File a Complaint with the National Consumer Helpline (NCH): You can call the helpline number 1915 or use the NCH app to register your grievance. This is often the quickest first step.
• File a Formal Complaint with the Consumer Commission: For a more formal legal recourse, you can file a complaint through the e-daakhil portal online. This will be heard by the District Consumer Disputes Redressal Commission. You can claim a refund of the service charge and compensation for the mental harassment caused.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

As a customer who has been subjected to harassment and rude behaviour, you are the victim in this scenario. Your priority is your safety and asserting your rights effectively.

• Do Not Escalate: Your safety is paramount. If the staff becomes overly aggressive or threatening, it is better to pay the disputed amount and pursue legal action later rather than risking physical harm.
• Document the Harassment: Make a detailed note of the incident as soon as you leave the restaurant. Write down the names of the staff involved (if you know them), the exact words used, and the sequence of events.
• Identify Witnesses: If other customers witnessed the harassment, and you feel comfortable doing so, you could request their contact information as potential witnesses for your complaint.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Typically, the police view disputes over service charges as a civil matter, not a criminal one. They are likely to advise you to approach the Consumer Commission. They will generally not file an FIR for a disagreement over a bill. However, the police must intervene if the situation escalates into a cognizable criminal offense. You should call the police if:

• You are being wrongfully restrained or confined (i.e., locked in or physically prevented from leaving).
• You are being threatened with harm (criminal intimidation).
• There is any form of assault or physical violence.

In such cases, the police are obligated to ensure your safety and take appropriate action against the perpetrators under the relevant sections of the Bharatiya Nyaya Sanhita (BNS).

FAQs people normally have

Is it legal for a restaurant to force me to pay a service charge?

No. The Central Consumer Protection Authority (CCPA) has issued clear guidelines stating that service charges are purely voluntary. A customer can choose whether or not to pay it.

What if the menu or a sign says “service charge is mandatory”?

Such a statement does not make the charge legally enforceable. A restaurant cannot impose its own mandatory rules that contradict national consumer protection guidelines. Placing a notice does not constitute a binding contract for a charge that has been deemed optional by law.

What is the difference between Service Charge and GST?

GST (Goods and Services Tax) is a mandatory tax levied by the government that businesses collect on behalf of the government. A service charge, on the other hand, is an additional amount collected by the restaurant for its own staff and profits. While GST is mandatory, a service charge is not.

Can a restaurant deny me entry if I state upfront that I won’t pay the service charge?

A restaurant retains the right to refuse admission or service before a contract (i.e., placing an order) is made. However, once you have been served, they cannot add a non-governmental, mandatory charge to your bill and force you to pay it.

What evidence is required?

To build a strong case for a consumer complaint, you should gather the following evidence:

• The original bill which clearly shows the service charge listed as a separate item.
• Proof of payment, such as a credit card slip, bank statement, or UPI transaction screenshot, especially if you were forced to pay the service charge.
• Photographs of the menu, rate card, or any signs on the premises that mention the service charge.
• Any audio or video recordings of the confrontation with the staff or owner.
• Contact details of any other patrons who witnessed the incident and are willing to support your claim.

How long will the investigation take?

Since this is a consumer complaint, it does not follow a typical police investigation timeline. The process in a Consumer Commission is designed to be relatively swift. Under the Consumer Protection Act, 2019, there are efforts to resolve cases within 3 to 5 months. However, the actual duration can vary based on the caseload of the specific District Commission, the cooperation of the opposite party (the restaurant), and the complexity of the evidence. After you file the complaint, the commission will issue a notice to the restaurant, which then has to file a reply. The process may involve a few hearings before a final order is passed.

Advocate Sudhir Rao, Supreme Court of India