A travel agency has been directed by the District Consumer Disputes Redressal Commission in Mahabubnagar, Telangana, to refund Rs 30,000 to a couple and pay an additional Rs 30,000 in compensation and litigation costs after failing to arrange a scheduled tour to Bangkok or return their money.
The consumer court ruled that retaining a client’s funds after refusing to provide the agreed service constitutes a deficiency in service. Delivering the order on July 15, a bench comprising Commission President M. Anuradha and members K. Chandra Shekhar Reddy and K. Vijaya Laxmi determined that the agency could not withhold the payment, even while asserting that the travelers had failed to adhere to the package’s terms.
Background of the Dispute
The complaint stemmed from a promotional trip priced at Rs 19,999 per person, which included round-trip flights between Hyderabad and Bangkok, a three-night hotel stay, and associated travel arrangements. The couple intended to join a 12-member group and paid an advance of Rs 30,000 on September 4, 2024.
Representing the tour company, advocate M. Jitender Reddy argued that the package terms required full payment on or before August 31, 2024. The defense maintained that because the payment arrived past the deadline, the couple violated the terms. Consequently, when the agency rescheduled the tour from November 21 to November 27, 2024, due to unavoidable circumstances, it did not extend the revised itinerary to the couple or refund their money.
Commission Findings and Directive
The consumer forum highlighted that despite the strict payment policy, the company had accepted the couple’s funds after the due date. The panel emphasized that if the agency chose not to honor the booking due to late payment, it was obligated to return the money rather than retain it in its account.
After the couple sought legal assistance through advocate K. Nagesh Kumar, the commission concluded that the tour operator deliberately withheld the funds in bad faith. The ruling ordered the travel agency to repay the initial Rs 30,000, along with Rs 25,000 in compensation for deficiency of service and Rs 5,000 to cover legal costs.
