Consumer Forum Penalizes SpiceJet and Travel Agent for Inadequate Refunds on Cancelled Flights Amid COVID-19 Lockdown

The District Consumer Disputes Redressal Commission at Chandigarh has imposed a fine of ₹15,000 on SpiceJet and a travel agent for failing to issue full refunds for flights cancelled during the COVID-19 pandemic. The commission observed that despite government directives mandating full refunds for cancelled flights, the airline and travel agent provided only partial refunds to complainants. The ruling directs SpiceJet and the travel agent to refund the entire booking fare with interest and pay additional compensation for mental agony and litigation costs.

Key Points:

1. Complaints and Allegations: The commission received complaints from passengers alleging that SpiceJet had not refunded the full fare for flights cancelled during the early stages of the COVID-19 pandemic, despite government guidelines mandating full refunds.
2. Government Guidelines: The Ministry of Civil Aviation had issued advisories directing airlines to refund full fares without imposing cancellation charges for flights cancelled between March 25, 2020, and April 14, 2020.
3. Legal Proceedings: SpiceJet defended its actions by referring to a Supreme Court judgment directing airlines to create credit shells for full fare collections, valid until March 31, 2021, which was later extended. However, the commission found that the airline failed to justify its partial refund policy.
4. Commission’s Decision: The commission held SpiceJet and the travel agent responsible for illegally withholding refunds against government guidelines. It directed them to refund the entire booking fare with interest and pay additional compensation for mental agony and litigation costs to the complainants.
5. Legal Representation: Advocates Nitish Kumar Vasudeva and Kamal Kant Verma represented the complainants, while Advocate Gaurav Bhardwaj appeared for SpiceJet.

Conclusion:
The ruling by the consumer forum underscores the importance of adhering to government directives during exceptional circumstances like the COVID-19 pandemic. It emphasizes the accountability of airlines and travel agents in ensuring full compliance with refund policies to safeguard consumer rights and prevent financial hardship for passengers affected by flight cancellations.

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