Stay order on service charge ban not approval of practice: Delhi HC

The Delhi High Court said on Wednesday its earlier order staying a ban on automatic levy of service charge on food bills cannot be shown by restaurants to the customers in a manner which suggests that the charge has been approved by it.

Justice Prathiba M Singh, who was hearing the pleas by two restaurant bodies challenging the July 4, 2022 prohibition by the CCPA, also observed that the words 'service charge' give an impression of being a government-backed levy and asked the petitioners to state if they have any objections to changing the term to 'staff charges' or 'staff welfare fund' etc to avoid any confusion.

The judge asked the petitioners- National Restaurant Association of India (NRAI) and Federation of Hotels and Restaurant Associations- to also state the percentage of its members who impose service charge as a mandatory condition and directed them to file their affidavits on the queries.

Additional Solicitor General Chetan Sharma said certain restaurants were misinterpreti