Manali Hotel Refuses Stay To Family With Confirmed Booking, Court Orders Rs 31,000 Compensation

Travellers often assume that a confirmed hotel reservation guarantees a hassle-free check-in. However, a recent order by the Gurgaon District Consumer Disputes Redressal Commission serves as a reminder that hotels can be held accountable if they fail to honour confirmed bookings. In a case involving a Manali resort, the commission ruled in favour of a Gurgaon resident and directed the property to compensate him after he and his family were denied accommodation despite having a valid reservation. The details of the case were reported by Law Trend.

What Exactly Happened?

The dispute stemmed from an earlier legal settlement between the traveller and The Allure Grand Resort in Manali. As part of a compromise reached on March 15, 2021, the resort had agreed to offer the complainant a four-night stay at a 40 per cent discount in full and final settlement of the previous matter.

Relying on that agreement, the Gurgaon resident booked accommodation for his family of four, comprising two adults and two children, for the period between October 5 and October 9, 2021. In accordance with the resort's booking policy, he paid an advance of Rs 10,000 towards the total room tariff of Rs 30,400.

Family Denied Accommodation On Arrival

After travelling from Gurgaon to Manali, when the family arrived at the resort on October 5, 2021, they were allegedly denied accommodation by the hotel. The resort refunded the Rs 10,000 advance payment but did not provide them with a room.
As reported by Law Trend, the complainant also requested the hotel staff to help arrange alternative accommodation for his family. However, according to the case, no assistance was provided.

The traveller subsequently sent a legal notice to the resort before approaching the district consumer commission, alleging deficiency in service.

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What The Resort Argued

The resort maintained that refunding the advance payment was sufficient to resolve the matter. It also argued that once the amount had been returned, its staff had no obligation to assist the guest in finding another place to stay.

What The Commission Observed

The commission rejected the resort's defence. It observed that simply returning the booking amount could not compensate for the inconvenience and distress caused to a family that had travelled a long distance with a confirmed reservation.

It also noted that the refund did not absolve the resort of its responsibility to honour the earlier settlement agreement.
The commission concluded that the resort's failure to provide the booked accommodation amounted to a deficiency in service, causing unnecessary hardship to the complainant and compelling him to pursue legal proceedings, Law Trend reported.

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Commission Awards Compensation

The Gurgaon District Consumer Disputes Redressal Commission directed The Allure Grand Resort in Manali to pay the complainant a total of Rs 31,000. The amount includes Rs 20,000 as compensation for mental agony and harassment, along with Rs 11,000 towards litigation expenses.

The order, issued on July 13, also granted the Himachal Pradesh-based resort 45 days to comply. If the payment is delayed beyond this period, it will attract interest at the rate of 12 per cent per annum until the amount is paid.

The order highlights the responsibilities of hospitality providers towards guests and reinforces the consumer's right to seek compensation when promised services are not delivered.