SC issues notice to Centre on plea for refund of ticket for flights cancelled due to COVID

Supreme Court Tuesday asked Centre and DGCA to respond to a plea seeking directions to airlines to refund full amount of tickets for flights cancelled due to restrictions imposed in India to contain Covid-19 pandemic.

A bench heed by Justice Ashok Bhushan issued tices to Ministry of Civil Aviation and Directorate General of Civil Aviation (DGCA) seeking ir replies on plea which has alleged that airlines have failed to refund ticket amount and are “illegally imposing” mechanism of ‘credit shell’ on unwilling passengers.

“Issue tice,” said bench, also comprising Justices S K Kaul and M R Shah. plea, filed by Air Passengers Association of India, claimed that refusal to refund amount is “arbitrary” and is in blatant violation of Civil Aviation Requirements (CAR) as acceptance of ‘credit shell’ is at sole discretion of passengers.

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“It is submitted that airlines are illegally imposing mechanism of ‘credit shell’ on unwilling passengers. concept refers to a form of credit te which can be used to make a new booking with same airline for a period so provided by airline, usually of one year, as is being offered by most of airlines,” said plea, filed through vocate Rohit Rathi.

bench said matter would be heard along with a pending petition in apex court which has also raised a similar issue. apex court said petitioner’s counsel shall serve a copy of plea to Solicitor General Tushar Mehta.

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plea filed by association has also sought to declare as “arbitrary” action on part of airlines in t refunding full ticket amount. It said that on April 16, Ministry of Civil Aviation h directed all airlines to refund full amount collected for tickets booked during first lockdown period from March 25 to April 14, and also where refund was sought by passengers against booking being cancelled.

plea said office memorandum furr directed that for ticket booked during first lockdown period for travel during second lockdown period from April 15 to May 3 and passenger seeking a refund on cancellation of ticket, airline shall refund full amount without levy of cancellation charges. It said DGCA h issued a circular on April 19 directing airlines to refrain from booking tickets for journeys to be undertaken with effect from May 4. plea claimed that despite directives of ministry and DGCA, airlines have failed to refund ticket amount.

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“ action on part of airlines insofar y fail to refund money of passengers is in blatant violation of CAR given that acceptance of ‘credit shell’ is at sole discretion of passengers,” it alleged. “It is submitted that money lying in ‘credit shell’ may t be of any avail to passenger who h a specific reason for booking tickets during lockdown,” plea said. It said that in se “testing times”, a passenger might require money lying in ‘credit shell’ for immediate necessity.

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