Thread by @barandbench

[Refund of Airline Tickets case]

Justice Ashok Bhushan led bench to resume hearing the plea seeking refund of air tickets for travel that could not happen during lockdown. @DGCAIndia has stated that passengers are entitled to refund

#SupremeCourt
@pravasilegalcel

However, @DGCAIndia has clarified that any refund or credit shells valid for air tickets till March next year is applicable for the passengers & not the travel agents. Further any refund is only for flights originating in India and not for the ones abroad, even if Indian carriers

The intervenors had posed a question that if a person especially elderly does not want to travel even after March 2021, then in that case an option of immediate refund has to be given and no credit shell. Senior Adv Aryama Sundaram too had supported this. Court to hear today

Hearing begins:

SC asks SG Tushar Mehta what clarification is given in the affidavit.

Mehta explains that the query raised earlier was pertaining to travel agents and the credit shell to be given.

Mehta: So far as travel agents are concerned, we cannot regulate them we don't have control over it.

But suggestion is that a passenger can use the credit shell only through the agent.

Justice Reddy: If the voucher (credit shell) is not used till the deadline, will the money go to the account of the agent?

#SupremeCourt @DGCAIndia

Mehta explains: There are travel agents, we don't know them or recognise them since there are no registrations.

If I'm an agent, I buy tickets in blocks and that is the contract between the agent and airline, DGCA has nothing to do with it.

Mehta: Once the ticket is allotted, then the passenger's name is reflected in the passenger manifest. Till such allotment, these remain as "floating tickets".

We cannot control the inter se contractual obligations between agents and passengers.

#SupremeCourt @DGCAIndia

Mehta: We can recognise two agencies because they are recognisable - passengers and airlines.

We have done our best to ensure that the passenger either gets the money back or gets the voucher which is transferable.

Mehta: For airlines, directing them refund would have devastating effect

Justice Shah: The voucher is transferable?

Mehta: Yes it is transferable by the passenger.

Justice Reddy: The transfer of voucher has to be done through the same agent?

Mehta: I cannot say that, we are praying that Your Lordships say that.

#SupremeCourt @DGCAIndia

SC: If the passenger surrenders the voucher before the agent and the same is refunded then?

Mehta: We have no problem with that if the passenger gets their money back by surrendering the voucher which is surrendered before the agent.

#SupremeCourt @DGCAIndia

Senior Counsel Pallav Shishodia for the applicant (travel agents): The passengers have paid the money not to the airline, but to agents.

There are many cases where we have paid in advance to the airline to book tickets.

Shishodia: Insolvency of airline cannot be saved at the expense of our insolvency.

SC: Your interest is protected because if the voucher is not used then the money will be deposited in your account.

Shishodia: But for that we will have to wait till March 2021

Justice Shah: When SG is saying that passengers may surender voucher before agents tochet refund and agents can use that voucher, then what is the problem?

Shishodia highlights that the modalities for that are not in place.

SC: We will consider that.

Senior Counsel Mukul Rohatgi for @IndiGo6E: If my credit shell remains till March 2021, I have no difficulty. We can work with this

Justice Shah: Your only concern is you don't have to part with money.

Senior Advocate Pinaki Misra for @airasia and @airvistara: There is an impression being given that the money retained by the Airlines is parked by me in some Bank, that is not true.

It is said that we would have to pay interest on this.

(Misra explains the expenses incurred)

Misra: The rate of interest for FD is much else and we would be asked to pay 9% which is penal interest.

SC: It is not penal interest.

Misra: It becomes a penalty when the rate is so high.

(SC says it will consider it)

Advocate Harshavardhan Bhende for petitioner: To say that the travel agents are not recognised is a sad thing to say because when the passenger manifest is prepared it is done with communication with the travel agents.

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Advocate Puneet Jain for an intervenor raises the grievance about making bookings on an international carrier which starts from outside India.

Mehta explains that if the booking is made from India then they have jurisdiction over it and it will be taken care of

Sr. Adv Sanjay Hegde explains: Suppose bookings are made on Indian carriers but from a Gulf country, then the CAR says that they exercise some jurisdiction.

SC: Your concern is that if booking is made form Air India office in New York then you are not covered?

Hedge: Yes

Sr. Adv. Arvind Datar for @goairlinesindia highlights the issues affecting Airlines: My working capital has been frozen.

(Datar explains the expenses that Airlines have to incur and juxtaposes the same against cap that is imposed on ticket prices and frozen working capital)

SC: But that is your Airline's problem, how can you hold up passenger's money?

(Datar points out that there are other Airlines too in need of more time to make the refunds)

SC: If you need more time then you need to approach the government

(Datar has been logged out if the VC hearing. Senior Counsel Aryama Sundaram makes submissions for petitioners in the meantime)

Sundaram: Mr. Datar's client may have problems but we have the right to get our money back.

#SupremeCourt

(Datar resumes arguments after being reconnected)

Datar: We are not saying we won't refund but March 31 is an unrealistic deadline. We are only seeking some relaxation.

SC: The scope of the writ petition is not to give direction to the govt to give relaxation

Datar: Credit shell and who will it go to, travel agent or passengers, is all now being judicially decided so that is why we are only requesting Court's indulgence.

31st March is unrealistic. We are requesting to make it 1 year more or at least six months more.

#SupremeCourt

SC: What is GoAir's liability?

Datar: ₹300 crore liability. Already refunded ₹40 Crores. From 100% flights I'm at 60% flights in operation as in September.

(Datar requests for credit shell to be transferable)

SC: That is what SG said.

Datar: it's a wonderful suggestion

Advocate Kunal Cheema for intervenors Akhil Bhartiya Grahak Parishad makes brief submissions.

Shishodia: WRT what Mr.Rohatgi said, @IndiGo6E is doing what we had suggested and Mr. Datar had also suggested source to source refund and that will make things easy.

#SupremeCourt

The three judge bench reserves order.

Arguments concluded

Supreme Court reserves order in plea seeking refund of airfare for tickets booked during COVID-19 lockdown [Read full story] #Airfare #Airlines #COVID19 @IndiGo6E @goairlinesindia @DGCAIndia

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