Confirmed booking denied? Haryana consumer commission says refund doesn't erase liability

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The dispute arose from an earlier consumer complaint that had been settled on March 15, 2021. Under the settlement, The Allure Grand Resort, Manali, had agreed to provide the complainant a four-night stay at a 40% discount as a full and final settlement. Acting on this assurance, the complainant booked a stay from October 5 to October 9, 2021, paid an advance of ₹ 10,000 against the total tariff of ₹ 30,400, and travelled from Gurgaon to Manali with his family.

However, when the family arrived at the resort, they were denied accommodation. The resort refunded the ₹ 10,000 advance but allegedly failed to assist the family in finding an alternative place to stay. The complainant subsequently approached the consumer commission, alleging a deficiency in service.

Rejecting the resort’s defence that refunding the advance had resolved the issue, the commission observed, “It is also an admitted fact that the complainant travelled a long distance from Gurgaon to Manali and after having been returned the amount of ₹ 10,000… was left high and dry.” It added that the resort ignored repeated requests for assistance, causing “considerable mental agony and harassment” to the complainant.

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The commission further noted that the complainant was forced into unnecessary litigation because the resort failed to honour the earlier settlement. It concluded that simply refunding the advance amount cannot erase a deficiency in service, reinforcing that businesses remain accountable for the hardship caused by failing to fulfil confirmed bookings. The ruling serves as a reminder that consumers are entitled to compensation when deficient services result in financial loss, inconvenience, and mental distress.