The Delhi High Court bottled water case has put restaurants on the defensive. The court slammed associations for billing customers above MRP on packaged goods and then adding service charges. The bench called the practice “legally unjustifiable” and a possible abuse of consumer rights.
Chief Justice DK Upadhyaya pressed industry lawyers during hearings on service charge appeals. “If MRP is Rs 10, in what capacity are you charging Rs 100 for a bottle of water? And then on top of that, you impose a service charge?” he asked. The court questioned the authority behind such billing.
Senior advocate Sandeep Sethi, representing restaurant groups, argued that service charges are contractual between diners and establishments. The bench disagreed. It pointed out that restaurants were effectively charging for food, ambience, and service but masking it at inflated rates.
The judges demanded why menus don’t show itemized splits such as Rs 20 for water, Rs 80 for ambience, and Rs 10 for service so customers know what they pay for. “Providing ambience is part of your services. You can’t mask it by charging above MRP,” the court said.
The Delhi HC bottled water case stems from a March 2025 order declaring service charges voluntary, not mandatory. The ruling held that adding such fees by default violated consumer rights. Restaurants appealed, but the bench has signaled strong skepticism.
The next hearing is set for September 22. Until then, the Delhi HC bottled water case makes one thing clear: inflated billing in restaurants is under strict judicial scrutiny.
