Delhi High Court Adjourns Appeal Against Order Precluding Restaurants From Levying Mandatory Service Charge, Says 'Board Very Heavy'

The Delhi High Court ruled restaurants cannot force service charges by making them "mandatory" through menu disclaimers. Justice Yashwant Varma held that compulsory levies violate consumer rights regardless of prior intimation. The case involved a ₹1,850 charge automatically added to bills despite customer objections. The judgment reinforces CCPA guidelines against disguised compulsory charges while preserving voluntary tipping. Restaurants must now obtain explicit consent for service charges rather than presume from menu footnotes. The court directed easier opt-out mechanisms and clearer disclosure of charge purposes. This protects consumer choice while allowing genuine service quality rewards. Industry associations plan to appeal, arguing the ruling ignores operational realities of fair wage distribution in hospitality.