PRAVASI LEGAL CELL & ORS. versus UNION OF INDIA & ORS.

Citation: [2020] 12 S.C.R. 102 · Decided: 01-10-2020 · Supreme Court of India · Bench: ASHOK BHUSHAN · Disposal: Disposed off

Judgment (excerpt)

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SUPREME COURT REPORTS
[2020] 12 S.C.R.
PRAVASI LEGAL CELL & ORS.
v.
UNION OF INDIA & ORS.
(Writ Petition (C) No. 1131 of 2020)
OCTOBER 01, 2020
[ASHOK BHUSHAN, R. SUBHASH REDDY,
M. R. SHAH, JJ.]
Civil Aviation – COVID-19 pandemic – Lockdown – Ban on
operation of all domestic and international flights – PILs filed
seeking refund of air fare – Held: For tickets booked (both domestic
and international) during the lockdown period (from 25.03.20 to
24.05.20) for travel during that period and for which the airline
has received payment, if a refund is sought by the passenger against
that booking being cancelled, the airline shall refund the full amount
collected without any cancellation charges – For tickets booked
through a travel agent, full refund to be given by the airlines
immediately – On such refund, the agent shall pass it to the
passengers immediately – For tickets booked at any period of time
but for travel after 24.05.20, refund of fares to the passengers
covered under this category to be governed by provisions of Civil
Aviation Requirements (CAR) – Further directions issued – Aircraft
Act, 1934 – Aircraft Rules, 1937.
Disposing of the writ petitions, the Court
HELD: 1.1 By considering the grievances amongst the
airline passengers on the issue of refund of tickets by airlines,
the Directorate General of Civil Aviation has issued Civil Aviation
Requirements by proceedings dated 22nd May 2008. As indicated
in the said requirements when the tickets are purchased by means
of credit card payments, refund shall be made by airlines within
seven days of cancellation; in case of cash transactions refund
shall be made immediately; in case of purchase of tickets through
travel agents airline shall ensure that the refund process is
completed within 30 working days. Further directions were issued
to the airlines to refund all statutory taxes and User Development
Fee/Airport Development Fee/Passenger Service Fee to the
passengers in case of cancellation/non-utilisation of tickets. Similar
[2020] 12 S.C.R. 102
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such requirements are also issued by proceedings dated
06.08.2010 which were revised on 27.02.2019 and clause 3.3 of
the said Requirements deals with the issue relating to
‘cancellation of flight’ and the obligations on the airliner either to
offer an alternate flight or refund the ticket as acceptable to the
passenger. In ordinary course the said requirements are to be
followed by the airliner whenever there is a cancellation of tickets.
[Para 11][114-B-F]
1.2 The pandemic situation of COVID-19, has adversely
affected the economy globally, in several sectors. Our country –
India – and civil aviation sector is not an exception to the same.
To contain the pandemic situation of COVID-19, first lockdown
was imposed by the Government of India, from 25th March 2020
to 14th April 2020. In view of such lockdown, a ban on operation
of all domestic and international flights was imposed. The
lockdown period was further extended upto 03rd May 2020, with
the ban continuing on operation of all domestic and international
flights. There was an issue of refund of air fare during the lockdown
period, when domestic and international flights’ operation was
suspended. The Ministry of Civil Aviation (MoCA), while
acknowledging the unusual situation that has arisen due to the
lockdown imposed, to contain further spread of COVID-19 and
its consequential effect on the air passengers and airlines, by
examining the grievances received from various quarters, issued
an advisory to all stake holders in civil aviation sector in the
shape of Office Memorandum dated 16th April 2020. [Para 2][107-
E-H; 108-A]
1.3 Though the various contentious issues are raised on
both sides and at the same time the suggestions/formulations as
suggested by respondent nos.1 and 2 in the affidavits filed before
this Court are by and large acceptable to the majority of stake
holders. In ordinary course modalities and timelines for refund
on cancellation of tickets are governed by, the Civil Aviation
Requirements, i.e. CAR dated 22nd May 2008; 06th August 2010
as revised on 27th February 2019, and the said Requirements are
issued by the competent authority in exercise of powers under
the provisions of Aircrafts Act, 1934 and the Rules made
thereunder. But at the same time this Court cannot lose sight of
PRAVASI LEGAL CELL & ORS. v. UNION OF INDIA & ORS.
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SUPREME COURT REPORTS
[2020] 12 S.C.R.
the present situatio

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