Weights and measures
December 18, 2017
Federation of Hotel and Restaurant Associations of India v. Union of India
Date of Judgment: December 12, 2017
In this recent judgement, the Supreme Court has settled the contentious issue of hotels/ restaurants supplying packaged water bottles at a price higher than the Maximum Retail Price (MRP). The Supreme Court in the case has reaffirmed Delhi High Court’s impugned order passed in 2007 which stated that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standard Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or Restaurateur to its customers.
Brief Background of the case: In the instant case, the impugned order was passed by the Single Judge of Delhi High Court in 2007, wherein it was held that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standard Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or Restaurateur to its customers.
In the meanwhile, the Standard Weights and Measures Act, 1976 and Standard Weights and Measures Act, 1985 were repealed by the Legal Metrology Act, 2009.
The impugned order of Single Judge was challenged before the Division Bench which held that there was no need to set aside or affirm the judgment of the learned Single Judge. However the question of law adjudicated upon by the learned Single Judge was left open for adjudication in any fresh proceeding under the new law and the judgment of the learned Single Judge shall not be a precedent in any such adjudication even if the concerned provisions of the old and the new law are identical/similar.
In the instant appeal before the Supreme Court, the Appellant’s main grievance was that the Controller of Weights and Measures was seeking to proceed against the hotels and restaurants of the appellant-Association for charging a price higher than the MRP for supply of packaged water bottles during services provided to their customers while in the hotels and restaurants.
Appellant’s contention– The Appellant contended that the transaction consisted predominantly of a service, and not of a sale of drinking water, consisted of a composite charge which included incidental charges for food, drinks etc. The Appellant further contended that any de novo[1] proceeding under the Legal Metrology Act, 2009, which has since replaced the two Acts of 1976 and 1985, would transgress the rights of the appellant’s clients as this has to be gone into de novo. Appellant association further contended that the position under the two statutes, namely, the 2009 Act as well as the repealed Acts is identical, then the Single Judge’s judgment, if it is otherwise good in law, would require to be confirmed more
Federation of Hotel and Restaurant Associations of India v. Union of India
Date of Judgment: December 12, 2017
In this recent judgement, the Supreme Court has settled the contentious issue of hotels/ restaurants supplying packaged water bottles at a price higher than the Maximum Retail Price (MRP). The Supreme Court in the case has reaffirmed Delhi High Court’s impugned order passed in 2007 which stated that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standard Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or Restaurateur to its customers.
Brief Background of the case: In the instant case, the impugned order was passed by the Single Judge of Delhi High Court in 2007, wherein it was held that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standard Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or Restaurateur to its customers.
In the meanwhile, the Standard Weights and Measures Act, 1976 and Standard Weights and Measures Act, 1985 were repealed by the Legal Metrology Act, 2009.
The impugned order of Single Judge was challenged before the Division Bench which held that there was no need to set aside or affirm the judgment of the learned Single Judge. However the question of law adjudicated upon by the learned Single Judge was left open for adjudication in any fresh proceeding under the new law and the judgment of the learned Single Judge shall not be a precedent in any such adjudication even if the concerned provisions of the old and the new law are identical/similar.
In the instant appeal before the Supreme Court, the Appellant’s main grievance was that the Controller of Weights and Measures was seeking to proceed against the hotels and restaurants of the appellant-Association for charging a price higher than the MRP for supply of packaged water bottles during services provided to their customers while in the hotels and restaurants.
Appellant’s contention– The Appellant contended that the transaction consisted predominantly of a service, and not of a sale of drinking water, consisted of a composite charge which included incidental charges for food, drinks etc. The Appellant further contended that any de novo[1] proceeding under the Legal Metrology Act, 2009, which has since replaced the two Acts of 1976 and 1985, would transgress the rights of the appellant’s clients as this has to be gone into de novo. Appellant association further contended that the position under the two statutes, namely, the 2009 Act as well as the repealed Acts is identical, then the Single Judge’s judgment, if it is otherwise good in law, would require to be confirmed more
Viewed by 250
I would like to submit as below: 1. The restaurant and hotels and even multiplexes have been mandated with supply of drinkable RO water. Now it is for the enforcement agencies to ensure that it is implemented. In case the hotel industry is working unethically, the diners also have to rise up and complaint to the appropriate authorities if drinkable water is not supplied. Let those complaint be also put on the public domain. 2. Avoid consuming packaged water when the drinkable water is being supplied. Please ensure that the glasses in which it is served or hygienically cleaned and served. 3. I will request Shri G.C. Mathur to work out an appeal before Supreme Court and request Department of Consumer Affairs to provide the funds for Appeal/ PIL 4. The LC administrator may post opinion poll which can be shared with Shri G.C. Mathur in case he is accepting to file appeal/PIL. Remember it is not the question of resturant and hotel industry, it will be applicable everywhere like Airports, Railway Stations, Multiplexes, Shopping malls, Tourist places, Hospital (where not only the prices of water will be higher than MRP but also medicine could be sold at more than MRP) etc. etc and we need to oppose such practices by hook or crook. It is true that the restaurants and hotels are not retailing the packaged water but providing the services and amenities but is is also true that the diners are not visiting to for availing the services of water only but other products also which are already priced disproportionately. In most of the instances specially on highways the diners also buy the additional bottles of water for consumption while driving the vehicle and in those cases you are not availing any additional services. more
Dec 19
I would also like to add that the Hon'ble S.C. has delivered an errored judgment by not taking into account the discounts given to the bulk buyers/retailers like hotels and restaurants in the country. Besides, such establishments including banquet halls and places for marriages, are not the retail establishments where they can retail the packaged commodities like water bottles. They supply an essential item in the water as a supplement to food intake. Appeal does lie in SC for a revision petition. more
Dec 19
Supreme Court has given a judgement on the pretext of interpretation of law and regulations and not on the basis moral values. Hotels and Restaurants do serve regular water claimed to be additionally treated at no extra charges to consumers who essentially need it with the meals, as an ethics of culture prevailed in the country for long. When packaged water is charged additionally for overheads is absolutely uncalled for. Packaged water is supplied at a lower price than MRP to cover the overheads of bulk buyers such as hotels, restaurants and retail vendors. There was a need for the honourable judges to know the reality in the market and society and then they should have taken a view and given the judgement considering themselves a part of society, as well. more
Dec 18
It is these negative thoughts which enhance the guts and Morales of such unscrupulous traders to demand more to fulfill their pockets.Water is a neceesaty and should be termed as different,any pre made drink,eatery etc.having a MRP should be sold on MRP as it includes profit already,regarding food it is if prepared can be charged by the seller and you can eat if you wish to spend.That too is mandatory to keep a Menu outside or at the gate of the restaurant which you must have noticed.So do not waste your hard earned money on wrong notions to fulfill their pockets. more
Dec 18
IF ONE CAN PAY TEN TIMES FOR DRINKS AND FOOD, WHY NOT FOR WATER. YOU ARE LUCKY YOU ARE NOT CHARGED FOR HOT AND COLD AIR. more
Dec 18
It is these negative thoughts which enhance the guts and Morales of such unscrupulous traders to demand more to fulfill their pockets.Water is a neceesaty and should be termed as different,any pre made drink,eatery etc.having a MRP should be sold on MRP as it includes profit already,regarding food it is if prepared can be charged by the seller and you can eat if you wish to spend.That too is mandatory to keep a Menu outside or at the gate of the restaurant which you must have noticed.So do not waste your hard earned money on wrong notions to fulfill their pockets. more
Dec 18
