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ITC Limited vs. Aashna Roy

Civil Appeal · 2023 INSC 100Decided 7 Feb 2023
Civil Appeal No. 6391 of 2021
Aniruddha Bose · Vikram Nath

Background

The respondent visited the salon at Hotel ITC Maurya, New Delhi for a haircut ahead of a job interview, giving specific instructions for a trim, but the stylist assigned (a substitute for her regular stylist) allegedly chopped off far more hair than instructed. On a later visit for a hair treatment/extension arranged by the salon to make up for this, she alleged the treatment used excess ammonia and damaged her scalp. She complained to salon staff and eventually to ITC's top management, but felt she was treated rudely, and filed a consumer complaint seeking Rs. 3 crore in compensation for loss of career (she said she worked as a hair-product model), mental trauma and humiliation. The National Consumer Disputes Redressal Commission (NCDRC) found deficiency in service and awarded her a lump-sum of Rs. 2 crore, and ITC appealed to the Supreme Court.

Decision Breakdown

The Supreme Court declined to disturb the NCDRC's factual finding that there was a genuine deficiency in service, since that finding was based on evidence like affidavits, CCTV footage and chat records. However, it found the Rs. 2 crore compensation figure itself was not backed by any real evidence, despite being repeatedly asked (and even offered free legal aid, which she declined, arguing her own case), the respondent, who represented herself throughout, could not produce proof of her actual job, income, or any concrete modelling contracts to substantiate the claimed loss of career and income. The Court held that while compensation for pain, suffering and trauma could still be justified, an amount as large as Rs. 2 crore without supporting material was excessive and unsustainable. It set aside the NCDRC's award and sent the matter back to the NCDRC, giving the respondent a fresh opportunity to produce evidence to support her claim, with the appellant given a chance to rebut it.

Lesson Learnt

Even where a business is genuinely at fault, a consumer seeking a large compensation award must still back up the specific financial and career losses claimed with real evidence. Courts and tribunals cannot hand out large lump sums based on the emotional weight of a complaint alone.

Official source (sci.gov.in)View Judgment (PDF)

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