Bengaluru consumer court orders Sherlock's Pub to pay customer ₹3k over ₹128 service charge

The Bengaluru Urban District Consumer Disputes Redressal Commission recently emphasised that restaurants and pubs cannot compel consumers to pay a service charge.

The order was passed by the Commission's In-Charge President, V Anuradha and Member H Janardhan on September 25, following a complaint filed by Bengaluru resident RS Rudresh.

Rudresh claimed that in March this year, he was forced to pay a ₹128 service charge at Sherlock’s Pub in Nagarabhavi, even though he told the management that there were Central Consumer Protection Authority (CCPA) guidelines stating that no customer can be compelled to pay such charges.

By a September 25 ruling, the district consumer commission in Bengaluru (Urban) directed Sherlock’s Pub to refund the ₹128 collected as part of a forced 7.5 per cent service charge, along with 8 per cent annual interest.

It also directed the pub to pay ₹2,000 as compensation for damages and mental agony and ₹1,000 towards litigation costs.

“The conduct of the Opposite Party (Sherlock’s Pub) was not the result of any inadvertent billing error but was carried out pursuant to a stated management policy, thereby indicating a systematic practice of imposing service charge irrespective of the consumer's choice," the consumer commission held.

According to Rudresh's complaint, he visited Sherlock’s Pub along with a friend on March 24, 2026, to avail of its food and dining services. At the time of placing the order, he allegedly objected to the service charge displayed in the menu and informed the pub staff that it could not be compulsorily imposed.

The manager, however, allegedly informed him that a 7.5 per cent service charge would be compulsorily added to the bill.

Rudresh then pointed out CCPA which state that service charge is voluntary and cannot be forcibly collected from consumers.

Despite this, the manager allegedly maintained that the charge was mandatory and was being levied pursuant to the management's instructions. The consumer was also allegedly told that dining services would not be provided unless he agreed to pay the charge.

The consumer ultimately paid ₹1,887, which included ₹128 towards the 7.5 per cent service charge.

He subsequently issued a legal notice dated April 10 seeking a refund of the service charge and compensation. The pub neither responded to the notice nor complied with his demand.

He proceeded to approach the district consumer commission with a complaint.

The commission noted that the CCPA guidelines specifically provide that no hotel or restaurant shall force a consumer to pay a service charge and that consumers must be informed that such payment is voluntary, optional and entirely at their discretion.

The commission also noted that the pub did not appear before it despite service of notice and that the complainant's documentary evidence supporting his complaint remained unchallenged.

It proceeded to hold the pub liable for deficiency of service and ordered it to refund the service charge amount and pay compensation along with litigation costs to the customer within 45 days of receiving the commission's order.

Failure to do so would attract 10 per cent annual interest on the ₹128 refund amount from the date of default until realisation, the commission added.

Advocate S Sumantha appeared for the complainant (Rudresh RS).

[Read Order]