Supreme Court trims ₹2 crore penalty awarded to model for bad haircut at ITC Maurya down to ₹25 lakh

The Supreme Court recently partly set aside an order of the National Consumer Disputes Redressal Commission (NCDRC) that had awarded ₹2 crore in compensation to a model for a bad haircut she had at the ITC Maurya hotel [ITC Limited v. Aashna Roy].

A Bench of Justices Rajesh Bindal and Manmohan held that the claim for compensation running into crores was not supported by reliable evidence.

“The damages cannot be awarded merely on presumptions or whims and fancies of the complainant. To make out a case for award of damages, especially when the claim is to the tune of crores of rupees, some trustworthy and reliable evidence has to be led,” the Court observed.

It thus trimmed down the compensation to ₹25 lakh, which had already been released to the model in terms of earlier directions.

This is the second round of litigation in the matter before the apex court.

The case dates back to April 2018, when the model, Aashna Roy, was slated to appear for an interview. Before the interview, she went to the salon at the ITC Maurya hotel in New Delhi for a haircut.

She alleged that her hair was cut shorter than instructed. She subsequently accepted complimentary treatment offered by the hotel, but later claimed that it damaged her hair and scalp.

Roy then approached the consumer forum alleging deficiency in service and sought a written apology along with compensation of ₹3 crore for harassment, humiliation and mental trauma.

In September 2021, the NCDRC had held ITC guilty of deficiency in service and awarded Roy ₹2 crore in compensation.

ITC challenged that order before the Supreme Court. In February 2023, the top court upheld the finding of deficiency, but set aside the amount awarded, noting that there was no material on record to justify such a high figure.

The matter was remitted to the Commission to reassess damages after giving Roy an opportunity to produce evidence and granting ITC liberty to rebut the same.

Before the NCDRC, the model enhanced her claim to ₹5.2 crore and placed additional documents on record to show that she had lost significant professional opportunities. The NCDRC reaffirmed its award of ₹2 crore along with interest at 9% per annum, prompting ITC to approach the Supreme Court again.

In the latest round of litigation, the Supreme Court held that this was not a case where compensation could be determined on a thumb rule and that the complainant was required to establish the actual loss suffered due to the deficiency in service.

It noted that the complainant had relied primarily on photocopies of emails, certificates and communications to support her claim that she lost modelling and film opportunities.

However, the Court found that the alleged loss could not be established merely on the basis of such material.

“This could not be established by merely producing photocopies of the documents. Even the discrepancies in the photocopies produced on record by the respondent, as pointed out by the appellant, have been noticed above. Thus, even after remand, the respondent has not been able to make out a case for award of such huge compensation,” the judgment stated.

[Read Judgment]