The Supreme Court held on Tuesday that hotels and restaurants can charge their customers / guests more than the maximum retail price (MRP) marked on a bottle of mineral water. While claiming that hotels and restaurants are not required by MRP to sell bottled and bottled mineral water by third parties, a bank led by Judge Rohinton Nariman rejected the Center’s position that selling bottled mineral water above the MRP will attract a fine and administration. of restaurants, hotels, etc. He said that the client does not go to a hotel or restaurant just to buy bottled water, but wants to enjoy the atmosphere available there, so the services are also involved. While the government had said that charging higher prices was not only against consumer interest, but could also lead to tax evasion, the Federation of Hotel and Restaurant Associations of India had argued that charging mineral water prices for above the MRP during the service does not violate the provisions of the Law of Standards of Weights and Measures / the Rules of Packaged Goods nor the new law. “There is an element of service, which is why MRP can not apply,” the Association said, adding that irreparable damages and injuries will be caused to its members if the Center is allowed to initiate proceedings under the 2009 Law on Legal Metrology.
In October 2015, the Supreme Court requested the government’s response in an appeal filed by the Association seeking to set aside the divisional bank of the Delhi HC order of February 2015 which maintained the authority of the Center to initiate legal proceedings against restaurants and hotels for selling bottled mineral water. MRP according to the Law of 2009.
The HC tribunal, in disposing of the appeals filed by the government, maintained the issue of the law, which was decided by its sole judge, open to trial in any new proceedings under the new law. He also maintained that the order of a single judge of March 2007 “will not be a precedent” in any case, even if the provisions in question of the old law (repealed) and the new law were identical.
The order of the HC court had annulled the binding effect of the Vikramjit Sen order of 2007 which ruled that hotels and restaurants in the Capital can sell bottled mineral water above the MRP to customers who visit them and enjoy their other service facilities. . Sen observed that “the client does not enter a hotel or restaurant to make a simple purchase of bottled water, it is very possible that a client orders nothing more than a bottle of water or a drink, but his direct purpose in doing so would be to clearly enjoy of the environment available in it and order any item for consumption “.