SC sets aside order for Rs 2 Cr compensation for faulty haircut to model

New Delhi: The Supreme Court has set aside the National Consumer Disputes Redressal Commission's order, awarding Rs 2 crore to a woman model due to alleged faulty haircut at ITC Maurya hotel's beauty salon in April 2018, damaging her job opportunity and assignments.

Emphasising damages cannot be awarded merely on presumptions or whims and fancies of the complainant, a bench of Justices Rajesh Bindal and Manmohan partly allowed an appeal filed by ITC Limited against April 25, 2024 order, which granted huge compensation to respondent Aashna Roy.

Having examined the matter, the court in its judgment on February 6, 2026 held that the Commission has committed an error in awarding the huge amount of compensation, which cannot be justified.

The court found whatever documents the respondent model produced along with her affidavit in support of her allegations were in the form of photocopies.

"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 said.

The court underscored, it was not a case where the Commission was considering a small issue where compensation could be awarded by applying a thumb rule.

It also held the Commission's observations that because of the trauma, she may not have maintained the originals of the documents produced, hence, reliance could be placed on mere photocopies, cannot be a justification for awarding such a huge compensation.

"Even if the photocopies were to be produced, there are other ways and means to justify the claim made on that basis. Even if the Code of Civil Procedure may not be strictly applicable, the Commission has not assessed as to how the respondent suffered loss to the tune of Rs 2,00,00,000. General discussion in the impugned judgment may not justify the same,'' the bench said.

The court modified the order by directing that the respondent would be entitled to compensation of Rs 25 lakh already deposited by the ITC in the previous round of litigation.