SC reserves order on refund for flights cancelled during Covid-19 lockdown; to consider Centre's refund voucher suggestion

The Supreme Court on Friday reserved its judgement on a plea on the refund of airfare for the flights cancelled due to Covid-19-induced lockdown. The top court said that it would consider the DGCA's suggestion of transferable refund vouchers to the passengers.

A bench presided over by Justice Ashok Bhushan wrapped up its hearing on a petition filed by NGO Pravasi Legal Cell and others for a refund of ticket fare.

Solicitor General Tushar Mehta, appearing for Centre and the Directorate General of Civil Aviation (DGCA), said that transferrable refund vouchers can be issued to the passengers, which can be used by the travel agents, who had booked tickets.

The bench said, “If the travel agents can use the vouchers of the passengers then it is a fair enough suggestion”.

Mehta explained the modalities of the refund to be given to the passengers and how it would work.

The court also asked whether the money would go to the account of the travel agent if the refund voucher wasn't used by the passenger within the deadline.

To this query, Mehta said that the government didn't know the travel agents or recognise them since there was no registration and an agent buys tickets in blocks as per the contract between him and the airline.

The DGCA cannot control the inter se contractual obligations between agents and passengers, he said, adding the government has done its best to ensure that the passenger either gets the money back or gets the voucher which is transferable.

He said that a passenger concerned may surrender the ticket and travel agents can sell the tickets to others but ordering the refund for all the passengers will not be good for the airlines.

Mehta also said that the travel plan can be changed and alternate tickets can be issued.

Senior advocate Pallav Sisodia, appearing for travel agents' body, said that the airlines cannot be saved from insolvency at the cost of their insolvency.

Senior advocate Mukul Rohatgi, appearing for IndiGo airline, said that he has no difficulty with the arrangement.

Senior advocate Sanjay Hegde, appearing for NGO 'Pravasi Legal Cell,' raised the concern of refund of ticket booked from abroad.

The bench told senior advocate Arvind Dattar, representing GoAir, that the government had given time till March next year to refund the money and if the airline wanted more time then it needs to approach the government.