Passenger wins Rs 3,100 after taking IRCTC to court over just Re 1; Kerala man challenges train ticket refund shortfall; consumer court delivers verdict

A Kerala passenger has won Rs 3,100 in compensation and litigation costs after taking the Indian Railway Catering and Tourism Corporation (IRCTC) to a consumer commission over a refund shortfall of just Re 1 on a cancelled train ticket. The District Consumer Disputes Redressal Commission in Kasaragod held that IRCTC's failure to refund the exact amount due amounted to a deficiency in service and an unfair trade practice. In its order dated October 5, 2026, the commission directed the corporation to refund the outstanding Re 1, pay Rs 100 as compensation and reimburse Rs 3,000 towards litigation costs.

The commission also directed IRCTC to pay 9% interest on the outstanding Re 1, calculated from the date the ticket was cancelled until the amount was realised. The corporation was given 30 days from the receipt of the order to comply.

How a Re 1 refund shortfall led to a consumer complaint

According to the order, the complainant, Sanjay Raj, aged 31, booked an AC three-tier train ticket through IRCTC on August 11, 2024. He paid Rs 553 for the ticket, which was for a journey scheduled on August 20, 2024. Raj subsequently cancelled the ticket on August 17, three days before the scheduled journey. Since the cancellation was made more than 48 hours before the journey, IRCTC deducted Rs 180 as the cancellation charge. It also deducted 5% GST, amounting to Rs 9. This took the total deduction to Rs 189. After accounting for the cancellation charges and GST, the passenger was entitled to receive Rs 341 as a refund. However, the amount credited to his account was only Rs 340. The difference of Re 1 became the subject of the consumer complaint.

Passenger sought Rs 2 lakh compensation from IRCTC

Raj approached the consumer commission, alleging that the failure to refund the correct amount had caused him confusion, mental tension and agony. He also described the deduction as a breach of trust and sought relief for the alleged deficiency in service.

The passenger initially sought Rs 1 lakh as compensation for the confusion caused and another Rs 1 lakh for the alleged breach of trust. He also claimed Rs 5,000 towards litigation expenses and demanded the remaining Re 1. His total claim amounted to Rs 2,05,001.

During the proceedings, Raj submitted documents supporting his complaint. These included the email confirming his ticket booking, the ticket cancellation email, his account statement and IRCTC's refund rules.

The order records that an advocate appeared for IRCTC and filed a version on behalf of the corporation. However, the commission rejected the version on the ground that it was barred by limitation.

What the consumer commission said about IRCTC's refund

The commission examined whether IRCTC's actions amounted to a deficiency in service or an unfair trade practice and whether the passenger was entitled to relief.

It observed that the passenger had received Rs 340 instead of the Rs 341 he was eligible for after the cancellation deductions. The commission also noted that IRCTC had not made any attempt to justify the deduction of the additional Re 1.

The cancellation of the ticket and the amount refunded were not disputed by the corporation, according to the order.

The commission concluded that the failure to refund the exact amount due amounted to a deficiency in service and an unfair trade practice. It held that the passenger was entitled to receive the outstanding amount along with compensation.

“Just because one rupee is paid less, the said fact really counts and the complainant is entitled to Rs 100 as compensation,” the order stated.

The commission also held that the passenger was eligible for litigation costs, which it fixed at Rs 3,000.

How much did the passenger get from the consumer commission?

The District Consumer Disputes Redressal Commission, Kasaragod, partly allowed the complaint and issued the following directions to IRCTC:

• Refund of Re 1: IRCTC must return the outstanding Re 1 to the passenger.
• Interest at 9%: The corporation must pay 9% interest on the outstanding amount from August 17, 2024, the date of ticket cancellation, until realisation.
• Compensation of Rs 100: The passenger must receive Rs 100 for deficiency in service and unfair trade practices.
• Litigation costs of Rs 3,000: IRCTC must reimburse Rs 3,000 towards the cost of litigation.

The compensation and litigation costs together amount to Rs 3,100, apart from the outstanding Re 1 and applicable interest.

The commission directed IRCTC to make the payments within 30 days of receiving the order. The decision was pronounced on October 5, 2026, by the District Consumer Disputes Redressal Commission, Kasaragod, with Krishnan K serving as president and Beena K G as member.