Customer books Bali tour but it gets cancelled due to Covid; after pandemic, travel agency keeps rescheduling it, court awards him Rs 1.12 lakh payout

A district consumer commission in Kerala has directed a travel agency to refund Rs 82,500 to a customer after finding deficiency in service and unfair trade practice over its failure to conduct a Bali tour or return the money for several years. The commission also awarded Rs 25,000 as compensation for mental agony, inconvenience and hardship and Rs 5,000 towards litigation costs. The order was passed on August 31, 2026.

Why did the customer approach the commission?

According to the commission's order, the customer booked a three-night, four-day Bali tour package with Kerala Travel Zone after seeing advertisements for the package on social media. He paid Rs 60,000 on December 23, 2019, and another Rs 22,500 on December 26, taking the total amount paid to Rs 82,500.

The tour could not take place because of the Covid-19 pandemic. However, the customer said that after international travel resumed, he repeatedly contacted the agency, asking it either to conduct the tour or refund his money.


The agency allegedly kept postponing the journey and later informed him that the tour would take place on December 28, 2022. The trip was subsequently rescheduled to April 10, 2023, but was not conducted even then.

The customer then sent a legal notice seeking a refund of Rs 82,500 along with compensation. Although the agency received the notice, it neither responded nor returned the money.

He told the commission that the agency's conduct had caused him financial loss, inconvenience, mental agony and disappointment.

The travel agency and its proprietor did not appear before the commission despite receiving notices and were therefore proceeded against ex parte.

What did the commission find?

The bench comprising president C.T. Sabu and members Sreeja S. and Ram Mohan R. noted that the customer's bank statements established payment of Rs 82,500. The agency had also issued a letter relating to the rescheduling of the proposed journey.

The commission said the customer's documentary evidence remained unchallenged because the opposite parties chose not to contest the complaint.

“In ex parte proceedings, though the burden initially lies upon the complainant, once reliable documentary evidence is produced and the same remains unchallenged, there is absolutely no reason to disbelieve such evidence,” the commission held.

The bench acknowledged that the Covid-19 pandemic had prevented international tours during the relevant period. However, it said that once restrictions were lifted and international tourism resumed, the agency was required either to conduct the agreed tour or refund the customer's money within a reasonable period.

“Instead of adopting either course, the opposite parties repeatedly postponed the journey and continued to retain the complainant's money for several years without rendering any service whatsoever,” the commission said.

It held that retaining the customer's money for years without providing the promised service amounted to deficiency in service under Section 2(11) of the Consumer Protection Act, 2019.

The commission also held that repeatedly postponing the tour after receiving the package amount amounted to an unfair trade practice.

“Further, inducing consumers to pay the package amount by advertising tour packages and thereafter continuously postponing the service without refunding the consideration also amounts to an unfair trade practice as contemplated under Section 2(47) of the Act,” it held.

The commission said the pandemic was beyond the travel agency's control when the original tour could not take place, but its subsequent failure to either conduct the tour or refund the money was not justified.

How much will the travel agency have to pay?

The commission directed the travel agency and its proprietor to jointly and severally refund Rs 82,500 with 9% annual interest from the date of filing of the complaint until realization.

It also awarded Rs 25,000 as compensation for mental agony, inconvenience and hardship, along with Rs 5,000 towards litigation costs.

This takes the total amount awarded to Rs 1,12,500, apart from the interest payable on the Rs 82,500 refund.

The agency and its proprietor have been directed to make the payment within 45 days of receiving the order. In case of default, the Rs 25,000 compensation will also attract 9% annual interest from the date of default until realization.