By accepting the Center’s proposal, the higher court ordered that if the tickets had been booked through an agent to travel within the blackout period, in all these cases, the airlines will refund the full amount immediately and the amount will be transferred immediately by the agent. to the passengers.
It said: “If due to financial problems, any airline / airlines cannot reimburse, then they will provide a credit shell, equal to the amount of the fare charged, on behalf of the passenger when the reservation is made directly by the passenger or through an agency of trips to consume it before March 31, 2021 “.
Passengers can use said credit deposit until March 31, 2021 on any route of their choice or transfer the credit deposit to anyone, including the travel agent in question, and airlines will honor such transfer, the higher court said. .
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A bench of judges Ashok Bhushan, R Subhash Reddy and MR Shah said that the suggestions and formulations reached the meeting held by the Ministry of Civil Aviation (MCA), Director General of Civil Aviation (DGCA), which are acceptable to the majority of The interested parts. they must be implemented in letter and spirit.
“We also feel that such formulations are viable solutions in these peculiar circumstances prevailing in the country,” the bank said, while passing a series of instructions for the refund of air tickets to upset passengers, whose flights were canceled due to the pandemic. induced block.
The high court’s verdict came in a number of petitions, including those from NGOs and passenger associations, seeking full refund of the ticket fare for the canceled flights.
He said that the court cannot lose sight of the current situation prevailing in the country and around the world regarding the effect of the Covid-19 pandemic and any strict enforcement actions of the Civil Aviation Requirement (CAR) (aviation standards ) against airlines. it would further restrict its operations.
“It cannot be denied that the civil aviation sector, which is one of the important sectors, is seriously affected by the ban imposed on the operation of flights. Added to the same, air passenger traffic has been reduced considerably and is gradually being restored, ”said the high court.
He added that any such enforcement action can further jeopardize the airlines’ chances of cash generation, which can further affect or delay the refund cycle.
“Strict enforcement of civil aviation requirements at this time may not produce any meaningful results for any interested party,” the bank said.
He said that passengers who booked tickets in any time period except for travel after May 24, then the refund of fares to passengers covered under this category will be governed by the provisions of CAR.
“Even for international travel, when the tickets have been booked on an Indian airline and the booking is outside of India (flights originating in India), if the tickets were booked during the blackout period to travel within the blackout period , an immediate refund will be made, “the bank said in its order.
If tickets are booked for international travel on a foreign airline and the booking is outside of India during the blackout period for travel within the blackout period, the airlines will grant a full refund and said amount will be immediately transferred by the agent to the passengers, wherever such tickets are booked through agents, he added.
“In all other cases, the airline will reimburse the amount charged to the passenger within three weeks,” emphasized the bank, adding that the credit shell issued in the passenger’s name will be transferable and can be used until March 31. 2021 and the airline in question will honor such transfer by designing a mechanism to facilitate such transfer.
“It is also made clear that this type of credit deposit can be used by the agent in question through which the ticket is reserved, for the use of third parties. It is also clarified that even in cases where the credit shell is transferred to a third party; the same will be used only through the agent who booked the ticket in the first instance ”, he indicated.
Judge Reddy, who wrote the verdict on behalf of the court, said that in cases where passengers have purchased the ticket through an agent and the credit deposit is issued in the passenger’s name, said credit deposit should only be used through the agent who booked the ticket.
He said that in cases where tickets are booked through an agent and the credit shell is issued in the passenger’s name and is not used until March 31, 2021, then the “refund of the fare charged will be made to the same account from which they were received by the airline ”.
The bank said that in all cases in which a credit shell is issued there will be an incentive to compensate the passenger from the date of cancellation until June 30, 2020, in which case the credit shell will be increased by 0.5 percent. of the face value (the amount of the fee charged) for each month or part of it between the cancellation date and June 30, 2020.
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