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In an interim arrangement, Delhi High Court on Tuesday asked the members of a restaurant body to use the term "staff contribution" for "service charg
Justice Prathiba M Singh, who was hearing the petitions against guidelines prohibiting hotels and restaurants from automatically levying service charge on food bills, directed the Federation of Hotels and Restaurant Associations of India (FHRAI) to clearly specify the imposition in their menu cards and not charge more than 10 per cent of the bill.
Justice Prathiba Singh, who passed the order, however made it clear that this was only an interim order and not a final one. The judge further more capped the levy of staff contribution to 10 percent of the bill and directed the restaurants to mention the same in their menu cards
Justice Prathiba M Singh remarked that she cannot turn a blind eye the CCPA's submissions that service charge in some of the restaurants go as high as 20%.