Mumbai, October 19, 2026: Cream Centre, operated by Prince Cuisine Pvt Ltd, has unconditionally withdrawn its appeal before the Maharashtra State Consumer Disputes Redressal Commission challenging a 2024 order directing it to stop levying mandatory service charges on customers.
The company has also undertaken to unconditionally withdraw its revision petition pending before the National Consumer Disputes Redressal Commission (NCDRC) against the same order.
The development came during the hearing of the appeal on October 12, 2026, following an objection raised by advocate Yogesh Patki, who had filed the original complaint against the restaurant’s practice of imposing a compulsory five per cent service charge on customers.
District Commission Had Ordered Refund
In April 2024, the District Consumer Disputes Redressal Commission allowed Patki’s complaint and directed Prince Cuisine not to recover mandatory service charges.
It also directed the restaurant to refund ₹29.45 collected as service charge and pay ₹25,000 as compensation. At Patki’s request, both amounts were directed to be deposited in the Consumer Welfare Fund, as he had not sought any monetary benefit for himself.
Patki had filed the complaint in July 2017 against Cream Centre at Girgaum Chowpatty after receiving a bill that included a five per cent service charge. He contended that making the charge compulsory amounted to an unfair and restrictive trade practice under the Consumer Protection Act.
“The quantum of service charge has to be left to the discretion of the customers who avail the service as it is the customer only who can decide the quantum of the service charge depending upon various factors including the quality of service,” he had stated, adding that the service-charge column in the bill should be left blank to enable customers to decide whether they wished to reward the staff.
The restaurant, during the proceedings before the District Commission, had denied the allegations, maintaining that the service charge was prominently displayed at several places on its premises, including the entrance, front desk and menu.
The commission had observed that levying a mandatory five per cent service charge over and above the food and beverage bill falsely represented that the services provided were of a particular standard or quality. It noted that the restaurant’s overall dining experience included its ambience, air-conditioning, crockery, carpets, furniture and service staff.
Supreme Court Had Set Aside NCDRC Order
Challenging the District Commission’s order, Prince Cuisine approached the State Commission in May 2024 and sought a stay on its implementation to enable it to continue collecting the charges. Patki opposed the application, following which the State Commission declined to grant interim relief and scheduled the appeal for hearing.
The company subsequently approached the NCDRC in June-July 2024 by filing a revision petition seeking a stay on the District Commission’s order. According to Patki, neither the company nor the National Commission served him a copy of the revision petition, and the NCDRC stayed the District Commission’s order without hearing him.
Patki then approached the Supreme Court, which set aside the NCDRC’s order in January 2025 and remanded the matter to the National Commission for fresh consideration after hearing him.
Company Withdraws Appeal Unconditionally
Since January 2025, Prince Cuisine had been pursuing parallel proceedings against the District Commission’s order before the State Commission and the NCDRC. When the appeal before the State Commission came up for hearing on October 12, 2026, the company sought to withdraw it.
Patki submitted that the company should unconditionally withdraw the appeal and also undertake to unconditionally withdraw the revision petition filed before the National Commission.
“When the appeal before State Commission came up for hearing on October 12, 2026 they wanted to withdraw the appeal. I submitted that they have to unconditionally withdraw the appeal and also undertake to unconditionally withdraw the revision filed before the National Commission. Prince Cuisine agreed and has unconditionally withdrawn the appeal before the State Commission and also undertaken to unconditionally withdraw the revision before the National Commission,” advocate Patki informed FPJ.
Also Watch:
It was then that the restaurant’s advocate submitted that Prince Cuisine wished to withdraw the appeal unconditionally and would also unconditionally withdraw its revision petition before the NCDRC. Accepting the submission, the State Commission disposed of the appeal as unconditionally withdrawn.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
