Hon’ble Supreme Court Justices bench hearing a plea questioned the issuance of air tickets refund due to cancellation of flights as a consequence of COVID-19 causing lockdown starting from March 25. An affidavit was filed by DGCA in this regard that a full refund will be given by airlines immediately for the tickets that were booked during lockdown for domestic/international travel. NGO Pravasi Legal Cell’s advocate said that if a passenger books tickets in airlines like Air India, Indigo etc. and travel out of India then the affidavit filed by DGCA is applicable. Moreover, he further argued that DGCA should also give refund to those carriers to come back to India like the Gulf Countries and this may be cleared. 

It was admitted from the side of Ministry of Civil Aviation and DGCA that the government has taken a decision of refund keeping in view the welfare of all and it will work out a proper solution. Solicitor General Tushar Mehta from the government side said that an overall approach will be adopted in the interest of passenger and airlines. The Hon’ble court questioned if a passenger has booked a flight ticket to fly during the period of lockdown or prior to one day before it, then what will happen to refund? 

Solicitor General Tushar Mehta asserted that he would not get his refund immediately. The bench further asked about the refunds of a travel agent who has already paid for the tickets booked and what would happen to travel agents if the passenger is yet to pay for the booked ticket in the case of credit shell is given. Usually, these travel agents deposit with airlines a Corpus of Rupees on Crores and its balance decreases with the issuance of each ticket. To this, Solicitor General Tushar Mehta replied that it is an exceptional situation and the government is doing its best to prevent the interest of passengers all stakeholders and someone has to bear the loss. Opposing this Senior Advocate Pinaki Misra appearing for Air Vistara and Air Asia said that DGCA’s approach is one size glove fits all and the regulatory body of aviation can not say you must refund. Further, he averred that if a passenger accepts my offer willingly, how can I be implored to pay a refund? I can’t pay 9% interest on the refund amount as by doing so airlines may need a moratorium. 

Speaking on behalf of passengers Associate Advocate Sundaram said that there isn’t any question of entitlement of moratorium as this is the case of individual refunds. Solicitor General Tushar Mehta said that he will file a better affidavit with regard to modalities of refund of tickets booked for flights which were cancelled as the instant affidavit is poorly drafted on this aspect.