Dispute of refund of cancelled air tickets is not commercial dispute
Judgment dated 23.9.2025 of the Division Bench of the High Court of Delhi in FAO (COMM) 245/2025 of Chand Mehra and another Vs. British Airways PLC
Section 2(1)(c)(xvIII) of the CC Act 2015 – Dispute of refund of cancelled air tickets is not commercial dispute
The plaintiffs filed commercial suit for the entire refund of the cancelled air tickets with interest. The defendant filed an application for return of plaint under Order VII Rules 10 & 11 of CPC on the ground that the dispute is not a commercial dispute.
HELD that once the plaintiffs purchased the air ticket, a contract was entered into. However, merely because the said contract came into existence it cannot be said that any commercial transaction took place between the parties. Such a transaction sans any element of business, trade or commerce cannot be termed to be the ordinary transaction of merchants or bankers or traders. It is not an agreement for sale of goods or provision of services. It is only a contract to provide services.
Dispute of refund of cancelled air tickets even if booked in business class and taxed under GST does not qualify as “commercial dispute”.
