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High Court stays LMD order on not taking service charges in Hotels in J&K


S. Sidartha Paramedical Training Institute, Sunjwan, Jammu

JAMMU: High Court has stayed the communication directing the hotels not to take service charges from the consumers.

The petition filed through employees of Lords Inn Hotel seeking quashment of the notice impugned bearing No. LM/DC/(Enf.)/139-44 dated 26.10.2016 and notice dated LM/DC (Enf.) 194-200/2016, dated 19/11/2016 issued by the Deputy Controller, Legal Metrology Department.

Advocate Pranav Kohli submitted that petitioners are working on monthly salary basis and  "Management is paying regular insurance as also Provident Fund at the rate of 1.75% (ESI) and 12% (PF). The service charges so collected by the hotel management are distributed amongst all the employees of the hotel at the end of the month. Distribution of service charges is on pro-rata basis i.e. equal distribution amongst all staff members." 

After hearing the counsel for the petitioner, Justice Tashi Rabstan stayed the communication asking hotel not to take service charges from the consumers.
 

 

 


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