The Supreme Court held that there is no legal restriction on hotels and restaurants that sell packaged mineral water bottles above maximum retail price (MRP) rates as there is no prevailing law that prevents such a sale and neither the Standards of Weights and Measures Act, 1976, read with the Standards of Weights and Measures (Enforcement) Act, 1985, or the Legal Metrology Act, 2009, would apply so as to interdict the sale of mineral water which is above the MRP.
In Federation of Hotel and Restaurant Associations of India v Union of India and Ors, the Supreme Court set aside the judgment passed by the division bench of Delhi High Court and upheld the judgment passed by a single judge that held that charging prices for mineral water in excess of printed MRP in hotels and restaurants does not violate any of the provisions of the Standards of Weights and Measures Act, as this does not constitute a sale or transfer of these commodities by the hotelier or restaurateur to its customers.
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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
