Supreme Court Halts NCDRC’s Order: ITC Escapes ₹2 Crore Compensation for Bad Haircut

A bench comprising of Justices Aniruddha Bose and Sudhandra Dhulia issued a notice to Aashna Roy regarding ITC’s appeal against the NCDRC’s award, which has been challenged by the company. On Wednesday, the Supreme Court stayed an order by the National Consumer Disputes Redressal Commission (NCDRC) that upheld the compensation amount of 2 crores awarded to an aspiring model for a subpar haircut she received at the ITC Maurya hotel.

This case has entered its second round of litigation in the Supreme Court. In February of this year, the Supreme Court set aside the initial compensation amount awarded in September 2021 and sent the case back to the NCDRC for a fresh determination. After reevaluating the matter, the NCDRC reaffirmed its previous order.

The NCDRC based its order on the petitioner’s emails and applications for modeling and acting contracts, using them as evidence to support the compensation amount previously awarded. Since the initial order was issued in September 2021, ITC Hotels has been directed to pay the awarded amount along with 9 percent interest from that date.

The incident in question occurred in 2018 when the petitioner, Aashna Roy, visited the salon at the ITC Maurya hotel in New Delhi for a haircut ahead of an interview scheduled for April 12. Although she had requested her regular stylist, another stylist was assigned to her.

During the hair appointment, which she expected to be routine, it took the stylist over an hour to complete. To Aashna Roy’s surprise, the stylist disregarded her instructions and ended up cutting off nearly all her hair, leaving only 4 inches from the top and barely touching her shoulders.

In an attempt to rectify the situation, the hotel offered Roy a complimentary hair treatment, although she reportedly accepted it only after much persuasion.

Unfortunately, after receiving the treatment, Roy claimed that her hair became “hard and rough,” and she experienced itchiness and a burning sensation on her scalp. She later sought help from the hotel staff but alleged that they were “abusive, rude, and disrespectful” and even made threats against her.

Despite reaching out to both the ITC Group and the hotel management, Roy’s attempts to resolve the issue proved unsuccessful. Consequently, she filed a petition asserting that the opposing parties had provided deficient service and demanding a written apology from the ITC Management, along with 3 crores in compensation for the harassment, humiliation, and mental trauma she endured.

The NCDRC initially awarded Roy 2 crores, taking into account the haircut against her instructions at the hotel’s salon, which resulted in the loss of potential modeling assignments, substantial financial damages, and the shattering of her dream to become a top model. The NCDRC also found ITC Hotels liable for medical negligence.

Today, Senior Counsel Abhishek Manu Singhvi represented ITC Hotels before the Supreme Court, presenting their case.

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