Ticket refund for cancelled Flight: SC accepts DGCA Plan, allows credit shells till March 2021

In a relief to passengers who had booked plane tickets during the Covid-19 lockdown, the Supreme Court Thursday allowed airline companies to set up ‘credit shells’ with life up to March 31, 2021, and a complete refund if the money remained unused on the cut-off date.

A bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah clarified that in cases where tickets were booked through travel agents, the money would be utilised through these agents and not directly by the passenger.

Supreme Court:

The apex court, which had reserved its verdict in the case on September 25. It said it was accepting all the suggestions put forth by the Director General of Civil Aviation (DGCA). Regarding the refund of tickets for flights cancelled due to the Covid-19 lockdown.

The DGCA had proposed the credit shell facility instead of an immediate refund given the financial distress of some airlines amid the pandemic.

The refund would be applicable on flights originating in India, both domestic and international, and booked for the lockdown period.

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The top court’s order came on a petition by Pravasi Legal Cell and Air Passengers Association. In addition, they demanded refund for tickets booked prior to the lockdown.

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