Case:- Chand Mehra & Anr. British Airways PLC
Citation:- 2025:DHC:8427-DB
Date:- 23.09.2025
Hon’ble Delhi High Court Bench:- CHIEF JUSTICE DEVENDRA KUMAR UPADHYAYA & JUSTICE TUSHAR RAO GEDELA
The Hon’ble Delhi High Court has held that an agreement containing a provision for providing mere services on payment of certain charges cannot, in every case, be termed to be an agreement, dispute in respect of which can be said to be a commercial dispute.
- The Hon’ble Delhi High Court has ruled that not every agreement for services can be treated as a commercial dispute under the Commercial Courts Act, 2015.
- In the instant case, two passengers sued British Airways for a refund of cancelled flight tickets and filed it as a commercial suit.
- The District Court had already rejected the case, holding that such a refund dispute is not a commercial dispute under Section 2(1)(c) of the Act. The passengers relied on Section 2(1)(c)(xviii), arguing that agreements for provision of services fall within the scope of commercial disputes. British Airways countered that the contract was a simple consumer service, without any element of trade, commerce, or business.
- The Hon’ble High Court agreed that buying a flight ticket only means the airline must take a passenger to their destination, and this does not involve any commercial or mercantile transaction.
- The Hon’ble Court clarified that for a dispute over services to be “commercial,” it must involve business, trade, commerce, or financing activities.
- Since the case was purely about a refund and lacked commercial elements, the Hon’ble Court dismissed the appeal.
