4. In this writ petition, it is the allegation of the petitioners that though it is obligatory on the part of the respondent­airlines, operating domestic as well as international flights, to refund the full amount collected for the tickets which are not utilised in view of the cancellation of flights in the wake of restrictions imposed by Government of India to contain COVID­19, respondents are providing a credit shell with the validity of one year, which is contrary to Civil Aviation Requirements (CAR) of May 2008.  It is alleged that as per the CAR, the option of holding refund amount in credit shell by the airlines shall be prerogative of the passenger and not a   default   practice of the airline. While referring to O.M. dated 16.04.2020 issued by the MoCA, it is alleged that the said Memorandum deals only with the refund for the tickets that were booked during the lockdown period and leaves out the majority of passengers who had booked tickets before the flights were banned.  It is the case of the petitioners that by issuing O.M.  dated 16.04.2020,  the Government  has indirectly approved the practice of airlines for providing Credit Shell for the tickets booked before the lockdown was declared and the same is in violation of CAR.  By further alleging that the time lines for refund as mentioned in the O.M. dated 16.04.2020 runs contrary to CAR, petitioners have sought relief by way of directions to the respondents to refund full amount collected for the tickets booked, any time for travel.

6. W.P.(C)No.952 of 2020 is filed by Col. Ashok Prehar (Retd.) and another seeking quashing of O.M. dated 16.04.2020 issued by the Ministry of Civil Aviation and also seeking a declaration that the denial of refund  by the third respondent – Air India Ltd. – for tickets booked by them on 18.12.2019 to travel to United States of America on 08.05.2020 with a return ticket to India on 05.06.2020, as illegal, arbitrary and contrary to CARs.  They seek directions to refund the full amount of Rs.1,66,434/­ collected by respondent no.3 for the tickets booked by them on 18.12.2019. In this writ petition it is the case of the petitioners that, petitioner no.1 is a senior citizen who has served in Indian Army for 27 years and retired as a Colonel and the petitioner no.2 is his wife and on 18.12.2019 they have booked tickets to Air India Flight No.AI­173 to travel to San Francisco, United States of America from New Delhi on 08.05.2020 with a return flight AI­102 from New   York   to   New   Delhi   on   05.06.2020   for   an   amount   of Rs.1,66,434/­.   While referring to the advisory issued by the United States of America, by way of Advisory dated 19.03.2020 recommending to avoid any travel and the proceedings issued by the Director General of Civil Aviation, Government of India for banning flights during the lockdown period, it is alleged that in view of cancellation of flights they had no option but to cancel their  tickets   by  seeking   refund   of   the   amount.     In   this   writ petition it is the specific case of the petitioners that the O.M. dated 16.04.2020 issued by the Ministry of Civil Aviation, which directs   all   airlines   to   pay   full   refund   without   levying   any cancellation   charges   for   the   bookings   made   and   payment received only, during the lockdown period from 25.03.2020 to 03.05.2020, as illegal.  It is alleged that the said Memorandum leaves out a majority of passengers including the petitioners who had booked their tickets to travel to United States of America, much earlier to restrictions imposed to control the spread of CORONA virus.  Pleading discrimination for the passengers who had   booked   tickets   during   the   lockdown   period,   and   the passengers   who   had   booked   tickets   earlier,   petitioners   seek quashing of O.M. dated 16.04.2020 by further declaration that denial of legitimate refund to the petitioners by the airlines is patently   unfair   and   also   states   that   the   action   of   the   third respondent   in   offering   ‘Credit   Shell’   instead   of   refund   is unreasonable and unjustified.  It is also pleaded that in view of their age and the pandemic situation in the world, the travel for leisure is likely to remain restricted in the foreseeable future. Petitioners,   while   pleading   that   giving   ‘Credit   Shell’   vouchers without refunding the full fare to the petitioners, as sought by them, runs contrary to CAR, allege that the denial of refund by third respondent amounts to unjust enrichment at the expense of   the   petitioners   and   similarly   placed   persons.     With   the aforesaid allegations, petitioners seek quashing of O.M. dated 16.04.2020,  with  a  consequential  direction  to   refund  the  full amount of Rs.1,66,434/­ collected by the third respondent for the flights booked by them on 18.12.2019.

9. In the affidavit filed on behalf of respondent nos.1 and 2 while denying the various allegations made by the petitioners, they have explained the existing legal  regime with respect to refund   of   fares   and   clarified   the   circumstances   which   led   to issuance   of   O.M.   dated   16.04.2020.     While   referring   to   the meetings   held   by   the   Ministry   of   Civil   Aviation   with   the representatives of Airlines, the affidavit discloses the concerns highlighted during such meetings and indicated the proposed workable solutions keeping in view the interests of passengers as well   as   the   airlines.     The   Ministry   of   Civil   Aviation   after consulting all the stake holders arrived at certain formulations, which were referred to in the affidavit and deals with various situations,   such   as,   for   domestic   airlines   where   tickets   were booked by the passengers directly with the airline; for domestic airlines when the ticket had been booked through a travel agent, by the passenger with the airlines; for international travel when the   ticket   had   been   booked   on   an   Indian   carrier,   when   the booking is for ex­India; and for international travel when the tickets have been booked on a foreign carrier and the booking is ex­India.     The   supplementary   affidavit   filed   on   behalf   of respondent   nos.1   and   2   further   clarified   on   categories   of passengers who are proposed to be covered and clarified the period of booking of tickets and also with regard to the credit shell.   Further additional affidavit is also filed on behalf of the said respondents further clarifying with regard to credit shell proposals as proposed by the Government which were referred to in the earlier affidavits.  Detailed affidavits are filed on behalf of the airlines and other stake holders who are impleaded as party respondents.

17. Sri Sanjay Hegde, learned senior advocate appearing for the Pravasi Legal Cell has submitted that in view of the proposals as mentioned in the affidavit filed by the respondent nos.1 and 2, their grievances are substantially redressed but at the same time he has submitted that for the bookings made for foreign air travel through Indian carriers outside the country, same formulation as proposed by the respondent nos.1 and 2 can be applied.  Sri C.A. Sundaram, learned senior counsel appearing for the Air Passengers Association of India has submitted that whatever the mode they have booked, all passengers are entitled for refund immediately.   It is submitted that the problems faced by the airlines is no ground for not refunding the money which is paid by the passengers.  Sri Harshwardhan Bhende, learned counsel appearing   for the Travel   Agents   Federation of India   has submitted that when the tickets are booked by travel agents by investing their money on behalf of the passengers there is no reason for not issuing credit shell in the name of agents. Sri Pallav Shishodia, learned senior counsel appearing for Indian Association of Tour Operators has contended that, when tickets are booked by agents, there is no reason for not issuing credit shell in the name of agents.  It is further submitted that in case credit shell is not utilised by 31st of March 2021, refund has to come back to the same account of the agent, from which account money is paid for bookings.

19. Though the various contentious issues are raised on both sides   and   at   the   same   time   the   suggestions/formulations   as suggested by respondent nos.1 and 2 in the affidavits filed before this Court are by and large acceptable to the majority of stake holders.  In ordinary course modalities and timelines for refund on   cancellation   of   tickets   are   governed   by,   the   Civil   Aviation Requirements, i.e. CAR dated 22nd May 2008; 06th August 2010 as revised on 27th February 2019, and the said Requirements are issued by the competent authority in exercise of powers under the   provisions   of   Aircrafts   Act,   1934   and   the   Rules   made thereunder.   But at the same time we cannot lose sight of the present situation prevailing in the country and across the globe, i.e. the effect of pandemic COVID­19.  It cannot be disputed that the civil aviation sector, which is one of the important sectors, is seriously affected in view of the ban imposed for operating flights. Added to the same, air passenger traffic has come down heavily and which is gradually being restored.  At this moment any strict enforcement action of the CARs would further restrict/reduce their   operations   and   such   enforcement   action   may   further jeopardise the possibilities of generation of cash by airlines which can   further   adversely   affect/delay   the   refund   cycle.     Strict enforcement of Civil Aviation Requirements at this moment may not yield any meaningful result for any stake holder.  In view of the suggestions and formulations arrived at in the meetings held by respondent nos.1 and 2, which are acceptable to the majority of stake holders, have to be implemented in letter and spirit.  We also feel that such formulations are workable solutions in these peculiar circumstances which are prevailing in the country.  The grievances which are raised on behalf of agents can be taken care by   this   Court   by   issuing   appropriate   directions   wherever bookings are made by them, so as to see that their interest is safeguarded.   Sri Arvind Datar, learned senior counsel, though has argued to extend the timelines for encashment of credit shell at least up to 31st March 2022 or any other shorter period but we are not inclined to accept the same, keeping in mind that the passengers   who,   with   the   hope   of   travel,   have   booked   their tickets by spending their own money.  For these reasons we are not inclined to delve any further on any of the contentions and deem it appropriate to dispose of this batch of cases with the following directions:

1. If a passenger has booked a ticket during the lockdown period (from 25th March, 2020 to 24th May, 2020)   for   travel   during   lockdown   period   and   the airline has received payment for booking of air ticket for travel during the same period, for both domestic and international air travel and the refund is sought by   the   passenger   against   that   booking   being cancelled, the airline shall refund the full amount collected   without   any   cancellation   charges. The refund shall be made within a period of three weeks from the date of cancellation.

2. If the tickets have been booked during the lockdown period through a travel agent for a travel within the lockdown period, in all such cases full refund shall be given by the airlines immediately. On   such   refund,   the   amount   shall   be   passed   on immediately by the agent to the passengers.

3. Passengers who booked tickets at any period of time but for travel after 24th May, 2020 – refund of fares to the passengers covered under this category shall be governed by the provisions of Civil Aviation Requirements (CAR).

4. Even for international travel, when the tickets have   been   booked   on   an   Indian   carrier   and   the booking is ex­India, if the tickets have been booked during   the   lockdown   period   for   travel   within   the lockdown period, immediate refund shall be made.

5. If   the   tickets   are   booked   for   international travel on a foreign carrier and the booking is ex­India during   the   lockdown   period   for   travel   within   the lockdown period, full refund shall be given by the airlines   and   said   amount   shall   be   passed   on immediately   by   the   agent   to   the   passengers, wherever such tickets are booked through agents.  In all   other   cases   airline   shall   refund   the   collected amount to the passenger within a period of three weeks.

6. In all other cases, the airlines shall make all endeavours to refund the collected amount to the passenger within 15 days from today.  If on account of financial distress, any airline / airlines are not able to do so, they shall provide credit shell, equal to the   amount   of   fare   collected,   in   the   name   of passenger when the booking is done either directly by the passenger or through travel agent so as to consume the same on or before 31st March, 2021.  It is open to the passenger either to utilize such credit shell   upto   31st  March,   2021   on   any   route   of   his choice or the passenger can transfer the credit shell to   any   person   including   the   travel   agent   through whom   he   /   she   has   booked   the   ticket   and   the airlines shall honour such a transfer.

6.1. The credit shell issued in the name of the passenger shall be transferable which can be utilized upto   31st  March,   2021   and   the   concerned   airline shall   honour   such   a   transfer   by   devising   a mechanism to facilitate such a transfer.   It is also made clear that such credit shell can be utilized by the   concerned   agent   through   whom   the   ticket   is booked, for third party use.   It is also made clear that even in cases where credit shell is transferred to third party, same is to be utilized only through the agent who has booked the ticket at the first instance.

7. In   cases   where   passengers   have   purchased the   ticket   through   an   agent,   and   credit   shell   is issued in the name of passenger, such credit shell is to be utilized only through the agent who has booked the   ticket.     In   cases   where   tickets   are   booked through agent, credit shell as issued in the name of the passenger which is not utilized by 31st  March, 2021, refund of the fare collected shall be made to the same account from which account amount was received by the airline.

8. In all cases where credit shell is issued there shall be an incentive to compensate the passenger from the date of cancellation upto 30th June, 2020 in which event the credit shell shall be enhanced by 0.5% of the face value (the amount of fare collected) for every month or part thereof between the date of cancellation and 30th June, 2020.   Thereafter the value of the credit shell shall be enhanced by 0.75% of the face value per month upto 31st March, 2021. Further, the second respondent­Directorate, shall ensure strict compliance of the directions referred above, by issuing necessary instructions to the all concerned.

20. With the above directions, these writ petitions are disposed of.