Buying air tickets not a commercial transaction to attract Commercial Courts Act: Delhi High Court

The Delhi High Court recently held that merely buying air tickets does not create a commercial transaction and issues related to refund do not amount to commercial disputes under the Commercial Courts Act, 2015 [Chand Mehra & Anr v. British Airways PLC]. 

A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela said that while buying a ticket creates a contract of carriage, it lacks elements of trade, commerce or business. 

“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. To constitute a dispute to be a commercial dispute arising out of an agreement which contains a provision of services, the agreement or transaction is to necessarily contain an element of commerce or trade or business,” the Court observed. 

The High Court rendered these findings while rejecting an appeal by two passengers against British Airways. 

They had booked business-class tickets worth ₹5.09 lakh for a Delhi–New York flight in June 2023. After a medical emergency forced cancellation, they sought a full refund. The airline instead deducted over ₹3 lakh as cancellation charges and issued a future travel voucher.

The commercial court had returned the plaint, holding the dispute outside its jurisdiction. 

Upholding that decision, the High Court said that once the appellants bought the air ticket, a contract was entered into. However, merely because the said contract came into existence, it cannot be said that any commercial transaction took place between the parties. The contract only provides that on buying the ticket, the defendant will be obligated to take the passenger to his or her destination, the Court stressed. 

“Commercial Courts Act has been enacted for a specific purpose of creating judicial forum to provide for speedy disposal of high value commercial dispute. The crucial aspect, thus, for instituting a suit under the Commercial Courts Act is commercial or business or trading activity and any suit of high valuation minus these elements cannot be instituted in the Commercial Courts Act,” the Court stated. 

Ultimately, it rejected the appeal. 

Advocates Shaini Bhardwaj, Aditya Sharma, Avichal Mishra, Vedic Thukral and Rukhsar appeared for the appellants.

British Airways was represented through Advocate Ritu Singh Mann.

[Read Judgment]