"A botched haircut at a 5-star hotel salon led to a ₹2 Crore compensation award. The Supreme Court stepped in."
New Delhi, April 2018. Aashna Roy, an executive and aspiring hair model, visited the salon at ITC Maurya before a major professional interview. What followed sparked an 8-year battle in India’s apex court.
The parties who faced off in India’s most high-profile consumer law dispute.
The customer requested a 4-inch trim from the bottom. Instead, the stylist chopped her hair to just 1 inch from the scalp. When the salon offered a corrective keratin treatment, excess chemicals burned her scalp, causing permanent follicle damage.
The National Consumer Commission (NCDRC) ruled that the luxury hotel committed gross Deficiency in Service, awarding an unprecedented ₹2,00,00,000 in compensation.
ITC appealed to the Supreme Court, arguing that the ₹2 Crore award was arbitrary and unsupported by any tax returns, modeling contracts, or financial records.
deficiency of service is established. But how should an apex court quantify damages when the consumer cannot produce past tax returns or contracts?
Balance consumer accountability against the rule that compensation must reflect proven economic loss.
A Supreme Court bench of Justices Aniruddha Bose and Vikram Nath held that while ITC was unquestionably guilty of Deficiency in Service, compensation must be based on quantifiable material evidence. The apex court held that consumer courts cannot award arbitrary windfall damages without examining tax returns and actual financial loss. The award was reduced to ₹25 Lakhs.
A botched haircut at a 5-star hotel salon led to a ₹2 Crore compensation award. The Supreme Court stepped in.
NCDRC awards ₹2 Crore compensation for deficient salon haircut.
Supreme Court remands matter, holding compensation must be founded on material evidence of actual loss.
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