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HOTEL LIABLE FOR VEHICLE THEFT FROM PARKING : SUPREME COURT

In  Taj Mahal Hotel vs United India Insurance Company Ltd. & Ors. , Supreme Court held that when it comes to valet parking, hotel owners can’t not simply use a paper tag stating “parking at owners’ risk” as a way to escape liability. The Supreme Court upheld an order passed by the National Consumer Disputes Redressal Commission (‘National Commission’) to pay compensation of Rs 2.8 lakh to an individual whose Maruti Zen car was stolen in 1998 from its parking area holding that there was deficiency in services rendered by the hotel management. The hotel had argued that the valet parking ticket clearly states that the vehicle will be parked at the guest’s own risk and responsibility and that the management will not be responsible for any loss, theft or damage.  Bench of Justice Mohan Shantanagoudar and Justice Ajay Rastogi held that the    hotel-owner cannot contract out of liability for its negligence or that of its servants in respect of a vehicle of...