Rejection of Section 79 IT Act Intermediary Immunity for Online Hotel & Stay Booking Portals
Parties: Ibibo Group Private Limited (Goibibo) v. Sanjeev Kumar & Anr.
A consumer booked a 4-night hotel accommodation through Goibibo for ₹22,400. Upon arrival at the destination hotel late in the evening, the front desk denied check-in, stating that Goibibo had failed to transmit the reservation or remit payment. Goibibo refused an immediate full refund and offered only a nominal ₹1,500 goodwill credit, arguing that as a mere electronic intermediary under Section 79 of the Information Technology Act, 2000, it bore no liability for the independent hotelier's actions.
The State Commission dismissed Goibibo's appeal, holding that an online travel portal that collects booking fees directly, issues confirmation vouchers on its own letterhead, and deducts commercial commissions is a primary contractual service provider. Safe-harbour intermediary immunity does not protect commercial aggregators from deficiency in service under Section 2(11) of the Consumer Protection Act, 2019. Goibibo was ordered to refund the entire tariff with 9% penal interest and punitive damages.