Kerala man sues IRCTC over Rs 1 short refund, wins Rs 3,100 compensation
On receiving ₹1 less, a Kerala passenger sued the Indian Railway Catering and Tourism Corporation (IRCTC) and ended up winning the refund and more in a legal battle at the local consumer commission. The Kasaragod District Consumer Commission ordered the railway ticketing corporation to pay the passenger ₹3,100, along with the original residual amount. The rules that applied to the passenger, who booked and cancelled the ticket in 2024, have now been updated.The claimant cancelled his ticket on August 17, 2024, more than 48 hours before the scheduled journey on August 20, 2024.
He booked an AC three-tier train ticket for ₹553 on August 11. The complaint mentions that IRCTC deducted ₹180 as cancellation charges and 5 per cent GST, which amounted to ₹9. As calculated, the refund amount came up to ₹341; however, IRCTC refunded only ₹340. This left a shortfall of ₹1.The shortfall caused the complainant confusion and mental distress. This incident caused a breach of trust towards India's primary railway organisation.
His demands were ₹1 lakh for confusion, ₹1 lakh for breach of trust, ₹5,000 for litigation costs and the ₹1 shortfall.The commission rejected IRCTC's counter-argument because it was barred by limitation. It was noted that IRCTC did not attempt to justify the ₹1 shortage at the time of the refund. Failing to refund the exact amount was both a deficiency in service and an unfair trade practice.
This created a liability for the organisation to refund the deficiency and pay additional compensation. The order by the commission mentioned, "Just because one rupee is paid less, the said fact really counts and the complainant is entitled to Rs 100 as compensation. Complainant is also eligible for the cost of litigation fixed as Rs 3,000."The complainant's demands were partly granted.
The ₹1 was compensated by paying Rs 100, and additionally, the consumer forum directed IRCTC to pay Rs 3,000 for litigation costs."...complaint is allowed in part opposite party directed to refund Rs 1 with 9% interest from date of cancellation of date of ticket that is 17.08.2024 till realisation and Rs 100 towards compensation for deficiency in service and unfair trade practices and Rs 3000 as cost of litigation to the complainant within 30 days," the commission, chaired by Krishnan K, ordered.New Cancellation Policy of Indian RailwaysIndian Railways has modified its cancellation and refund policy for confirmed tickets, with the revised rules coming into effect in March 2026.
Under the new rules, all cancellation time windows have been increased, giving passengers less flexibility to cancel tickets at the last minute. Earlier, a full refund, after deducting the applicable flat cancellation charge, could be availed if the passenger cancelled tickets more than 48 hours before departure. Now, to get the highest possible refund, tickets must be cancelled more than 72 hours before departure.
Thus, the amount refunded to the Kerala passenger would have differed had the new rules applied to his cancellation.Even the 25% and 50% deduction windows have also changed, moving from 48-12 hours to 72-24 hours and from 12-4 hours to 24-8 hours, respectively. Finally, the no-refund window has doubled from the earlier four hours to eight hours. Fully waitlisted e-tickets are automatically cancelled after chart preparation if all passengers remain waitlisted, subject to applicable clerkage deductions.
One exception is confirmed Tatkal tickets, which generally receive no refund upon cancellation. However, passengers are eligible for a full refund if the Railways cancels the train.Thus, please plan your journeys ahead of time and avoid any last-minute changes to your plans. Indian Railways' revised policy means passengers may receive a lower refund for modifications made closer to their travel dates.You use AI every day.
Now get your AI Quotient. Take the AIQ testGet the latest Lifestyle News and more. Download the TOI app.
