Refusal to refund advance payment for a destination wedding

Dear Client

The hotel's refusal to refund the advance cannot be determined solely from the fact that the contract describes the 30% advance as “non-refundable.” The entire contract, including the advance-payment clause, cancellation policy, notice period, and the actual loss suffered by the hotel, must be considered in totality.

Your facts clearly suggest that the cancellation was given about five months or 150 days prior to the event. Since this time period is less than 180 days, the cancellation could fall under the 50% retention slab and not 25%. Hence, the retention of 30% advance could well be consistent with the cancellation policy. It would be advisable to check the exact event date, cancellation date, and wording of the slabs, since the term 'up to 120 days' is vague, and hence an ambiguity in a clause prepared by the hotel can be read against it.

However, according to the Indian contract laws, merely because a clause exists for cancellation in the contract does not necessarily mean that all money is automatically kept irrespective of circumstances. 

It is necessary to send a notice in writing demanding an explanation regarding why it kept the full deposit and stating its actual loss and also confirming whether the rooms and banquet have been let out to someone else. If this resort does not give any reply then, in that case, the proper consumer remedy can be taken depending upon consumer jurisdiction.

I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.