In a landmark verdict, the Supreme Court has held that hotels cannot deny compensation under the garb of ‘owner’s risk’ clause to its guest or visitors for theft of vehicle parked through its staff or valet.
The top court has held that the burden of proof lies on the hotel to explain that any loss or damage caused to the vehicles parked was not on account of its negligence or want of care.
It said valet parking at the hotel is unlike parking facility where it is the owner’s responsibility to find a suitable parking spot, park the vehicle correctly, return, and take out the vehicle upon display of the parking token/slip.
A bench of justices M M Shantanagoudar and Ajay Rastogi held, ‘Once possession of the vehicle is handed to the hotel staff or valet, there is an implied contractual obligation to return the vehicle in a safe condition upon the direction of the owner’.
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