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Hotel liable for vehicle theft from parking; Supreme Court rules

R Sinduja

News Editor

The Supreme Court has ruled that a hotel cannot take the cover of the 'owner's risk' clause on parking tokens to deny compensation to its guests for theft or damage to their vehicles once keys are handed over to the valet. The apex court said when the hotel actively undertakes to park the vehicle for the owner, keep it in safe custody and return it; it would be liable to return the vehicle in the condition in which it was given.