India, Feb. 12 -- The Supreme Court has slashed the compensation from Rs 2 crore to Rs 25 lakh, awarded to a woman for a "faulty haircut" at a luxury hotel salon.

A bench comprising Justices Rajesh Bindal and Manmohan, in a judgement delivered on February 6, held that while "deficiency in service" was established, compensation in consumer disputes must be based on "material evidence" and not the "mere asking" or "whims and fancies" of the complainant.

"The damages cannot be awarded merely on presumptions or whims and fancies of the complainant. To make out a case for award of damages, especially when the claim is to the tune of crores of rupees, some trustworthy and reliable evidence has to be led," Justice Bindal, who authored the 34-p...