DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KOZHIKODE

PRESENT: Sri. P.C. PAULACHEN, M.Com, LLB : PRESIDENT

Sri.V. BALAKRISHNAN, M Tech, MBA, LL.B, FIE: MEMBER

Wednesday the 26^th day of July 2023

C.C.189/2023

Complainants

1. Usha.P.G,

W/o Dr. Ramakrishnan.E,

19/1530 C, ‘Sree Achutham’,

M.N.Road,  Chalappuram (P.O),

Calicut -673 002.

2. Dr. E Ramakrishnan,

           S/o V.Achuthan,

19/1530 C, ‘Sree Achutham’,

M.N.Road,  Chalappuram (PO),

Calicut -673 002.

(By Adv.Sri. K.K. Krishna Kumar, Smt. Vandana Venugopalan and Smt. Anu Sree C.K)

Opposite Parties

1. M/s Country Club Hospitality and Holidays Ltd,

           Amrutha Castle,

          5-9-16, Saifabad,

          Opposite to Secretariat,

          Hyderabad – 500 016.

2. The Central Processing Officer,

           County Club Central Customer Care,

           Asian Building, Begumpet,

           Hyderabad – 500 016.

3. The Senior Manager,

           The Country Vacations,

           BMT Trade Centre Building,

           Mini Bypass Road Junction,

          Puthiyara, Kozhikode – 673 004.

4. The Manager

           The Country Vacations,

           BMT Trade Centre Building,

           Mini Bypass Road Junction,

           Puthiyara, Kozhikode – 673 004.

ORDER

By Sri. P.C. PAULACHEN – PRESIDENT 

           This is a complaint filed under Section 35 of the Consumer Protection Act, 2019.

2.     The case of the complainant, in brief, is as follows:

The first opposite party is engaged in hospitality services including member exclusive clubbing hubs, holiday destinations, fitness centres and entertainment events.On getting intimation that the first complainant had won a raffle/coupon for free vacation asking her to report at its Kozhikode office for availing the benefits on 19/08/2022, the complainants reached there.They were made to fill up certain forms and were told about the benefits of being a member of the first opposite party company club.The opposite parties also explained that on that day alone there was an offer price for the people who had won the raffle to get the membership of the club for Rs.2,00,000/- instead of the actual membership cost of Rs.7,00,000/-.When the complainants informed that they were not carrying any money with them, the opposite parties 3 and 4 insisted that in case the complainant signed the necessary papers and agreement for membership on that day itself, they would come and collect the amount.Accordingly, they were persuaded to sign the agreement of membership. The opposite parties 3 and 4 followed the complainants to their residence to make sure that the amount of Rs.2,00,000/- was given to them.They also made the first complainant part with her debit and credit card for facilitating the payment.They allowed the 3^rd opposite party to make payment of Rs.50,000/- each from the first complainant’s debit and credit card on EMI basis.The 3^rd opposite party enticed the 2^nd complainant to part with a cash cheque of Rs.1,00,000/- as well, which was encashed on the same day.Thus after receiving Rs.2,00,000/- as the offer price of country club membership, the opposite parties handed over some papers and agreement of membership to the complainants.

3.     When the children of the complainants were told about the membership, they stated that the 1^st opposite party had very bad reviews and that many people had been cheated by the enticing offers made by them.  The complainants also verified the reviews and was convinced about what their children had disclosed about the company.  On 20/08/2022 itself the complainants visited the office of the first opposite party and informed that they were not interested in continuing the membership and demanded return of the amount of Rs.2,00,000/-.  But the 1st opposite party told that the complainants would have to initiate the process of cancellation of membership by informing the 2nd opposite party.  Accordingly, the 2^nd opposite party was informed about their intention to discontinue their membership and cancel the same and to get return of the amount.  Then they were told to wait for the cooling of period of 120 days as stipulated in the agreement and that only after the expiry of the same, they would get refund.   An EMI of Rs.4,268/- was also again auto debited from the account of the first complainant on 04/10/2022, towards the credit card transaction done in favour of the opposite parties.  Apart from that, the next installment of Rs.4151.10 has been again auto debited on 06/03/2023.  The opposite parties have no manner of right to withhold the amount paid by them.  The act of the opposite parties amounts to unfair trade practice and deficiency of service.  On 19/10/2022 the complainants issued a lawyer notice to the opposite parties, but it evoked no response.  The amount was not returned.  The opposite parties are bound to repay the amount of Rs.2,00,000/- with interest along with compensation of Rs.2,00,000/-for the mental agony and inconvenience suffered.  Hence the complaint.

4.     The opposite parties failed to appear before this Commission despite service of notice.  Hence they were set ex-parte.

5. The points that arise for determination in this complaint are:

1. Whether there was any unfair trade practice or deficiency of service on the part of the opposite parties, as alleged?
2. Reliefs and costs.

6. The second opposite party was examined as PW1 and Exts A1 to A7 were marked.

7. Heard.

8. Point No.1:- The complainants  have approached this commission alleging unfair trade practice and deficiency of service on the part of the opposite parties.  The prayer is for refund of the amount of Rs.2,00,000/- collected  and retained by the opposite parties along with compensation of Rs.2,00,000/- for the mental agony and inconvenience caused.

9. PW1 has filed proof affidavit in terms of the averments in the complaint and in support of the claim. Ext A1 is the agreement for sale of membership, Ext A2 is the email communication dated 26/08/2022, Ext A3 is the copy of the cancellation request dated 25/08/2022, Ext A4 is the email communication dated 27/08/2022, Ext A5 is the acknowledgement for having received the cancellation request, Ext A6 is the email communication dated 31/08/2022 and Ext A7 is the copy of the lawyer notice dated 19/10/2022 along with postal receipts and acknowledgement cards.

10. The evidence of PW1 stands unchallenged. The opposite parties have not turned up to file version.They have not produced any evidence to disprove the averments in the complaint or to rebut the veracity of the documents produced and marked on the side of the complainants.There is no contra evidence to disprove the claim of the complainants.The case of the complainants stands proved through the testimony of PW1 and Ext A1 to A7 documents.The opposite parties have no manner of right to withhold the amount paid to them by the complainant, after cancellation of the membership and the act of the opposite parties in not doing so constitutes unfair trade practice and deficiency of service.The opposite parties are bound to refund the amount to the complainants.Undoubtedly, the act of the opposite parties has resulted in intense mental agony and inconvenience to the complainants, who are senior citizens, for which, they are entitled to be compensated adequately.Considering the entire facts and circumstances, we are of the view that a sum of Rs. 25,000/- will be reasonable compensation in this case.The complainants are also entitled to get Rs.3,500/- as cost of the proceedings.

11. Point No.2 :  In the light of the finding on the above point, the complaint is disposed of as follows:

1. C.C. 189/2023 is allowed in part.  
2. The opposite parties are hereby directed to refund a sum of Rs.2,00,000/- (Rupees Two Lakh only) to the complainants with interest at the rate of 6% per annum from the date of the complaint, i.e, 18/05/2023 till actual payment.
3. The opposite parties are directed to pay a sum of Rs.25,000/-(Rupees twenty five thousand only) to the complainants as compensation for the mental agony, inconvenience and hardship suffered.
4. The opposite parties are directed to pay a sum of Rs.3,500/- (Rupees Three thousand five hundred only) as cost of the proceedings to the complainants.
5. The order shall be complied with within 30 days of the receipt of copy of this order.

Pronounced in open Commission on this the 26^th day of July 2023.

Date of Filing: 18-05-2023.

                Sd/-                                                                                                                                      Sd/-

       PRESIDENT                                                                                                                          MEMBER

                                                           APPENDIX

Exhibits for the Complainant :

Ext A1 - Agreement for sale of membership.

Ext A2 - Email communication dated 26/08/2022.

Ext A3 - Copy of the cancellation request dated 25/08/2022.

Ext A4 - Email communication dated 27/08/2022.

Ext A5 - Acknowledgement for having received the cancellation request.

Ext A6 - Email communication dated 31/08/2022.

Ext A7 - Copy of the lawyer notice dated 19/10/2022 along with postal receipts and acknowledgement cards.

Exhibits for the Opposite Party

Nil

Witnesses for the Complainant

PW1 -Dr. Ramakrishnan.E. (2^nd Complainant)

Witnesses for the opposite parties

Nil

            Sd/-                                                                                                                                               Sd/-

   PRESIDENT                                                                                                                                     MEMBER

True Copy,

Sd/-

Assistant Registrar