Date of Filing:10-01-2019
Date of Order:14-10-2019
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM – I, HYDERABAD
P r e s e n t
HON’BLE Sri P.VIJENDER, B.Sc. L.L.B. PRESIDENT
HON’BLE Smt. D.NIRMALA, B.Com., LLB., MEMBER
Monday, the 14th day of October, 2019
C.C.No.29 /2018
Between
B.Sudeep Reddy, S/o.B.Guruva Reddy,
Aged about 39 years, Occ: Employee,
R/o.1st floor,MSR Block,
MCE Publishing, Krishe sapphire
Madhapur, Hyderabad – 500081 ……Complainant
And
- M/s. Country Club Vacations,
Office at: Asian Building, 4th floor,
Country Club, Begumpet
Secunderabad – 500016
- M/s. Country Club Vacations,
A Division of Country Club Hospitality & Holidays Ltd.,
Office at: Amrutha Castle,
5-9-16, Saifabad, Hyderabad – 500063 ….Opposite Parties
Counsel for the complainant : Mr.G.V.S.Prasad
Counsel for the opposite Parties : Mr. V.Srinivasa Rao
O R D E R
(By Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
This complaint has been preferred under Section 12 of C.P. Act 1986 alleging that refusal to refund the amount collected from the complainant towards the part of sale consideration of the plot and towards membership agreement amounts to unfair trade practice and deficiency of service, hence a direction to refund the said amount with interest at 18% P.A and to award a compensation of Rs.2,00,000/- for causing mental agony and other inconvenience to the complainant by refusing to refund the amount and cost of this complaint at Rs.10,000/-
- The averments of the complaint in brief are that the complainant received a phone call from the executive of opposite parties informing that he won a prize in the lottery conducted by opposite parties and was invited to collect the prize at its Begumpet office. Accordingly complainant went there along with family and at the office executives of opposite parties explained about the facilities in the club in the event of obtaining membership and it includes concessional air travel, accommodation at resorts and hotels, food and overseas trips etc. He was also offered a house plot fully developed at a cost of Rs.1,95,000/- and opposite parties will by back it after two years at the double the amount. The complainant was induced and lured by the executives hence he agreed to accept the membership and paid a sum of Rs.1,95,000/- on 3-4-2017. Out of it Rs.1,40,000- was towards the plot cost and Rs.55,000- towards club membership fee and he was made to sign on the membership agreement and other related documents.
Thereafter the complainant planned for a holiday trip and enquired with the opposite parties for availing travel and hotel arrangements at concessional rate. Then he was informed that he has to pay total cost and no discount either for the travel or in the accommodation can be provided by the opposite parties. This is against the representations made at the time of his enrollment as a member. Having heard the same complainant was shocked and visited the site of the plot and noticed no development at all as offered at the time of obtaining signature on membership form. There are no approach road, no marking of the plots etc. The enquiries made by the complainant at the site revealed that the opposite parties collected exorbitant amount as the prevailing market rate was very much less than the amount collected from the complainant. Thereafter the complainant visited the office of opposite parties for several times and sent the mails asking the opposite parties to cancel the membership as well as agreement for plot and refund the amount paid by him. But there was no response. The complainant learnt that the opposite parties terminated the services of executives and lodged a police complaint against them. This itself indicates the deceptive nature adopted by the executives of opposite parties for convincing the people and collecting the huge amount with a false promises of providing a fully developed house plot and providing concessional travel fare, in food and accommodation in various places and it amounts to deficiency of service and unfair trade practice. Hence the present complaint for the above mentioned reliefs.
- Opposite parties filed a detailed written version admitting about collecting of Rs.1,95,000/-towards part of house plot admeasuring 150 S.yards and towards membership fee to the club but denied the rest of the complainant’s version. The defence set out in the written version is that there was no inducement or false promises to the complainant by an executives of opposite parties. The complainant himself got enrolled as a premier member and signed the membership agreement on 3-4-2017 and paid a sum of Rs.55,000/- towards membership fee and he was allotted a plot for total sale consideration of Rs.1,90,000/- out of which he paid only Rs.1,40,000/- and he promised to pay balance amount of Rs.59,000/- towards registration expenses. The complainant as a member will be entitled membership in the club for life time on payment of enrollment charges. He shall have access to events, entertainments and amusement facilities. He shall be entitled free usage of CC fitness center, swimming pool and other services available at the club. For the complainant and his family members are also entitled to stay 3 nights and 4 days stay within the country and same is valid for one year from the date of agreement. Complainant is entitled to avail the benefits provided by the club and he shall comply with the terms and conditions of the membership agreement executed by him. As per the membership agreement executed by the complainant the amount paid towards membership fee is non refundable and complainant having verified the terms and conditions of membership complainant has signed the membership agreement and there was no false presentation or inducement in signing the agreement by the complainant.
Membership agreement executed by the complainant on 3-4-2017 is a concluded contract between the parties and the terms and conditions are it binding. In view of the clause membership fee is non refundable the complainant is not entitled to seek refund the same. The complainant was never invited and he was never informed that in the lottery conducted by the opposite parties he won a prize. The complainant was invited over a call to attend a non obligatory presentation in order to experience and avail the holiday offered by the opposite parties through a gift voucher. After a small brief telephonic explanation of the usage and terms and conditions of receiving the gift voucher for which the complainant had shown interest in the same and duly fixed up an appointment with the official of opposite party and attended the meeting at its office. During the presentation all the prospects attending the presentation were explained the redemption of the gift voucher where one gets a discounted holiday for up to week by paying a normal charges. The persons who attended such presentation need not necessary enroll for the membership at club and he can walk away either taking the gift voucher or denying the same.
At the time of presentation the opposite parties have detailed explained about the benefits and the terms and conditions of membership agreement and fee payable. Complainant having signed on the purchase agreement, failed to pay balance amount of Rs.59,000/- towards registration fee and development and incidental charges. Complainant entered into MOU with the opposite party on 1-6-2017 agreeing to pay Rs.59,000/- towards development charges, stamp duty on the registration charges but failed to pay the same . Clause -5 of MOU in the event of failure to pay the total sale consideration within stipulated time any part of the sale consideration paid under the MOU shall be fully forfeited without any notice and MOU is treated as the null and void. Since the complainant has not paid total sale consideration of Rs.1,99,000/- the development of the plot could not take place. It is further mentioned in the clause 5 of the application cum letter of intent towards purchase of plot that there shall be a Cooling off period for seven days from the date of execution of application cum letter of intent. If the proposed buyer is not satisfied with the offer of sale of the plot he could rescind or revoke the agreement and the amount paid shall be refunded after deducting Rs.5,000/- or 10% of the amount paid at the time of booking. But the complainant did not invoke cooling period and rescind or revoke the agreement. Hence it is not opon for him now to seek refund of the part of the amount towards sale consideration for the plot. Similarly complainant also failed to pay enrollment charges of Rs.6,000/- which he is liable to pay irrespective of usage of facilities offered by the club. Hence the complainant is not entitled any of the reliefs and the complaint is liable to be dismissed.
In the enquiry the complainant got filed his evidence affidavit reiterating the material facts of the complaint and got exhibited Four (4) documents to support the oral evidence. Similarly for the Opposite Party evidence affidavit of one Sri Sridhar stated to be Assistant Manager is got filed and the substance of the same is in line with the defence taken in the written version. Eight (8) documents are exhibited for the opposite parties . Both sides have filed written arguments and supplemented the same with the oral submissions.
On a consideration of material available on record the following points have emerged for consideration .
- Whether the complainant could make out a case of either unfair trade practice or deficiency of service on the part of the opposite party?
- Whether the complainant is entitled for the amounts claimed in the complaint?
- To what relief?
Point No.1: The specific case of the complainant is he received a phone call from the opposite party informing that he won a prize in a lottery conducted by opposite party and invited to come to opposite party situate at Begumpet to collect the prize and after going there he was made to sit in the meeting for the presentation offered by the executive of opposite party explained benefits and event by obtaining membership in the opposite party club the residential plot of 150Sqyards in the venture being developed by opposite party. The opposite party is denying about the informing the complainant that he won a prize. The specific stand of opposite party is the complainant was invited by over a phone call to attend a non obligatory presentation in order to experience and avail a Holiday offered by it through a Gift voucher. So it is evident that the complainant on own did not visit the opposite party to hear the presentation made by the executives of opposite party. The opposite party is also admitted in the written version that during the course of presentation upon enquiries made further the opposite parties given detailed presentation of the benefits as per the terms and conditions of the membership agreement and a lucky draw and winner in the draw takes the membership and walks out with a holiday voucher worth of Rs.15,000/-. Thus the complainant version that he received a phone call from the executive of opposite party and in pursuance of an invitation on the phone call he was made an attend presentation by executive of opposite party at Begumpet is admitted. There is no reason to disbelieve the complainant’s version that in the presentation the executive of opposite parties have explained that the house plots offered by the opposite party for total sum of Rs.1,95,000/- fully developed will be delivered then he paid Rs.1,40,000/- . At the same time he was induced pay Rs.55,000/- towards membership fee in the club as he was offered concession in the travel fare as well as accommodation in holiday trips. In the light of it, it can be safely said that obtaining of membership with opposite party club and accepting the offer of sale of house plot by the complainant was not voluntarily. Complainant specifically alleged that when he planned a trip he enquired with the opposite parties about the travel and accommodation then he was informed that no such facility is available with the opposite party hence he was shocked to hear it as it was contrary to the impression given at the time of presentation on the date of signing of membership agreement / MOU. Complainant version that he visited the site of the plot offered to him and noticed that there was no marking of plots and approach road except brazen land. This specific version of complainant is not being denied by the opposite party either in the written version or evidence affidavit filed for it. So it is crystal clear that the opposite party collected Rs.1,40,000/- towards cost of the plot without any approval of layout and without developing the land as a plotted area, demarcating of each and every plot. If really there was an approval for layout for the sale of the plot the opposite party certainly would have filed the proceedings relating to sanction of layout by competent authority. Opposite party filed only a copy of prepared lay out but not an approved layout. Thus the collecting the amount towards sale consideration with a false presentation that a fully developed plot with sanctioned layout amounts to unfair trade practice. Similarly denying for the concession in the travel fare as well as accommodation in trips having promised the same at the time of enrollment amounts to deficiency of service. Thus the complainant has established unfair trade practice and deficiency of service on the part of the opposite parties. Accordingly point is answered.
Point No.2: In view of the above findings the complainant is entitled to seek refund of the amount and compensation for causing mental agony to him by the opposite parties.
Point No.3: In the result, the complaint is partly allowed directing the opposite parties
- To refund the amount of Rs.1,95,000/- with interest at 18% P.A from 3-4-2017 to the date of payment.
- Opposite parties further directed to pay a sum of Rs.1,00,000/- as compensation to the complainant for causing mental agony and other inconvenience to him and also to pay Rs.10,000/- towards cost of this complaint.
Time for compliance : 30 days from the date of service of this order.
Dictated to steno, transcribed and typed by her, pronounced by us on this the 14th day of October , 2019.
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Exs. filed on behalf of the Complainant:
Ex.A1- letter of opposite party dated 14-6-2017
Ex.A2- receipt issued by opposite party dt.10/4/2017
Ex.A3- Memorandum of understanding dt.1-6-2017
Ex.A4- Purchase agreement dt.3/4/2017
Exs. filed on behalf of the Opposite parties
Ex.B1- membership agreement
Ex.B2- application cum letter of intent towards purchase of plot at project known as Sagar Sundarvan
Ex.B3- Memorandum of Understanding
Ex.B4- letter sent by the company for the balance amount dated 27-12-2017
Ex.B5- plot layout
Ex.B6- location map
Ex.B7- a few facts about the concept
Ex.B8- welcome letter
MEMBER PRESIDENT
