Date of Filing: 10.01.2018
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
ON THIS THE MONDAY THE 14th DAY OF OCTOBER, 2019
C.C.No. 30 / 2018
Between
Mrs. K.Shireesha,
W/o .G. Shasidhar Reddy, Aged about 29 years,
Occ: Employee, R/o. 1st Floor, MSR Block,
MCE Publishing, Krishe Sapphire,
Madhapur, Hyderabad – 500 081. ……Complainant
And
- M/s. Country Club Vacations,
Office at Asian Building, 4th Floor,
Country club, Begumpet,
Secunderabad – 500 016.
- M/s. Country Club Vacations,
A Division of Country Club Hopitality & Holidays Ltd.,
Office at : Amrutha Castle,
5-9-16, Saifabad, Hyderabad – 500 063. ….Opposite Parties
Counsel for the complainant : M/s G V S Prasad Rao & Associates.
Counsel for the Opposite Parties : Mr V.Sreenivasa Rao
O R D E R
(By Sri. Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
1) This complaint has been preferred under Section 12 of Consumer Protection Act, 1986 alleging that refusal to refund the amount collected by the opposite party towards cost of the plot and membership amounts to unfair trade practice . Hence a direction to the opposite party to refund the said amount with interest at 18% p.a. from the date of collecting the amount to the date of payment and award a compensation of Rs.2,00,000/- for causing mental agony by the opposite party refusing to refund the same and cost of complaint at Rs.10,000/-
2) The complaint averments in brief are that :
The complainant received a phone call from the Opposite party
Informing her that she won a prize in a lottery conducted by Opposite party and was invited to collect the same at the office situate at Begumpet. Hence complainant went to office of opposite party where she was told about the opposite party club membership and that she will be entitled for several concessions of air travel, hotel/resorts accommodation, food and overseas trips etc. She was further informed that the membership fee is linked to the persons who purchases a plot in the venture of the opposite party fully developed with market potentiality and opposite party will buy back the same within one or two years at double the rate. Because of said presentation the complainant agreed to take membership and purchase the plot and paid Rs.1,95,000/- on 3.4.2017. Out of it Rs.1,40,000/- was towards cost of the plot and Rs.55,000/- towards club membership fee. The complainant was promised to adjust Rs.55,000/- towards cost of the plot and facilities in the club can be used with immediate effect.
Thereafter the complainant planned holiday trip and made enquiries with the opposite party to avail travel and accommodation concessions. Then she was informed that she has to pay travel and accommodation in full and there won’t be any discounts which is contrary to the promises made at the time of collecting of amounts from her towards membership fee and cost of the plot. Thereafter complainant visited the site where she was promised for a fully developed plot by Opposite party. At the site the complainant did not see any development as there was no markings of plot numbers laying of roads and other infrastructural developments. She further learnt from her enquiries that the amount collected from her towards cost of the plot is much more than the prevailing rate at the area. Hence she decided to cancel the membership fee as well as offer of purchase of plot. She visited the opposite party several times and sent mails asking to cancel the both plot agreement and club membership. But there was no response. Hence the present complaint.
Opposite party filed written version admitting collecting of Rs.1,95,000/- from the complainant towards part of sale consideration for the plot and club membership fee but denied rest of the complainant’s version. The defense of the opposite party in the written version is that complainant was never invited informing that she won a prize in the lottery and to collect it she has to come to the office of opposite party. However complainant was invited over a call to obtain nonobligatory presentation to experience and avail holiday offer by opposite party and house plot in its venture. The complainant after mails and telephonic explanation had shown interest and then got fixed an appointment with the officials of the opposite party and attended meeting at the office of opposite party. During the presentation she explained the redemption of gift voucher where one gets a discounted holiday for a week by paying normal charges. The complainant after such presentation has got enrolled for club membership and signed the agreement dated 25.3.2017 and paid a sum of Rs.55,000/- as membership fee. The complainant allotted a plot for a total sale consideration of Rs.1,99,000/- and she paid a sum of Rs.1,40,000/- and balance amount of Rs.59,000/- was payable by her towards registration and other expenses. The club membership is valid for lifetime and renewal on payment of annual maintenance charges. The complainant as a member has access to events and entertainment facilities. She is also entitled vacation benefits of 3(three) nights and (4) four days within India valid for one year from the date of agreement subject to payment of utility charges.
As per the terms of membership agreement the amount paid towards membership is non-refundable. Since complainant signed the membership agreement after going through entire terms and conditions of the membership is not entitled to seek refund of the amount paid by her. The complainant failed to pay balance amount of Rs.59,000/- towards registration fee for plot development , stamp duty and incidental charges for registration of plot.
The complainant did not invoke membership and purchase agreement of plot within 10days of signing of the membership agreement and by suppressing the same filed the present complaint. Clause 5 of MOU says in the event of failure to pay total sale consideration within the stipulated time sale consideration paid shall be fully forfeited without a prior notice. Since the complainant has not paid total sale consideration there was no development of the lay out . Complainant also failed to pay annual maintenance charges as agreed. Hence she is not entitled for the refund of the amount and other claims made in the complaint.
4) In the enquiry the complainant got filed her evidence affidavit reiterating material facts of the complaint, and five (5) documents are exhibited to support her evidence. For the opposite parties evidence affidavit of its Asst. Manager Sri C.M.Sridhar is got filed and the substance of the same is in line with the defense set out in the written version and eight ( 8) documents are exhibited to support the same.. Both sides filed written arguments.
5) On a consideration of the material brought on the record the following points have emerged for consideration :-
1. Whether the complainant could make out a case of unfair trade practice and deficiency of service on the part of opposite parties?
2. Whether the complainant is entitled for the amounts claimed in the complaint?
3. To what relief?
6) Point No.1: The specific case of complainant is she received a phone call from opposite party informing her that she won a prize in the lottery conducted by opposite party and she was requested to visit the office of opposite party to collect it. Believing the same she visited the opposite party office where false presentations were made and induced her to obtain membership agreement to purchase a plot. Opposite party in the written version itself has stated that after brief telephonic conversation complainant was invited to the office of opposite party of her presence for presentation. So it is evident that the complainant has not visited the opposite party office on her own and she was made to visit because of inter action containing the benefits in the event of becoming a member in the club which is linked to purchase of the plot.
The specific case of the complainant is after she made plan for holiday trip she approached the opposite party to avail the benefits offered in the event of taking membership in the club. But after going there she was informed that she has to pay total cost and the opposite party cannot provide any concession for travel or food or accommodation. Then she was realized of the all promises and presentations made at the time of signing the membership agreement are false. Opposite party has not denied either in the written version or in evidence affidavit filed for it about the approach of the complainant after she planned a holiday trip. Hence the complainant version of this aspect has to be believed.
The opposite party in his written version itself as stated that since the complainant has not paid balance amount of Rs.59,000/- there was no question of development of the plot. Opposite party has not denied complainant’s version that at the site there was no making of the pots laying of the roads and other infrastructural facilities. This itself evidences that the opposite party made false presentation with regard to lay out and obtained her signatures on the purchase agreement and other related documents. So it is evident that the opposite party without layout approval from the competent authority offered to sell housing plot to the complainant and collecting huge amount of Rs.1,40,000/- and it amounts to unfair trade practice. Admittedly even as on to day complainant has not availed any of the facilities in the Opposite party Club and when opposite party refused to provide any concession either to travel or accommodation for her holiday trip she is seeking to refund of the amount paid towards membership. The Opposite party under the guise of Clause relating to refund of the amount cannot refuse to refund the amount because complainant has not availed any service from the opposite party even as on to day. Refusal to refund the amount collected towards membership fee without providing any facility also amounts to unfair trade practice. Accordingly the point is answered in favour of the complainant.
7) Point No.2:- In view of the findings of this Form the opposite party is liable to refund the entire amount of Rs.1,95,000/- with interest at 18% p.a. from 3.4-2017 to the date of payment and also liable to pay compensation to the complainant. Accordingly the point is answered in favour of the complainant.
8) PointNo.3:- In the result the complaint is allowed in part directing the opposite parties :
1. To refund an amount of Rs.1,95,000/- with interest at 18% p.a., from 3.4.2017 to the date of payment.
2. To pay Rs.1,00,000/- towards compensation to the complainant for causing mental agony and inconvenience by refusing to refund the amount collected from her.
3. To pay a sum of Rs.10,000/- towards costs of this complaint.
Time granted for compliance is thirty days from service of this order.
Dictated to steno transcribed and typed by her and pronounced by us on this the 14th day of October, 2019.
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
WITNESS EXAMINED
NIL
Exhibits filed on behalf of the Complainant:
Ex.A1 - Copy of letter from the opposite party
Ex.A2 – Copy of .Purchase agreement for country club premium membership
Ex.A3 – Copy of complaint against country vacations and country club services,
Hyderabad
Ex.A4 – Copy of letter to the opposite party dt.28.10.2017
Ex.A5 – Copy of receipt dt.30.3.2017.
Exhibits filed on behalf of the Opposite parties:
Ex.B1 – Copy of .Purchase agreement for country club premium membership
Ex.B2 - Copy of application cum letter of intent towards purchase of plot at
project known as Sagar Sundarvan
Ex.B3 – Copy of Memorandum of Understanding
Ex.B4 – Copy of letter to the complainant Dt.27.12.2017
Ex.B5- Copy of lay out
Ex.B6 – Copy of route plan
Ex.B7 – A few facts about the concept
Ex.B8 - Copy of letter to the complainant
MEMBER PRESIDENT
