This complaint coming up before us for hearing on 15-11-11 in the presence of complainant and of Sri P. V. Bhaskar, advocate for opposite party, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following:
O R D E R
PER SMT.T.SUNEETHA, LADY MEMBER:
The complainant filed this complaint under section 12 of Consumer Protection Act seeking directions on the opposite party to refund the membership fee of Rs.46,000/- along with interest @12% p.a., from the date of joining i.e., 05-12-09 to 31-05-11 amounting to Rs.8,218/-.
2. In brief the averments of the complaint are these:
The opposite party’s Guntur branch marketing teem as part of the promotional campaign invited some couples by making phone calls to convince them to join as members to avail accommodation at their hotels and resorts across the country.
3. The complainant joined as member on 05-12-09 in five years scheme by paying Rs.46,000/- and agreed to pay RS.4,000/- as annual maintenance charge every year. Later the complainant received the membership certificate bearing No.23/0288 from the head office stating that his membership ends by 2013. The complainant asked opposite party about the same and they replied that the count of years will be like that. But the complainant can avail accommodation five times (5x 7days) during that period. At the time of joining they promised orally that a gift of micro woven worth of Rs.3,000/- will be sent to the complainant through courier along with certificate. But the opposite party had not sent. The complainant made three requests to accommodate in Amrutha Castle, Hyderabad in May, 2010 to stay for four days in last week of June, 2010 in 2nd week of July, 2010 to stay of 4 days from 9th to 12th September, 2010 and again in September, 2010 to say for four days from 8th to 11th December, 2010. Guntur branch of opposite party was kept closed during October, 2010. The complaint contacted Hyderabad office of opposite party to book accommodation, but the opposite party had not shown enough interest in considering the complaint’s request and forced the complainant to pay the annual maintenance charges amounting to Rs.4,000/-. The complainant being vexed with all these experiences decided to cancel his membership and accordingly sent letters to opposite party requesting them to cancel membership and refund the fee collected. But no response from the opposite party. So many complaints were lodged in the internet about the fraudulent and unethical practices of the opposite party. Hence the complaint.
4. The opposite party filed its version and the contents in brief are hereunder:
The complainant has suppressed the material facts and circumstances of the case and has made a fanciful claim. The complainant has not furnished the particulars of the payment of the annual maintenance charges and unless the annual maintenance charges are paid the membership will not be alive and the member will not be entitled to seek the provision of accommodation by the opposite party. It is made clear in the purchase agreement that the rights exists for 5 consecutive years. The purchaser shall have to pay the annual management charges for each year and for availing the facility. The non payment of annual management charges results in the cancellation of the defaulting members point’s rights and disentitled him to any rights against the opposite party. The opposite party is not liable to take into consideration of any requisitions by the complainant. The promised allegedly made orally of the gift of micro woven worth Rs.3,000/- is not true and correct. For these and other submissions at the time of hearing of the complaint the opposite party prays that the Hon’ble Forum may be pleased to dismiss the complaint with costs in the interest of justice and equity.
5. Exs.A-1 to A-6 were marked on behalf of the complainant. No documents were marked on behalf of opposite party.
6. Now the points that arose for consideration in this complaint are:
- Whether the complainant is a consumer under the purview of Consumer Protection Act?
- Whether there is any deficiency of service on the part of opposite party?
- Whether the opposite party committed unfair trade practice?
- To what relief the complainant is entitled to?
7. POINT No.1:- Section 2 (d) defines Consumer and it reads as follows:
“Consumers” means any person who-
i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods does not include a person who obtains such goods for release or for any commercial purpose: or
ii) (hires or avails of) any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who (hires or avails of) the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person (but does not include a person who avails of such services for any commercial purpose.)”
The complainant joined as a member in the opposite party club by paying consideration of an amount of Rs.46,000/- to hire its services for arranging accommodation in their hotels and holiday resorts. Thus the complainant is a consumer under the purview of the Consumer Protection Act 1986.
8. POINT No.2:- The complainant joined as a member in the opposite party club on 05-12-09 by paying Rs.46,000/- as membership fee to avail accommodation for seven days per annum at any of their hotels and resorts by an advance intimation of two weeks. The e-mail (Ex.A-6 dated 29-10-10) request to accommodate in Amrutha Castle from 9th to 12th December, 2010 sent by the complainant revealed that the complainant made requests for accommodation in June and September too. No reply was sent to that e-mail by the opposite parties. Annual maintenance charges have to be paid in November of every year. Absence of any intimation from opposite party to the complainant leads the Forum to draw an inference that opposite parties were negligent to the earlier requests made by the complainant (notably no e-mails or letters denying the requests made by the complainant were present for perusal by the opposite parties).
9. As per the membership agreement Ex.A-1 the member has to pay the annual maintenance charges of Rs.4,000/- (Rs.40/- x 100 points rights) by 1st November in every consecutive year. The complainant joined the opposite party club at the fag end of the year 2009 (on 05-12-09). By then 1st November have passed. Considering this fact the opposite parties should have provided accommodation as per his requests. If the opposite parties are so particular to collect the annual maintenance charge from the complainant/member it should have demanded the complainant before his request.
10. Having received membership fee of Rs.46,000/- the opposite parties cannot remain silent without informing anything to the complainant. The conduct of the opposite parties in not responding to the request of the complainant amounts to deficiency of service.
11. POINT No.3:- The opposite parties were negligent in not replying to the requests made by the complainant thereby committed deficiency of service. The opposite parties adopted unfair trade practice also as discussed above and are liable to compensate the complainant.
In the result the complaint is allowed in part as indicated below:
- The opposite parties are directed to refund the membership fee of Rs.46,000/- (Rupees forty six thousand only) paid by the complainant together with interest @12% pa., from the date of joining (i.e., 05-12-09) till realisation.
- The opposite parties are directed to pay compensation of Rs.5,000/- (Rupees five thousand only) towards mental agony and pain.
- The opposite parties are further directed to pay a sum of Rs.1,000/- (Rupees one thousand only) towards costs of the complaint.
- The above ordered amounts shall be paid within a period of six weeks from the date of receipt of the copy of the order
Typed to my dictation by Junior Stenographer, corrected by me and pronounced in the open Forum dated this the 24th day of November, 2011.
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
DOCUMENTS MARKED
For Complainant:
Ex.Nos. | DATE | DESCRIPTION OF DOCUMENTS |
A1 | 05-12-09 | Copy of purchase agreement |
A2 | 30-11-09 | Copy of membership fee receipt |
A3 | - | Copy of membership certificate |
A4 | 30-03-11 | Copy of letter addressed by complainant to opposite party |
A5 | 30-03-11 | Copies of postal receipts |
A6 | - | Copies of e-mail correspondence with OP |
For opposite party: NIL
PRESIDENT