COMPLAINT FILED ON:25.05.2011

DISPOSED ON:23.05.2012

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)

23^rd DAY OF MAY-2012

       PRESENT:- SRI. B.S.REDDY                      PRESIDENT                        

                         SRI. GANGANARSAIAH               MEMBER              

O R D E R

SRI. B.S.REDDY, PRESIDENT

The complainant filed this complaint U/s. 12 of the C.P. Act of 1986 seeking direction against the Opposite Party (herein after called as OP) to refund an amount of Rs.50,000/- with interest at 18% p.a. and to pay compensation of Rs.1,00,000/- on the allegation of deficiency in service.

2. The case of the complainant to be stated in brief is that:-

OP contacted the complainant over the phone in the third week of February-2008, recommending to take the membership of the OP’s Country.    The complainant contacted the representative of the OP i.e., Mr.Raghunathan on 21.02.2008 and the said representative of the OP has explained about their country vacations International Holiday Club Membership.     The OP stated that the life membership charge is Rs.75,000/- and assured that immediately after paying a sum of Rs.50,000/- by the complainant, they are going to send the Life Membership ID card within one month to the complainant.    With that assurance, the complainant purchased the membership as per Purchase Agreement dt.21.02.2008 and on the same day paid a sum of Rs.25,000/- through cheque dt.26.02.2008 and on 30.06.2008 further sum of Rs.25,000/- by way cash and OP issued a temporary receipt, on the same day OP issued two receipts by splitting amount for Rs.20,000/- and for Rs.5,000/- for the said sum of Rs.25,000/-.    In total the complainant has paid a sum of Rs.50,000/- to the OP.      After receiving the said sum of Rs.50,000/-, the representative Mr.Raghunathan has collected the two photographs of the complainant and two photographs of his wife.     Even after one month from the date of payment, OP has not arranged to send the Life membership ID card to the complainant and the complainant has contacted on several occasions to the OP but there was no proper response.    The representative of the OP Mr.Raghunathan is stated to have left the job and the complainant was threatened with dire consequences and caused mental agony, monetary loss and inconvenience to the complainant, as such the OP is liable to refund Rs.50,000/- and to pay compensation of Rs.1,00,000.  The Legal Notice dt.14.03.2011 was issued to the OP, the same has been duly served.    OP has neither replied the notice nor complied the demand made therein.   Hence the complaint.

3. On appearance OP filed version contending that the complaint is not maintainable, this Forum has no jurisdiction to entertain the complaint, OP reserves the right to refer the matter only to the courts in Secunderabad and Hyderabad.    OP issued advertisement through media and through other modes to explain to the general public about the ben3efits of becoming member of its club.      The complainant contacted the OP and one of the executive of the OP explained about the various schemes and the complainant being impressed with the offers and expressed his willingness and became member by paying a non-refundable sum of Rs.50,000/-.   The total membership charge is 75,000/-.      The complainant not paid the balance of Rs.25,000/-, hence OP has not received Life Membership I.D.Card.      OP as per its scheme had offered the complainant with many offers and it is the complainant who did not utilize the offers and for the mistake of the complainant for not utilizing the offers,   the OP shall not be liable.       There is no deficiency of service on the part of the OP, even now OP is ready to allot all the benefits of the club.   The membership fees shall not be refunded since it is a non-refundable membership fees.    The complainant having utilizing the club facilities with other such complimentary benefits has come up with new pleas so as to encash the entire amount paid after having utilized the complimentary benefits.   Hence it is prayed to dismiss the complaint with costs.

5. The complainant in order to substantiate complaint averments filed affidavit evidence.  OP has not filed affidavit evidence.

5.   Arguments on both sides heard.

6.   The points now that arise for our consideration in this complaint are as under:

Point No.1:-Whether the complainant has proved the deficiency in service on the part of the OP?

           Point No.2:-If so, whether the complainant is entitled for the relief’s now claimed?

           Point No.3:-To What order?

7.   We record our findings on the above points:

           Point No.1:-Affirmative

   Point No.2:-Affirmative in part

   Point No.3:-As per final order.

R E A S O N S

9. It is not at dispute that the complainant became member of OP-Club by paying an amount of Rs.50,000/- on 21.02.2008 and 30.06.2008 OP has issued the receipts and executed the agreement deed.    The case of the complainant is the representative of OP by name Raghunathan assured to send the life membership I.D.Card of the OP within one month of  the receipt of the amount but OP has not sent the said I.D.Card. As a result, there is deficiency in service on the part of the OP and complainant is entitled for refund of the amount paid with interest and compensation.

10. The learned counsel for the OP contended that the complainant has not paid the balance amount of Rs.75,000/- as he was required to pay total membership fee of Rs.25,000. The complainant has paid only Rs.50,000/- as such the life membership I.D.Card was not issued.   Further it is contended that as per Clause-8 of the purchase agreement in default of making instalment OP is having right to cancel the agreement and forfeit 80% of the amount paid, therefore the complainant is not entitled to seek for refund of the amount.   Further it is contended the membership fee is non refundable and this Forum has no territorial jurisdiction to entertain complaint.   The complaint ought to have been filed at Secunderabad and Hyderabad.

In our view the cause of action has arisen within the jurisdiction of this Forum, hence there is no merit in the contention that this Forum has no jurisdiction to entertain the complaint.    OP has not filed the affidavit in support of the defence version.    We are unable to accept the defence that only on payment of entire membership amount of Rs.75,000/- the life membership I.D.Card was to be issued to the complainant.  From the complaint averments and affidavit evidence of the complainant it becomes clear that at the time of receiving an amount of Rs.50,000/-, Op’s representative assured to issue the life membership card within a month but till date I.D.Card has not at all been issued.  Without the life membership I.D.Card the complainant could not utilize the services of the OP.     We are unable to accept the defence that the complainant has utilized the services of the OP.   The representative of OP though collected the photographs of the complainant and his wife the life membership I.D.Card has not been issued.    The said act of OP in not issuing life membership I.D.Card amounts to deficiency in service on its part.    The complainant is entitled for refund of the amount with interest at 18% p.a. by way of compensation along with litigation cost of Rs.2,000/-.    Accordingly we proceed to pass the following:

O R D E R

The complaint filed by the complainant allowed in part.  

Op is directed to refund an amount of Rs.50,000/- with interest at 18% p.a. from the respective date of payments, till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.

This order is to be complied within four weeks from the date of this order.

        Send copy of this order to both the parties free of costs.

(Dictated to the Stenographer and typed in the computer and transcribed by her, verified and corrected, and then pronounced in the Open Court by us on this the  23^rd day of MAY-2012.)

MEMBER                                                         PRESIDENT

Cs.