Chandigarh

DF-II

CC/325/2016

Vimla Devi - Complainant(s)

Versus

Mahindra Holidays & Resorts Limited - Opp.Party(s)

Gaurav Bhardwaj Adv.

11 Oct 2017

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

======

Consumer Complaint  No	:	325 of 2016
Date  of  Institution	:	10.05.2016
Date   of   Decision	:	11.10.2017

 

 

 

 

1]  Vimla Devi w/o Pritam Chand, R/o Ward No.2, Tehsil Palampur, District Kangra.

2]  Pritam Chand s/o Late Saran Dass, r/o Ward No.2, Tehsil Palampur, District Kangra.   

                               …..Complainants

Versus

1]  Mahindra Holidays & Resorts Limited, SCO No.68-69, Sector 8-C, Madhya Marg, Chandigarh through its Manager.

2]  Mahindra Holidays & Resorts Limited, Office No.504, Block A, 5^th Floor, Elante Office Suite, Plot No.178/A, Industrial Area,   Phase-I, Chandigarh through its Manager.

3]  Mahindra Holidays & Resorts Limited, Mahindra Tower, 2^nd Floor, 17/18, Patullos Road, Chennai, through its Managing Director/Authorised Signatory.

4]  RCI India Pvt. Ltd., Pine Valley, First Level, Embassy Golf Links Business Park, Off Intermediate Ring Road, Bangalore 560071 through its Managing Director.

                          ….. Opposite Parties

BEFORE:  SH.RAJAN DEWAN                 PRESIDENT

         MRS.PRITI MALHOTRA             MEMBER

                                SH.RAVINDER SINGH              MEMBER 

 

 

Argued by :     Sh.Gaurav Bhardwaj, Adv. for complainant

Sh.J.S.Bhatia, Adv. for OPs No.1 to 3.

OP No.4 exparte.

 

PER PRITI MALHOTRA, MEMBER

 

          Briefly stated, the complainants were approached by Opposite Party No.1 in the year 2008 for providing Membership of OPs and accordingly, the complainant No.1 was provided the Membership which was valid till 30.6.2034 (Ann.C-2). It is averred that the complainants were told that they have to pay Rs.8645/- per month and the amount was to be paid in 48 installments (Ann.C-1).  It is also averred that the complainants were also told that they have to pay a total amount of Rs.3,68,615/- and for that they can enjoy holidays in the resorts of OPs.  Averred that the complainants started paying the installments.  It is further averred that the complainants were surprised to know that they also have to pay Annual Subscription Fee (ASF) of Rs.8000/-, which also the complainants deposited accordingly. It is submitted that the complainants availed one holiday in Bangkok and kept on paying the ASF till 2014 and stopped to pay the ASF thereafter.  It is also submitted that the amount of ASF has been increased to Rs.17,000/- from 2015 onwards.

         It is alleged that the complainants approached Opposite Party No.1 in the year 2013 and requested that the food coupons worth Rs.5000/- as promised in the form and Eight Indian Air tickets were to be provided, but the same have not been provided till date despite several requests (Ann.C-3).  It is also stated that the complainants then planned to go to Singapore in June, 2014 and contacted the Opposite Parties, but they refused to entertain saying that they do not have any resorts in Singapore, whereas they have stated that they have over 3700 resorts all over world.  Thereafter, the complainants sent legal notice dated 19.8.2014 to the Opposite Parties for terminating the membership and for refund of the membership fee, but nothing was done.

         It is pleaded that the complainants availed only one holiday and in that holiday too, they have to pay for their air tickets, and food etc. and ASF of Rs.8000 /- annually to Opposite Parties and the Opposite Parties have provided only the lodging.  It is also pleaded that even if the complainants go on holiday on their own, they can get a hotel room for Rs.3000/- and they can stay for five days by spending only Rs.15,000/-, then what is the purpose of taking Rs.3,.68,615/- by the Opposite Parties, if every year Rs.17000/- is to be paid to avail holiday.  Hence, alleging the above acts & conducts of the Opposite Parties as deficiency in service and unfair trade practice, this complaint has been filed.  

 

2]       Opposite Parties No.1 to 3 in their reply while admitting the factual matrix of the case stated that the complainant No.1 after being satisfied with the rules and regulations of the membership purchased Red One Bedroom category membership and entered into a contract with Opposite Parties Company by signing the Membership Application Form (APF) i.e. the membership contract on 30.5.2008 (Ann.R-1/2).  It is stated that the complainants holidayed at Bangkok, Pattaya from 24.5.2013 to 30.5.2013 (Ann.R-1/7). It is denied that the complainants made a request for booking of holiday at Singapore as alleged. It is also stated that the complainants have stayed as member with Opposite Party Company for 8 years and now finding no utility of the membership, she is trying to recover money paid towards membership fee on the baseless pretext.  It is submitted that the Annual Subscription Fee (ASF) is subject to revision based on Consumer Price Index numbers.  It is also submitted that it is matter of record that the complainants have paid Rs.3,68,615/- towards membership fee.  It is further submitted that the increase in ASF by no stretch of imagination could be termed as unfair trade practice, as alleged. Pleading no deficiency in service and denying rest of the allegations, it is prayed that the complaint be dismissed.

         Opposite Party No.4 did not turn up despite service of notice, hence it was proceeded exparte vide order dated 13.7.2016.

 

3]       The Complainants also filed rejoinder thereby reiterating the averments as made in complaint and controverting that of the Opposite Parties made in their reply.

 

4]       Parties led evidence in support of their contentions.

 

5]       We have heard the ld.Counsel for the parties and have also perused the entire record.

 

6]       It is admitted between the parties that the complainants availed the membership of the OPs by paying an amount of Rs.3,68,615/- (paid in installments) as agreed.  It is also admitted fact that the complainants duly paid ASF (Annual Subscription Fee) of Rs.8000/- till 2013. It is also admitted that the complainants availed the facility of holiday at Bangkok, Pattaya from 24.5.2013 to 30.5.2013 (Ann.R-1/7).

 

7]       The complainants vide present complaint agitated that the OPs did not refund the membership fee when the demand for the same was raised in the year 2014.  It is argued by the ld.Counsel for the complainants that the OPs failed to provide the due services under the contract of membership and also unilaterally enhanced the ASF (Annual Subscription Fee) from Rs.8000/- per annum to Rs.17,000/- per annum abruptly, which is not less than an unfair trade practice on their part.

 

8]       The complainants also agitated that the OPs also not provided the Food Coupons of Rs.5000/- and 8 Indian Air Tickets (One way) as promised.  The complainants also claimed that when request was made to the Opposite Parties for arrangement for Singapore trip in the month of June, 2014, the Opposite Parties refused for the same stating that they do not have any resort in Singapore whereas they claimed that they have 3700 resorts all over the world.

 

9]       The Opposite Parties in their defence claimed that the complainants after thoroughly understanding the terms & conditions of the contract had availed the membership of the Opposite Parties and are well aware of the refund policy of the OPs.  In their reply the Opposite Parties had duly mentioned the amount of Rs.27,992/- for which the complainants are entitled for refund against the total membership cost of Rs.3,68,615/-. 

 

10]      We are of the considered view that the terms & conditions as mentioned in the membership contract are unilateral in nature and the subscriber had no option to add or subtract or modify any terms & conditions thereof except to accept the same in toto.  The refund policy as mentioned and referred to in the terms & conditions in the membership contract is biased one and favourable only to the OPs and thus is rejected being untenable and unjustified.  When once it is clear that the person is entitled for refund in case of cancellation of the membership in question, then it is bounden duty to see the reasonableness in applying the refund policy.  In the present complaint, it is admitted that the complainants availed the facility of holiday only once at Bangkok, Pattaya from 24.5.2013 to 30.5.2013 and thereafter their request for Singapore trip was declined on the ground that there is no resort available in the opted place. There is no clear cut explanation by the OPs in their reply that whether they have any resort in Singapore or not, thus the averments of the complainants are accepted as correct. 

 

11]      It is also a proven fact on record that the complainants have not been provided with Food Coupons and 8 Indian Air Tickets (One way), as was agreed vide Ann.R-1/6, which clearly tantamounts to deficiency in service on the part of OPs as well shows their indulgence into unfair trade practice.

 

12]      The enhancement of ASF (Annual Subscription Fee) from Rs.8000/- to Rs.17000/- is purely an excessive and unexplained act on the part of the Opposite Parties.  The OPs have not placed on record any cogent evidence to justify their excessive enhancement in the ASF from Rs.8000/- to Rs.17,000/-.  Thus the enhancement done by the OPs is totally unjustified and unfounded.

 

13]      It is quite apparent as well admitted on record that the complainants very fairly paid all due Annual Subscription Fees till 2013.  When it was realized that the OPs are not interested in providing due services under the contract as agreed, and also indulged themselves into unfair practice by detaining food coupons of Rs.5000/- and 8 India Air Tickets (one way) besides enhancing the ASF from Rs.8000/- annually to Rs.17,000/- annually without any rhyme and reason, the complainants opted to get the membership cancelled, which in our opinion is right decision in the given circumstances.

 

14]      We are of the concerted view that there is no fun to retain the membership, when the services rendered by the Opposite Parties are at their mercy only, especially when the complainants had paid a huge amount to the tune of Rs.3,38,615/-  for availing the services.  It seems that the OPs are minting money by unfair trade means.  

 

15]      The Opposite Parties in their reply have assessed the amount of R.27,992/-, which as per their policy is refundable. It is admitted that the complainants availed the holiday facility of the OPs once for Bangkok, Pattaya from 24.5.2013 to 30.5.2013, but the amount assessed by the Opposite Parties for the said holiday accommodation to the tune of Rs.64,000/-, in our opinion, is highly exaggerated and on the higher side and the same should be Rs.30,000/- at the most and after deducting such an amount, the balance membership fee should be refunded to the complainants. 

 

16]     In view of the above findings, we are of the opinion that the deficiency in service and unfair trade practice on the part of the OPs have been proved.  Therefore, complaint deserves to be allowed. Accordingly, the complaint is allowed against Opposite Parties with following directions:-

1. To refund the balance membership fee of Rs.3,38,615/- (i.e. Rs.3,68,615-30,000/-) to the complainants;

 

2. To pay an amount of Rs.15,000/- as compensation for the harassment suffered by the complainants on account of deficiency in service as well as unfair trade practice resorted by the Opposite Parties.

 

3. To pay litigation cost of Rs.7000/-.

 

         This order shall be complied with by Opposite Parties within a period of 30 days from the date of receipt of copy of this order, failing which they shall also be liable to pay interest @9% per annum on amount mentioned in sub-para (a) & (b) above from the date of filing this complaint till realization, apart from paying litigation cost. 

        Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

11^th October, 2017                                                         Sd/-

                                                                   (RAJAN DEWAN)

PRESIDENT

 

 

                                                          Sd/-

 (PRITI MALHOTRA)

MEMBER

 

          Sd/-

(RAVINDER SINGH)

MEMBER