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

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Complt. Case No : 1335 of 2009

Date of Institution:    24.09.2009

Date of Decision  :   06.08.2010

R.K.Lohan son of Sh.Mange Ram Lohan, Resident of H.No.280, Sector 33-A, Chandigarh, at present resident of H.No.166, Sector 21, Panchkula 134112

 ……Complainant

V E R S U S

1]       M/s Suman Motels Ltd.,Tej Gaurav House, 109 Eeleang Road-2, Mumbai through its Managing Director.

2]          Command Manager, M/s Suman Motels ltd., 208, Parshva Nath Chambers, 19/21, Essaji Street, Vadagadi Mumbai.

3]          Divisional Manager, M/s Suman Motels Ltd., C-123, Lajpat Nagar, New Delhi 110024.

4]          Regional Manager/Divisional Branch Manager, M/s Suman Motels Ltd., SCO No.139/141, Sector 17-C, Chandigarh.

.…..Opposite Parties

CORAM:          SH.LAKSHMAN SHARMA                         PRESIDENT

                    SH.ASHOK RAJ BHANDARI            MEMBER

                    MRS.MADHU MUTNEJA                        MEMBER

PRESENT:          Complainant in person.

OPs are exparte

PER SH.ASHOK RAJ BHANDARI, MEMBER

                    As per the case of the complainant, he on being allured by the schemes of OPs in the year 1998, purchased “Instavac Premium Membership” from them after making payment of Rs.12,222/- on 07.07.1998.  On this amount, the complainant had to get interest upto 11% p.a. and the maturity amount after 5 years besides rent-free holidays in different hotels of the company at different locations once a year. 

                    Thereafter the OPs launched another scheme namely “Full Holiday Bond” and as per its features, he had to invest Rs.1.00 lacs one time or in different installments and get interest @11% p.a. at the end of the year besides maturity value after the completion of age of the bond and entitlement to enjoy seven days & six nights in a year for ten years with no hidden cost, free electricity, free house keeping, free maintenance at any of Holiday Bond property, location or the property owned by the company, the bond could have been encashed at 150% of the face value after completion of 5 years and other attractive offers and the amount of Rs.12,222/- aforesaid had to be adjusted in the purchase of value of the bonds.  As such, the complainant purchased the scheme “Full Holiday Bond” and converted the amount of Rs.12,222/- deposited for the scheme namely “Instavac Premium Membership” into the New Scheme.  The complainant also paid rest of the amount in 9 installments on different dates between 27.11.1998 and 14.5.2000.                                 After that the OP Company also launched a new scheme namely “Hermitage 2000” and as per its features, the complainant had to invest the amount of Rs.65,000/- and to get interest @11% p.a. at the end of the year and Rs.1.00 lac as maturity value after completion of 5 years from the date of receipt of payment towards said scheme besides getting rent free holidays for 6 days in a year till the validity of the bond.  The complainant paid the amount Rs.65,000/- in four installments towards the purchase of said scheme i.e. Hermitage 2000.

                    It is stated that even after having received the amount of Rs.1.00 lac for the purchase of Full Holiday Bond, the OPs did not issue the Holiday Bond Certificate, Bond Certificate, Free Stay Voucher, 70% discount vouchers for stay, Life Membership Card/Certificate of Club Uptown International till the date of filing the complaint inspite of repeated requests followed by several reminders.  On maturity of Hermitage’ 2000 bond, the complainant sent the original cash bond duly discharged as desired by OP in Jan.,2005 and also sent the buy back option of Full day Holiday Bond but the OPs did not pay anything.  Hence, this complaint has been filed alleging deficiency in service as well as unfair trade practice on the part of OPs with a prayer that OPs be directed to pay maturity amount to the complainant for the purchase of “Full Day Holiday Bond” and “Hermitage’ 2000 Bond” with interest @12% p.a. on the maturity amount till actual payment and pay compensation for harassment, financial loss etc. along with litigation cost.       

2]                 The OPs did not turn up despite having been duly served through publication in daily newspaper “Jansatta” in its issue dated 27.2.2010.  Therefore, the OPs were proceeded against exparte.

3]                 We have heard the complainant in person and perused the evidence led by the complainant in support of his contentions. 

4]                 The basic facts of the case in respect of the complainant’s having purchased “Instavac Premium Membership” from the OPs in the year 1998 after paying a sum of Rs.12,222/- on 7.7.1998 on which the OPs were to pay interest at the rate of 11% per annum on maturity amount after 5 years besides rent free holidays in different holiday homes of the company at different locations once a year, have fully been established.

5]                 It is also a fact that the complainant had invested a sum of Rs.1.00 lacs in “Full Holiday Bond” scheme of OP and the said amount was paid in installments by the complainant.  It was stated that the OPs shall pay the interest at the rate of 11% p.a. at the end of the year besides maturity value after completion of the age of the bond and also 7 days and 6 nights in a year for 10 years and other benefits at any of the Holiday Bond Property owned by the OPs.  The bond in question was also encashable at 150% of the face value after completion of 5 years.  The complainant lured by the assurances of the OPs, purchased the scheme by converting the amount of Rs.12,222/- deposited by him earlier into the new scheme.  He also paid the remaining 9 installments between 27.11.1998 and 14.5.2000 to make the total of Rs.1.00 lakh payment.

6]                 After purchasing the above “Full Holiday Bond” of Rs.1.00 lakh, the complainant had also invested in another new scheme of the OPs called “Hermitage 2000” under which he invested another Rs.65,000/- to get interest @11% per annum at the end of the year and Rs.1.00 lakh as maturity value at the end of 5 years, in addition to certain other benefits at the Holiday Homes of the OPs.  As per the complainant, even after receiving Rs.1.00 lakh for the purpose of “Full Holiday Bond”, the OPs did not issue the Holiday Bond Certificate and Certificate for the other benefits, which were available to him under the scheme.  Not only that, on maturity of the “Hermitage 2000 Bond”, the complainant sent the original cash bond duly discharged to the OPs in Jan., 2005 and also sent the buy back option of Full Day Holiday Bond but the OPs failed to pay anything to the complainant.

7]                 Notices were sent to all four OPs. 

8]                 So far as OP No.1 is concerned Mr.Surendra ;M. Khandhar, M.D. of M/s Suman Motels Ltd. was duly served but the packet/notice came back with the report “Not Accepted”.  Under these circumstances, OPs No.1 stood duly served but nobody appeared on his behalf, therefore, OP No.1 was proceeded exparte on 14.1.2010.

9]                 Since OPs No.2 to 4 could not be served through ordinary process, they were served through publication in the daily newspaper of ‘Jansatta”, which was published on 27.2.2010.  Despite that, none of the OPs No.2 to 4 made appearance on the dates of hearing.  Therefore, they were also proceeded exparte on 10.5.2010.

10]               In view of this, all four OPs i.e. OPs No.1 to 4 were proceeded exparte.  The complainant appeared in person on all the dates of hearing of the case and pleaded his case, and at the same time, the OPs remained absent all through the case proceedings.  Therefore, there is no reason to disbelieve the contentions of the complainant.  Even otherwise, all the pleadings and contentions of the complainant have been properly documented and the complainant has been able to prove his case beyond even an iota of doubt.  Therefore, in our view, the complainant has been able to successfully prove and establish his case against the OPs and also that the OPs did not care to appear before the Forum to defend their case.  Under the circumstances, we accept the contention of the complainant and find that the present complaint has a lot of merit, weight and substance in favour of the complainant.

11]               Keeping in view the above detailed analysis of the case, we accept the present complaint and allow it in favour of the complainant and against the OPs.  We direct the OPs to jointly and severally make the following payments to the complainant:-

i)             To pay back the maturity amounts for the sum paid by the complainant for purchase of “Full Holiday Bond” (Principal amount Rs.1.00 lakh) as well as Hermitage 2000 Bond (Principal amount Rs.65,000/) along with interest at the rate of 11% p.a. on the principal amount in each case starting with the date of issue of the said bonds till the date of actual payment to the complainant.

ii)           To pay a compensation of Rs.1.00 lakh to the complainant for causing him great physical harassment, mental agony and pain for a period of more than 10 years by not paying the maturity value of the bonds and also not providing him the assured facilities at their holiday homes as well as depriving the complainant of other benefits promised by the OPs.

iii)          To pay a sum of Rs.5000/- as cost of litigation.

                The aforesaid amounts shall be paid by the OPs jointly and severally within a period of 45 days from the date of receipt of certified copy of this order, failing which they shall pay the aforesaid amounts (except litigation cost) along with interest @18% per annum as calculated from the date of filing this complaint i.e. 24.9.2009 till the date of actual payment, besides paying the litigation cost of Rs.5,000/- to the complainant.

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

Announced

6^th Aug., 2010.

                                                                              Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                       Sd/-

                                       (ASHOK RAJ BHANDARI)

MEMBER

Sd/-

                                                             (MADHU MUTNEJA)

MEMBER

‘Om’