COMPLAINT FILED: 22.11.2010

DISPOSED ON: 19.01.2011

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

19^TH JANUARY 2011

  PRESENT :-  SRI. B.S. REDDY                             PRESIDENT

                     SMT. M. YASHODHAMMA                MEMBER                   

                     SRI. A. MUNIYAPPA                         MEMBER

       COMPLAINT NO.2629/2010

O R D E R

SMT. M. YASHODHAMMA, MEMBER

This is a complaint filed u/s. 12 of the Consumer Protection Act of 1986 by the complainant seeking direction against the Opposite Party (herein after called as O.P) to refund Rs.1,87,000/- along with interest at the rate of 18% p.a. from 20.03.2007 and compensation of Rs.1,00,000/- and litigation cost of Rs.20,000/- on the allegations of deficiency in service.

2.      The brief averments made in the complaint are as follows:

          Representative of the OP contacted complainant No.1 and informed that complainant No.1 has won the prize in lucky coupon which was dropped at Big Bazar Shopping Complex requested complainant No.1 to come along with his wife i.e complainant No.2 to collect the gifts. OP instead of handing over the gift requested the complainants to attend the meeting and created the situation that complainants have to become the member of the OP Club. Lured away with offers made by OP On 20.03.2007 complainants paid Rs.1,87,000/- to OP. Which is a division of country Club. OP accepted the membership and executed purchase agreement dated 20.03.2007 in favour of the complainants. OP promised and assured additional benefits to the complainants such as life membership of country Club, Access to all other affiliated club within India and abroad, discount of 20% on food, discounts on room tariff at various hotels, discount at various shopping outlets across the country.  Apart from that they are entitled for 2 plots measuring 1089 sq.ft each at Coconut Groove, Tumkur apart from 7 days holiday package every year for a period of 5 years both in India and Abroad. Accidental insurance coverage of Rs.5,00,000/-. On 26.07.2007 OP informed the complainants that one plot will be allotted at Vedic Spa as against two plots at Coconut Grove, Tumkur. Apart from that OP has not executed any documents in respect of plot allotted to them. Inspite of repeated request and demands OP failed to show the plot to be allotted to the complainants and failed to arrange at least one holiday package till today. While becoming the member OP has made all sorts of promises and assurances but after receipt of the amount totally neglected and failed to respond to the complainant’s calls. Hence complainants requested OP to refund the amount on number of occasions, there was no response from OP. Though complainants invested their hard earned money to become the member of the project floated by OP to acquire the residential plot they are unable to reap the fruits of their investment because of the hostile attitude of OP. Hence complainants felt deficiency in service on the part of the OP. Under these circumstances they are advised to file this complaint for the necessary relief’s.

3.      On admission and registration of the complainant notice is sent to OP. Though OP was duly served with notice remained absent without any sufficient reason or cause. The absence of the OP does not appear to be as bonafide and reasonable. Hence OP placed exparte.

4.      In order to substantiate the complaint averments complainant No.1 filed his affidavit evidence on behalf of himself and also on behalf his wife i.e. complainant No.2 and produced original receipts dated 21.03.2007 for Rs.60,000/- Rs.40,000/- dated 26.03.2007 for Rs.87,000/- and request letter for refund dated 09.11.2009, reply of OP dated 12.04.2010, copy of the purchase agreement dated 20.03.2007 and terms conditions and contract copy of the allotment dated 20.06.2007, Member request form. Heard the arguments of the complainants.

5.      It is the case of the complainants that they being attracted by the offer maid by OP, became the members of OP club on 20.03.2007 complainants paid Rs.1,87,000/- to OP; to substantiate the fact of payments complainants have produced receipt issued by OP and copy of the purchase agreement dated 20.03.2007. It is further contended by the complainants that OP in its letter dated 26.07.2007 congratulated the complainants for having become the members of OP club and life time country club membership and assured the complainants to allot a plot measuring 1089 sq.ft. at Vedic Spa.  Further till November 2009 OP has failed to show the plot to be allotted to the complainants and failed to respond to the complainants.  Further failed to arrange at least one holiday package for about two and half years. Hence on 09.11.2009 complainant issued request letter for refund of amount seeking to cancel membership since complainants are not getting any holiday package and plot as promised by OP and requested OP to refund Rs.1,87,000/-  including interest failing in which to approach the consumer Forum. On 12.04.2010 OP in its reply letter has assured to make necessary arrangement to sort out the grievances of the complainant if any by second week of June 2010. We have perused the said letter issued by OP. But till November 2010 there is no response from OP.  Hence complainants filed this complaint for the necessary reliefs.

6.      We have perused the unchallenged affidavit evidence and documents produced by the complainants. Non appearance of OP even after the duly service of notice leads us to draw an inference that OP admits all the allegations made by the complainant in toto.  Though the complainants invested their hard earned money they are unable to reap the fruits of their investment having spent such a huge amount and awaited for more than 3 ½ years. OP having retained the said huge amount without allotting plots as assured accrued wrongful gain to self and caused wrongful loss to the complainants.

7.      OP offer accepting the membership fees and also entering into purchase agreement has failed to offer any facilities or benefits as assured. Inspite of its written reply dated 12.04.2010 OP has not refunded the membership fees. This act of OP amounts to deficiency in service on its part. We are satisfied that complainants are able to prove deficiency in service against OP.  Under these circumstances we are of the considered view that complainants are entitle for refund of membership fee paid along with interest at the rate of 12 % p.a. and litigation cost of Rs.2,000/-.  Accordingly we proceed to pass the following:

ORDER

          The complaint is allowed in part.  OP is directed to refund Rs.1,87,000/- along with interest at the rate of 12% p.a. from 26.03.2007 till realization and litigation cost of Rs.2,000/- to the complainants. This order is to be complied within four weeks from the date of its communication.

(Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 19^th day of January 2011.)

                                                PRESIDENT

MEMBER                                                  MEMBER                     

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