Date of Filing:30-12-2014
Date of Order:21-01-2019
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM – I, HYDERABAD
P r e s e n t
HON’BLE Sri P.VIJENDER, B.Sc. L.L.B. PRESIDENT
HON’BLE Smt. D.NIRMALA, B.Com., LLB., MEMBER
Monday, the 21st day of January, 2019
C.C.No.124 /2015
Between
- Nemoori Uuday Kumar S/o.N.Madhukar,
Aged about 33 years, Occ: Software Engineer,
R/o.Plot No.35, Raghavendra Colony, Phase –II
Near Rainbow International School, Beeramguda – 502 032
Medak District, Telangana State
- N.Jyothi W/o.N.Uday Kumar
Aged about 34 years, Occ: business,
R/o.Plot No.35, Raghavendra Colony, Phase –II,
Near Rainbow International School,
Beeramguda -502 032 ……Complainants
And
- M/s. Country Vacations
Rep. by its Managing Director
Regd. Office.Amrutha Castle, 5-9-16,
Saifabad, Opp: Secretariat,
Hyderabad – 500 063, Telangana
- M/s. Country Club (India) Ltd.,
Rep. by its Managing Director
Amrutha Castle, 5-9-16, Saifabad,
Opp: Secretariat,
Hyderabad – 500 063, Telangana ….Opposite Parties
Counsel for the complainants : Thakur Poornima
Counsel for the Opposite Parties : M/s. S.Rajesh Jaiswal
.
O R D E R
(By Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
This complaint is preferred under Section 12 of C.P. Act of 1986 alleging unfair trade practice on the part of the opposite parties seeking refund of Rs.70,000/- collected as part of membership fee and compensation of Rs.30,000/- and costs of this complaint at Rs.5,000/- and other reliefs if complainant is found to be entitled by this Forum.
- The complainants case in brief is that they are husband and wife and have received number of telephone calls from opposite party No.1stating that they had won some gifts and were asked to come along with family members and collect the same at opposite party No.1 club situate in Begumpet. Accordingly the complainants along with their minor children went to opposite party No.1 club on 6-07-2013 and they were made to sign on an agreement wherein there is mention of fee of Rs.30,000/- and Annual Administration charges of Rs.2,500/- payable by them and membership will be valid for 25 years to the family members and it can be transferred to an individual or dependent children and an offer of stay for 2 nights and 3 days at its in holiday trips with facilities like Gym, Swimming pool etc. It is further mentioned in the agreement that a complementary holiday for 2nights and 3 days for a period of 3 years at the properties of opposite party No.1 in India during the holiday season opted by them with accommodation with their children. Believing the same complainants signed on the membership form in which opposite party No.2 is made as party. On the same day opposite party No.2 had upgraded the membership of the complainants and asked to pay Rs.1,25,000/- as up-gradation fee. The opposite party No.2 also offered to execute a registered gift deed for a housing plot of 150 Sq.yards in its venture named as Saila Bhoomi on Srisailam road subject to payment of Rs.49,999/- towards stamp duty, registration charges, documentation, legal consultation and incidental expenses to obtain a gift deed. The opposite parties have finally concluded a total membership fee amount will be at Rs.1,70,000/- tenure of vacation membership is 3 years with facilities of 2 nights and two days and club membership is for life time and Annual maintenance charges will be Rs.3,000/-.
Having attracted by the promises made by the opposite parties the complainants have paid a sum of Rs.20,000/- by way of cash and Rs.50,000/- by way of D.D on the same day. A temporary receipt was issued in the name of opposite party No.2. Thereafter after number of requests the opposite parties have provided Xerox copy of purchase agreement for Country club, Master Life membership from Country Vacations International and Memorandum of understanding for up-gradation of existing membership. After going back to home the complainants have gone through the terms and conditions mentioned in the agreement upon which their signatures were obtained by the opposite parties and then realized that the terms and conditions incorporated in agreement are totally different with what the promises made by the agents of the opposite parties. They further noticed that there is no venture in the name and style as Saila Bhoomi on Srisailam road and there is nothing like free gift in the whole scheme and the complainants have to pay money to all the vacations. Hence they had called Mr.Nisarullah representative of opposite party and asked to him cancel the membership and refund the amount of Rs.70,000/- received on 6-7-2013.
On further enquiry the complainants have learnt that no company by name Country Vacations was registered with registrar of Companies and it shows opposite party No.1 is an illegal and un-authorized entity and cheating the public. The opposite party No.2 had created a fake division by name Country Vacations and started this fake membership schemes to earn money. The opposite party No.2 got registered a company in the name and style of M/s. Country Vacations International Ltd but it is not selling the membership under this name to avoid the regulators such as SEBI, RBI, ROC, SFIO and other Economic offences wing’s. The opposite parties have not disclosed the nature of relations among them. The agreement upon which the signatures of the complainant were taken is not registered though it is mandatory under the Companies Act. Hence the activities of opposite parties amount to unfair trade practices. The complainants have made repeated requests with the opposite parties to cancel the membership and refund the amount but there was no response. Hence the complaint.
- Common written version has been filed by both opposite parties denying the allegations of unfair trade practice on their part on the defense set out is as under:
Country Club Hospitality and Holidays Ltd is a leading hospitality company offering state of the art, clubbing facilities, innovative family holiday packages and star studded entertainment events. By 2015 it has 53 own properties, 25 fitness centers and 42 associated resorts across 4 countries. It is recognized as largest chain of family clubs by Limca book of World. It is committed to provide facilities for the families spend quality time in the holidays apart from entertainment by conducting events at its holiday resorts. Apart from it is also involved in CSR activities like blood donation camps in association with Red Cross, supporting child rights by sponsoring books and school uniforms, providing food and other facilities rendering financial support for an orphanage in different places. Opposite party No.1 has been in the market for the past 25 years and it invests heavily in recruiting good manpower and training the customer care for staff.
The complainants joined as Master life membership of Country Club India Pvt.Ltd on 9-07-2013 and paid an amount of Rs.70,000/- out of total membership fee of Rs.1,60,000/- and failed to pay the balance amount of Rs.90,000/- having signed on purchase agreement for Country Club Master Life membership which is for life of the complainants. The amount paid towards membership fee is non-refundable as per the terms and conditions off the purchase agreement signed by them. They are entitled to book holidays for 2nights and 3 days and for 3 consecutive years in the resorts of the opposite parties. They were allotted complimentary housing plot at its venture in Saila bhoomi situate at Srisailam Road subject to payment of full membership fees and development and registration charges etc of Rs.49,999/- but the complainant failed to pay those amounts. The opposite parties are willing to register the said complimentary housing plot on condition of the complainants to pay the balance membership fee of Rs.90,000/- along with development and registration expenses. The complainants ought to pay Rs.2,500/- towards annual maintenance charges irrespective of usage of club facilities. The complainants by not paing the balance amount of membership fee have committed breach of contract. The complainants have signed the agreement of membership form which is a valid contract between the parties and having accepted for the terms and conditions incorporated in the agreement they cannot unilaterally repudiated. Hence they have no right to ask for refund of the membership fee paid. Since the complainants have signed the membership agreement having understood the terms and conditions stipulated therein and paid part of the membership fee they cannot ask for refund of the amount paid colleting of membership fee does not amount to unfair trade practice hence there is no unfair trade practice or deficiency of service on the part of the opposite parties to the complainants. Hence the complainants are not entitled for any of the reliefs prayed for in the complaint and accordingly it is liable to be dismissed.
In the enquiry stage the complainants have filed a joint evidence affidavit reiterating the contents raised in the complaint and to support the same they have got exhibited four (4) documents. For the Opposite Parties evidence affidavit of Sri Bhanumurthy stated to be Manager of opposite party has been filed and through him got exhibited two (2) documents . Both sides have filed written arguments and supplemented the same with the oral submissions.
On a consideration of material available on the record the following points have emerged for consideration .
- Whether the opposite parties have indulged in unfair trade practice by collecting an amount of Rs.70,000/- towards part of Life membership fee and are liable to be refund the same with a compensation of Rs.30,000/-?
- To what relief?
Point No.1: Since the opposite parties in the written version itself have admitted receiving of Rs.70,000/- out of total life membership fee of Rs.1,20,000/-, no further enquiry is needed on this aspect. As could be seen from Ex.A1 the so called purchase agreement in Country Club Master Life on 6-7-2013 only. Ex.A2 is stated to be memorandum of understanding for up-gradation of existing members and it is also signed by second complainant on 6-7-2013. Para 3 at page 2 of Ex.A2 says opposite party No.2 offer’s to sell its club membership under special up-gradation scheme extended to the existing members of the Country Club. As on 6-7-2013 the complainants are not existing members they were new members because they have signed on the purchase agreement under Ex.A1 on that day itself. Then how can the opposite party No.2 up-grade the scheme to the new members when the covenant says it’s for the existing members. The up-gradation membership fee as mentioned in Ex.A2 is Rs.1,25,000/- as per the clause 4 in page two of the document. The sub clause (4) of A and B, the sub-clause (4) in A and B remained blank. The clause 5 relates to payment of the balance up-gradation fee and schedule there in but this clause also was not filled up. It is not in dispute that an amount of Rs.70,000/- was collected by the opposite parties from the complainants but same is not shown in the Ex.A2 by the opposite parties for the reasons best known to them. Without filling the blanks in the important clauses in so called Ex.A2 agreement the opposite parties cannot plead that the same is concluded contract between the parties and one party to it unilaterally cannot repudiate by asking for refund of amount paid. Hence the defense taken by the opposite parties that the complainants are not entitled to seek refund of the amount paid has no force to sustain.
Clause 11 of Ex.A2 further says member of the opposite parties is entitled a complementary plot of 150 Sq.yards in its venture known as Saila Bhoomi located at Srisailam Road. Clause 14 says the opposite party No.2 has confirmed that it has obtained necessary permission from the concerned Grampanchayat for the said residential layout venture. But even as on today the opposite party has not filed any scrap of paper to show that either it had obtained permission or in the process of obtaining the permission. It is pertinent to bear in mind that the complainant has specifically stated that there is no venture as Saila Bhoomi at Srisailam Road and opposite party having denied it did not come up with a documentary evidence to show the purchase of land of layout and filing of any application with the concerned Grampanchayat so as to substantiate the allegation of the complainant that there is no venture at all is false.
It is specific allegation of the complainant that after collecting the copies of the agreement upon which their signatures were obtained by the opposite party they have verified and made enquiries and learnt that the claim of the opposite parties that they are legal entities is false as on verification from the registrar of the companies says no legal entity in the name of opposite party has been registered. For this also there is no offer of explanation from the opposite parties by filing atleast copy of registration certificate obtained from the registrar of the Companies. Thus it is crystal clear that the opposite parties having proclaimed entities and got world class facilities in offering the holiday recreation clubs collected huge amounts. Soon after signing on the agreement the complainant opted to withdraw and asked to refund the advance amount paid but the opposite parties under the guise of the clause in Ex.A1 and A2 that amount paid is not refundable have refused. The opposite parties under the guise of it cannot be allowed to enrich because even as on today they have not rendered the any services to the complainants. Hence the point is answered infavour of the complainants.
Point No.2: In the result, the complaint is allowed directing the opposite parties
- To refund an amount of Rs.70,000/- with interest thereon at 9% P.A from the date of collecting the same from the complainant to the date of service of this order.
- The opposite parties are further liable to pay a sum of Rs.25,000/- as compensation for causing mental agony to the complainant by not refunding the amount to them on demand.
- The opposite parties are also liable to pay a sum of Rs.5,000/- as costs of this complaint.
Time for compliance is 30 days from the service of this order if they failed to comply the order they are liable to pay interest on Rs.70,000/- and on the compensation amount of Rs.25,000/- at 12% P.A.
Dictated to steno transcribed and typed by her pronounced by us on this the 21st day of January , 2019
MEMBER PRESIDENT
APPENDIX OF EVIDENCE
PW1 DW1
Nemoori UdayKumar Sri Bhanumurthy
N.Jyothi
Exhibits filed on behalf of the Complainant:
Ex.A1 is copy of purchase agreement
Ex.A2 is copy of memorandum of understanding for up-gradation of existing membership
Ex.A3 is copy of Temporary receipt dated 6-07-2013 for an amount of Rs.70,000/-
Ex.A4 is copy of debit sale receipt of HDFC Bank dt.06-07-2013
Exhibits filed on behalf of the Opposite parties
Ex.B1 is copy of button up confirmation by member (Post button up)
Ex.B2 is copy of few facts of the concept
MEMBER PRESIDENT
