CONSUMER DISPUTES REDRESSAL FORUM – X

GOVERNMENT OF N.C.T. OF DELHI

Udyog Sadan, C – 22 & 23, Institutional Area

(Behind Qutub Hotel)x

New Delhi – 110 016

Case No. 282/2006

SH. SHATANJIVA HOOJA

C/O VIRENDER MEHRA

R/O 22/630, DDA FLATS,

NEW DELHI-110062

………. COMPLAINANT

Vs.

1. GENERAL MANAGER

STANDARD CHARTERED BANK

BAHADUR SHAH ZAFAR MARG

NEW DELHI.

2. GENERAL MANAGER RCI INDIA LTD.

PINE VALLEY, I^ST LEVEL EMBASSY GOLF LINK,

BUSINESS, BANGALORE-560071

3. M/S D. CHALET

90/27A, BASEMENT,

NEAR MAIN MARKET,

MALVIYA NAGAR

NEW DELHI-110017

4. DREAM VISTAS PVT. LTD.

AT-S 262, GREATER KAILASH

PART- 11BF NEW DELHI

………….RESPONDENTS

Date of Order:14/08/2018

O R D E R

Ritu Garodia-Member

            This complaint under Section 12 of the Consumer Protection Act, 1986 was filed by Shatanjiva Hooja, the complainant, against (1) General Manager, Credit Cards and Personal Loans, Standard Chartered Bank, and (2) General Manager (India Operations), RCI India Pvt. Ltd (Dream Vista Pvt. Ltd.), hereinafter referred to as OP-1 and OP-2 respectively,   on 10^th April, 2006, which was sought to be amended and vide orders of this forum passed on 11^th March, 2013, permission to file an amended complaint was granted, and amended complaint was taken on record on 10^th June, 2013, whereby the complainant impleaded two new OPs, namely,  (3) M/s D. Chalet and (4) Dream Vistas Pvt. Ltd., hereinafter referred to OP-3 and OP-4 respectively. 

            In the amended complaint, it is submitted that on 1^st April, 1998, the complainant received a message from OP-2 that the complainant has been selected in a draw of lots and they requested him to come in hotel in Panchsheel Delhi, where he met the representatives of the OPs and told that if he would pay a sum of Rs.1,50,000/- per  adult person, they would provide  studio apartments room accommodation for enjoying national or international vacations for 33 years free of cost.  It was further represented by them that as a special offer, every person is required to pay a sum of Rs.90,000/- instead of Rs.1,50,000/- and it was done in such a manner that the complainant had no time to think and decide about the scheme.   The complainant paid a sum of Rs.10000/- as advance to OP-4 against receipt no.3312, and thereafter OP-2 introduced OP-3 who is franchisee of OP-2.   The balance amount of Rs.80,000/- was to be paid in 24 instalments of Rs.6666/- each in such a manner that the complainant has paid a sum of Rs.90,000/- to the OP.   As per the instructions of OP-2, the complainant made an agreement  no.DLR-253 dated 1.4.1998 with OP-3 and OP-4 and OP-4 has received the entire money from the complainant.  

            It is further submitted that the complainant approached the OPs several times to provide accommodation in terms of the agreement but  they either did  not respond to the call of the complainant or demanded double the amount for availing the vacation facilities. It is submitted that the complainant sent several letters requested the OPs to arrange to book accommodation for four members for 15 days w.e.f. 1^st May, 2000 but the OPs avoided it on one pretext or the other and till date have failed to do so.  It is stated that the OPs have also kept changing their office addresses without any information to the complainant just to harass the complainant.   It is submitted that in the month of January 2005, OP-1 sent  a credit card to the complainant on the pretext of providing executive services.  OP-1 also charged Rs.1000/- from the complainant against the said card but it was never activated.  OP-1 also issued many aggregated statement of account to the complainant for paying an amount of Rs.8000/- against the use of the said card though it was never used by the complainant.  The OPs are stated to have committed negligence and the complainant has been put to physical agony and loss of money, and are allegedly guilty of providing deficient services  and the OPs are absolutely bound and are severally and jointly  liable to compensate  the complainant.  The complainant has thus prayed that the OPs be directed to refund a sum of Rs.90,000/- with interest, and Rs.2 lakhs towards the damages/compensation for the mental agony, harassment and immense loss to the complainant, along with Rs.15,000/- towards legal expenses incurred by the complainant.  

            OP-1, in its reply, submitted that the complainant had availed the membership of RCI Club and under the said scheme, he was offered free accommodation for 30 years at the hotels of RCI at various places in India and abroad; that in the year 2004, OP-1 approached the complainant and explained him about a new product, i.e. RCI Executive Credit Card,  being offered by OP-1 exclusively to RCI members, on payment of one time fee of Rs.999/- and that he could pay the renewal fee for RCI membership through that card and the amount thereby can be repaid by him to OP-1 in equated monthly instalments.  The complainant applied for the said card by filling in and signed the application form and opted to pay the renewal fee for two years towards RCI Club membership which was Rs.4,775/- in 24 instalment.  Accordingly, an RCI Visa Executive Card bearing no.5543-7843-3703-4914 was issued to the complainant on 8.12.2004, and activated on 14.12.2004.  After its activation, the complainant became liable to pay Rs.999/- and as per the offer, OP-1 paid the two years renewal fee of Rs.4775/- to RCI, thereby making the complainant liable to pay the said amount in 24 EMIs.   It is further submitted that through the said RCI card, he made a payment of Rs.3995/- to the Royal Sundaram Allia.   It is further submitted that OP-1 received a FAX dated 16.6.2005 from the complainant stating the said insurance policy does not suit him  and nowhere disputed giving his consent for availing the insurance policy from Royal Sundaram.  OP-1 wrote to the Insurance company and part of the amount was recredited to the account of the complainant, after making deductions as per the  terms and conditions of the Insurance policy.   Thus it is clear that there is no fault on the part of the OP-1 as the OP-1 has acted only in accordance with the instructions of the complainant.  It is submitted that the grievance of the complainant against OP-1 is totally misconceived and not maintainable, as the role of OP-1 was limited only to provide the facility of credit card.

            OP-2, RCI India Pvt. Ltd., in its reply submitted that no cause of action ever arose warranting the filing of the present complaint against OP-2.  It is submitted that the complainant apparently failed to understand the entire scheme and is erroneously blaming the OP-2, who in the first instance is being addressed as Dream Vista Pvt. Ltd. who, in fact, was the marking agent of D’Chalet resort and is a separate entity from RCI.   It is stated that there is no allegation of deficiency in service on the part of OP-2.  It is further submitted that there was no privity of contract between the complainant and OP-2, as admittedly he had entered into the Purchase Agreement with the D’Chalet Resort and its marking agent Dream Vista Pvt. Ltd to whom he has made the full payment of Rs.90,000/- as is evident from the receipt place on record.  Hence, OP-2 denies any liability to refund any amount whatsoever, or any compensation for any deficiency of service as there is none.1

            It is submitted by OP-2 that RCI is a holiday club and facilitates the members of its affiliated resorts only in the holiday exchange system and provides exchange mechanism within its network to exchange timeshare weeks owned by its members with affiliated resorts.  It is submitted that OP-3 and 4  are developers/owners/management of the Resort which has affiliated itself to the RCI’s  exchange programme, and RCI and D’Chalet resort and Dream Vista Pvt. Ltd. are separate and distinct entities and RCI has no joint venture, partnership or agency relationship with any of them.  It is further submitted that the complainant has the legal right to own or use accommodation at an affiliated resort, D’Chalet resort/Dream Vista Pvt. Ltd. subject to having complied with the formalities for availing the services and for that he has to enter into a time share agreement with them for which he has to pay the full amount of the time share fee to the affiliated resort and the amount for purchasing the time share with the affiliated resort is paid only to the resort developer and not to RCI.  RCI does not own any resort anywhere in the world and is not involved in any of the time share selling activity.   It is submitted that there is resort affiliation agreement between RCI and each affiliated resort enabling each affiliated resort to submit enrolment application forms and if agreed between the buyer and the seller pay certain membership fee on behalf of the buyers of the holiday ownerships at the affiliated resort for an initial membership period.  It is submitted that after entering into timeshare agreement with the affiliated resorts, the member applies for membership to RCI and also enters into RCI Terms of membership with RCI which sets out the legally binding terms and conditions that will apply to all programmes and services offered to members by RCI.   The role of RCI comes into picture only when the complainant wants to exchange his holidays at a place other than its home resort – D’Chalet, Manali.   It is submitted that there is no question of any deficiency in service on the part of OP-2.

            OP-3 and OP-4 were added as parties but vide orders dated 10/06/2013.  The complainant submitted an application for deletion of OP-4 as being not traceable, particularly because it was stated to be an agency of OP-3. The application was allowed on 13/07/2015 and OP-4 was thus deleted from the array of the OPs.   The complainant, OP-1 and OP2 have filed their respective evidence by way of their affidavits and also filed written arguments.  The arguments of the rival parties mentioned and repeat the same facts and circumstances as had been originally stated by the parties in their earlier pleadings.   OP-3 was represented by one Shri Sudhanshu Advocate as mentioned in the order dated 21^st April, 2014, who appeared only once and thereafter stopped appearing.

            We have considered the pleadings, documents and arguments filed by both the parties.  The complainant paid Rs. 90,000/- to OP3 and Dreams Vistas Pvt. Ltd. as per the purchase agreement dated 1/04/1998.  Wherein Rs. 10,000/- was paid as advance and Rs. 6,666/- was to be paid in 12 equated monthly instalments (EMI) starting form 20/05/1998.  The agreement was for purchase of timeshare in studio apartment for four persons in OP3 resort.  The said agreement policy states that Rs. 750/- will be charged towards maintenance fee. It further states that RCI membership fees has been paid for three years and thereafter, the complainant was to continue RCI membership i.e. OP2 membership by paying the applicable charges.  The agreement also states that exchange fees and guest certificate fees will be charged from the complainant as per rule and any request for the exchange of holidays to be made directly to RCI.  The said membership was renewed by complainant subsequently.

            The complainant sent several letters requesting for accommodation but OP avoided the same on one pretext and other.  The complainant has placed a letter on record dated 1/01/2000 to OP2 wherein it was requested that booking for Hongkong / Shri Lanka/ Dubai be confirmed.  The courier receipts are placed on record.  The complainant has also filed on record a letter dated 13/03/2003 to OP2 along with courier receipt requesting OP2 to make reservation for holidays for three weeks. These two letters were posted at the address of Dream Vistas Pvt. Ltd.   The complainant has again sent a letter dated 16/02/2005 to OP2 on its registered address which is runs as under:

                                                            Courier

To,

The General Manager,

RCI India Pvt. Ltd.

Pine Valley, First level, Embassy Golf Links Business Park,

Off Intermediate Ring Road,

Bangalore-560071

Sub: Final Notice either for booking or refund of deposit amount with interest.

Dear Sir

Surprisingly enough no booking for resort as per the agreement Dated 01/04/1998 even after telephonic/written/personal meeting etc. I am fed up with your poor service and request you to either book for my vacations any time/months/year as per your convenience and intimate the action taken by you.  If not, I will humbly request your good self to refund the deposit amount of more than 1 lakhs with interest. I fully hope that you will maintain your status and reputation which is very high internationally.

Thanking you.

                                                                                                            Date 16/02/2005

S.Hooja

22/648 DDA Flats Madangir,

New Delhi-110062

Phone: 100-29957592/93

OP2 in its reply has admitted that it provided exchange of the holidays for the members in affiliated resorts all over the world. OP2 has also admitted that complainant was enrolled as a member in its company from 3/06/1999. A welcome letter and membership card was sent to the complainant dated 1/07/1999.  It has also admitted that complainant renewed the membership up to 30/01/2007.  OP2 has relied on its own letter dated 11/01/2006 and 27/06/2006.  The letter dated 11/01/2006 offers renewal at 20% discount and letter dated 27/06/2006 also offers renewal at 10% discount. OP2 has admitted in letter dated 11/01/2006 that the complainant had not taken a single exchange holiday with them.  However, OP2 is completely silent about the letter dated 16/02/2005 sent by the complainant requesting them to providing holidays. 

OP2 has also admitted that the credit card was issued by OP1 in association with OP2 exclusively for RCI members though the said card is governed by card member rules and regulation.  It is admitted by complainant and OP1 that RCI executive credit card which was exclusively for RCI members was issued to the complainant on payment of one time fee of Rs. 999/-.  It is further admitted that the complainant opted to pay the renewal fee for two years towards RCI club membership in 24 installments. An account bearing no. 9356500816195622 was created for its purpose.

            It is stated by OP1 that the complainant made a payment of Rs. 3,995/- to Royal Sundaram Alliance Insurance Company towards insurance policy availed by him through the card.  It is further stated that thereafter, the complainant opted to pay the same in equated monthly installments and after receiving confirmation from the complainant a sum of Rs. 3,995/- was credited back to the primary card account. and another account was created in already existing. Instbuy’s account no. 9356500816195622 to pay the installments to Insurance Company w.e.f 14/06/2005 .  However, OP1 has not filed any documents or SMS which was sent to the complainant for confirmation or where complainant had requested them to pay the premium of the insurance policy.  No documentary proof or any confirmation by the complainant has been placed on record wherein the complainant has opted to pay the same in equated monthly installments.  Though OP1 has placed one acceptance form which clearly shows that RCI membership will be paid in equated monthly installments of Rs. 199/- for 24 months, no such form for payment through EMI for insurance premium has been placed on record. The complainant has emphatically denied purchasing any insurance policy.  The complainant has specifically stated that on receiving statement of account in June 2005, he found that a sum of Rs.3,995/- was deducted from his account to Royal Sundram Alliance Insurance Company without his consent.  He immediately sent an objection letter on 16/06/2005.  The said letter runs as under:

Kindly delete the amount of Rs. 3995/- from the above bill regarding medical insurance of my wife and me since the rules/ regulations/ conditions of the insurance company does not suit me at all.  The insurance company should’ve first sent me the full details and conditions application and only then they should’ve asked you to add this amount in the credit card statement.

After deducting this amount the balance remains Rs. 1252.53/- so I am remitting a cheque of Rs. 201/- as the last month cheque. Further it is very regrettable to inform that in every statement it is mentioned that my minimum due amount is not paid in time and so it will - to the temporary suspension of the card facility while it is never so.

The said letter has been admitted by OP1.

            It is further stated by OP1 that on receiving the complainant’s letter, it immediately requested the insurance company for cancellation of the said policy. However, insurance company gave a partial credit of Rs. 1,998/- as per the terms and conditions.  It is difficult to comprehend the reasons for request for cancellation of the insurance policy being made by OP1.  If the proposal form was filled by the complainant then it should have been the complainant who should have requested for cancellation.  OP1 has not showed its bonafide in deducting amount for insurance policy.  Neither the confirmation by the complainant for debiting the amount towards premium for the policy by OP1, nor the request for the change in mode of payment to equated monthly installments has been placed on record by OP1. It is clear that OP2 has unilaterally availed insurance policy on behalf of the complainant without consent.

OP3 and Dreams Vistas Pvt. Ltd. were impleaded as parties to the complainant vide Order dated 10/06/2013.  Dreams Vistas was deleted from array of parties on 13/07/2015. OP3 failed to controvert the allegation made by complainant and no reply was filed.  The agreement dated 1/04/1998 between the complainant and OP3 has been placed on record which shows that Rs. 90,000/- had to be paid to OP by complainant for purchase of timeshare in OP3 resort.  The complainant has also filed an affidavit in support of his contention that no holidays have been availed by complainant.

Hence we find OP 1 guilty of unfair trade practice in deducting Rs. 3,995/- from complainants account without consent and thereafter, adding interest on the amount in subsequent statement of account. We direct OP1 to set aside the amount charged for the premium towards the insurance bills and subsequent interest and service tax and direct it only to receive installments towards RCI membership charges. We also award compensation of Rs. 10,000/- to be paid by OP 1 for undue harassment and unfair trade practice.

We also find OP2 guilty of deficiency in service by not providing the service of exchange of holidays in affiliated resort and direct it to pay compensation of Rs. 10,000/- towards harassment, mental agony and litigation expense. OP2 is also directed to refund the amount paid towards membership i.e. Rs. 999/- with 9% interest from the date of filing till payment.

We find OP3 guilty of in deficiency in service in failing to provide holidays as per agreement.  We direct it to pay OP3 to refund Rs. 90,000/- with 9% interest from the date of filing till payment.

Let the order be complied with within one month of the receipt thereof. The complaint stands disposed of accordingly.

Copy of order be sent to the parties, free of cost, and thereafter file be consigned to record room.

    (RITU GARODIA)                              (H.C SURI)                                (A.S YADAV)

          MEMBER                                         MEMBER                                 PRESIDENT