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

DATED 25^TH DAY OF JANUARY 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the OP for the following reliefs against the OP:-

1. Direct the OPs to refund the deposit made by the complainants amounting to Rs.90,000/- along with up to date interest @ 18% p.a.,
2. Direct the OPs to pay the damages of Rs.2,00,000/- for causing sufferings, mental agony, stress and anguish to the complainants.
3. Direct the OPs to pay cost of the complaint and to grant such other reliefs.

2. The case set up by the complainant in brief is as under:-

The OP2 has contacted the complainants alleging that these complainants have been selected as winners in a lottery draw as such a felicitation ceremony has been arranged in reputed hotel and they are invited for the said function.  Impressed by the offer made by the OP2 the complainants have joined the felicitation ceremony at a famous hotel in Jayanagar. Another few invites have also assembled there. The OP2 offered the membership of the OP1 to the invitees and the OP2 also given so many assurances and benefits of membership.  

3. The complainants who are innocents impressed by the offers made by the one of the associate of the OP2 have invested Rs.90,000/- on 22.07.2011.  After that the complainants were given an assurance by the OP2 associate that these complainants were given membership to platinum grade.  After that the associate of the OP2 has also given some incomplete documents and further assured the complainants that he will come after some time to receive the balance amount of Rs.10,000/- after removed one stamp paper and some printed green colour sheets in the said documents and also taken the signature of the complainants on a stamp paper.  The said associate of OP2 did not turn up and has not furnished any documents.

4. The complainants contacted personally with some associates of OPs available at their Bangalore office. No one helped the complainants.  After trying for two to three years the complainants have left hope of getting the said membership. They tried to forget about the illegal collection of their hard earned money of Rs.90,000/-.  Recently they received a message from the OP1 stating that these complainants have to pay the AMC for the tune of Rs.69,606/- and last day for payment is 31^st July.  The said message consists of two telephone numbers.  When the complainants have contacted through the said telephone numbers and they have informed the OPs that they have been told to become member to the OP1 club and the incomplete documents supplied to them. So demanding AMC from a non-member is not appropriate and legal.  The person of the OP has not given any reply.  These complainants after coming to know that they have been badly cheated in the guise of issuance of membership but denying issuance of identity card and only responsible persons are only competent to address their issue. The complainants have contacted the nearest police station and they have lodged complaint.  The police authorities have also informed them that they have already received so many complaints against the OPs and there are so many complaints lodged against the OPs throughout the India.

5. The police authorities further informed that they are already working upon earlier complaints on pan India basis and likely to take stringent action against the concerned person within a short period. However there was no guarantee given by them about the complainants money.

6. Under these circumstances, these complainants have been put to tremendous situation as they could not recover their hard earned money due to the inefficiency of the OP1. They have mismanaged the affairs of the club without any control or diligence and squandered the hard earned money deposited by the members on the hope that they shall get handsome privileges and entertainment at nominal cost. Even the board of directors have failed in their duties in properly guiding and directing the things. These complainants were unnecessarily victimized by the OP. the complainants are continuously fighting for refund of their money of Rs.90,000/- from the day of initial payment i.e., on 22.07.2011 till this day.  The complainants have put into worst financial condition due to loss of their hard earned life time money. The complainants have also got issued legal notice on 03.06.2023 to the OPs requesting for refund of amount, inspite of received the legal notice the OPs remained silent and has not taken any action. Hence the complainants have filed this complaint.

7. In response to the notice, OPs have not appeared before this commission. Hence OPs placed exparte.

8. The complainant has filed his affidavit evidence and relies on 10 documents. 

9. Heard the arguments of advocate for the complainant. Perused the written arguments and documents filed by the complainants.

10. The following points arise for our consideration as are:-

1. Whether the complainant proves deficiency of service on the part of OP?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

11. Our answers to the above points are as under:

Point No.1:  Affirmative

Point No.2: Affirmative in part

Point No.3: As per final orders

REASONS

12. Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence, written arguments and documents filed by the complainant. Inspite of issue of notice to the OPs, they remained absent. Hence OPs neither challenged the allegations made in the complaint and also documents and they remained unchallenged.

13. The complainants impressed by the one of the associate of the OP2 have paid Rs.90,000/-. The associate of the OP2 assured the complainants that he will provide membership to platinum grade and also obtained signatures to some incomplete documents on 21.07.2011.  The said associate has also removed one stamp paper and printed green colour sheet and after that as per his instructions these complainants have fill up their names and address and they put their sign on the stamp paper. The said associate of OP2 has not at all turned up after collected Rs.90,000/-. None of the officials or directors or the staff of the OPs have given proper reply to the complainants, whenever they have contacted for refund of the amount. The complainants were not at all given any identity cards and they have not at all got any membership. The platinum grade membership fee is Rs.1,00,000/- but the OP2 has collected only Rs.90,000/- without giving any membership or identity card to the complainants and thereby they have cheated the complainants.  The complainants are fighting for recovery of the amount from the OPs from 2011 till this day. Surprisingly the complainants have received a message from the OP1 stating that they have reminded that their AMC relating to the complainants are outstanding to the tune of Rs.69,606/- and last date for payment is 31^st July.

14. When they tried to contact the OP1 company responsible directors and also officials they didn’t give any valuable solutions and they have not resolved the problems of the complainants. The OP2 have collected only Rs.90,000/- offering platinum grade membership to the complainants even though according to the OPs the amount was Rs.1,00,000/-. They have not at all issued any membership card or identity card to the complainants till today.  The OPs are simply harassing the complainants without refunding the amount. Even though the complainants have approached the concerned police station they have not got any favourable reply from the police station in view of the complaints lodged against the OPs in all over India.

15. In support of their contention the complainant No.1 has filed his affidavit evidence and relied on 10 documents. The Ex.P1 to P4 are the receipts issued by the OPs for having received Rs.90,000/- from the complainants. Ex.P5 is the stamp purchase agreement dated 22.07.2011, Ex.P6 is the message issued by the OP reminding the complainants to pay the AMC of Rs.69,606/-, Ex.P7 is the copy of the legal notice, Ex.P8 and P9 are the postal receipt and acknowledgement.

16. After considering all these documents it is clear that the OPs have played fraud on the complainants by their cunning methods and extracted Rs.90,000/- on the guise of giving platinum grade membership in their club. Even though they have collected the amount on 22.07.2011 the OPs have neither given any membership nor issued any identity card. They have never responded to the complainants when the complainants have tried their best to collect the amount of Rs.90,000/- paid by them.  Even though they are not at all members the OPs tried to extract money by sending message stating that these complainants are due Rs.69,606/- towards annual maintenance.

17. Under these circumstances, the complainants have clearly established the deficiency of service, negligence, fraud and unfair trade practice on the part of the OPs.

18. It is the duty of the OPs to give membership and issue identity card and to provide all the privileges and benefits by treating the complainants as members of their club. Even though the OPs have collected substantial amount for Rs.90,000/- from the complainants have cheated the complainants without giving any membership. Under these circumstances the complainants are entitle for the relief claimed in the complaint.  Hence we answer point No.1 in affirmative and point No.2 partly in affirmative.

19. Point No.3:- In view the discussion referred above we proceed to pass the following;

O R D E R

1. The complaint is allowed in part.
2. The OPs 1 and 2 are hereby directed to refund the amount of Rs.90,000/- paid by the complainants with interest at 12% p.a., from the date of respective payment i.e., 22.07.2011 till realization.
3. OPs 1 and 2 are further directed to pay damages of Rs.1,00,000/- with litigation expenses of Rs.10,000/- to the complainants.
4. The OP shall comply this order within 60 days from this date, failing which the OP shall pay interest at 14% p.a. after expiry of 60 days on Rs.90,000/- till final payment.
5. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 25^TH day of JANUARY 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL