The Country Club V/S Sri, Srinivasa. - Consumer Court Case

Karnataka

Bangalore Urban

CC/10/708

Sri, Srinivasa. - Complainant(s)

Versus

The Country Club - Opp.Party(s)

B.R. Prakash

31 Mar 2010

ORDER

BANGALORE URBAN DISTRICT CONSUMER DISPUTES REDRESSLAL FORUM, BANGALORE, KARNATAKA STATE.
Bangalore Urban District Consumer Disputes Redressal Forum, Cauvery Bhavan, 8th Floor, BWSSB Bldg., K. G. Rd., Bangalore-09.
consumer case(CC) No. CC/10/708

Sri, Srinivasa.						...........Appellant(s)
Vs.
The Country Club The Country Club.						...........Respondent(s)

BEFORE:

Complainant(s)/Appellant(s):

OppositeParty/Respondent(s):

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ORDER

COMPLAINT FILED: 03.03.2010 DISPOSED ON: 30.09.2010 BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN) 30th SEPTEMBER 2010 PRESENT:- SRI.B.S.REDDY PRESIDENT SMT. M. YASHODHAMMA MEMBER SRI.A.MUNIYAPPA MEMBER COMPLAINT NOs. 708 & 709/2010 COMPLAINT NO.708/2010 COMPLAINANT COMPLAINT NO.709/2010 COMPLAINANT Sri. H.Srinivasa Son of H. Thimmegowda Aged about 38 years Residing at No.92/44 1st block Ganesha Temple Road Nandini Layout, Bangalore-560 051. Sri.S.Bettaswamy Son of Singaiah Aged about 45 years Residing at No.273,274 7th Cross, 4th main 2nd block Nandini Layout Bangalore-560 051. Advocate B.R.Prakash V/s OPPOSITE PARTIES 1. The Country Club Rep by its Managing Director (Branch office at) No.273, 1st main, defence Colony HAL II Stage, Indiranagar Bangalore-560 038. 2. The Country Club Rep by its Managing Director No.675, Old Syndicate Bank Road, 1st Stage, Indiranagar Bangalore-560 038. Advocate G A Gopi O R D E R SMT. M. YASHODHAMMA, MEMBER These are the complaints filed u/s. 12 of the Consumer Protection Act of 1986 by the respective complainants, seeking direction to the Opposite Parties (herein after called as O.P) to refund the amount paid towards Membership fees along with interest at 24% p.a. and compensation of Rs.2,00,000/- on the allegations of deficiency in service on the part of the OPs. As the OPs in both the complaints are common, the question involved relief claimed being the same in order to avoid repetition of facts and multiplicity of reasoning these two cases stand disposed of by this common order. 2. The brief averments as could be seen from the contents of these complaints are as under: Complainants being attracted to the offer made by OP thought of becoming members of OPs Club under the name and style Cool Card Membership. OPs accepted their membership and collected amount towards membership fees. OPs promised so many benefits including allotment of free sites. But thereafter some how OPs failed to keep up its promise. For no fault of their complainants were made to suffer both mental agony and financial loss. Under such circumstances complainants felt deficiency in service on the part of the OPs. For the convenience sake the card membership, amount claimed, membership number date of legal notice are noted below in the chart. When the repeated requests and demands made by the complainants have gone in vain they are advised to file these complaints and sought for the reliefs accordingly. Sl. No Complaint No. Card member ship Member ship No. Date & Receipt No. Amount Paid Date of Legal notice 1 708/10 Cool card Membership COLCG 448A 05.05.07 51384 05.05.07 10944 Rs.1,00,000 Rs. 25,000 Rs.1,25,000 18.02.2010 2 709/10 Cool card Membership COLCG 580A 08.05.07 91469 30.05.07 52634 Rs. 70,000 Rs. 55,000 Rs.1,25,000 18.02.2010 3. On appearance OP filed the version. The defence setout in all the complaints is almost identical and same. The brief averments made in the version are as under: According to OP the Plots allotted to the complainants under the Cool Scheme is complimentary gift to the membership and the member fee is collected for providing facilities. Now consideration has been collected for the allotment of the complimentary plot and complainants to bear only registration and maintenance charges; Complainants not paid any consideration. Hence they are not Consumers under the C.P. Act Hence complaints are not maintainable; OP has already issued an allotment letter infavour of the complainants allotting a complimentary sites bearing No.525 and 529 at Phase XVIII, Coconut Grove Situated at Madugiri Taluk, Tumkur District in favour of the complainant vide letter dated 31.08.2007; OP has asked the complainants to deposit registration and maintenance charge of Rs.15,000/- within 30 days from the issuance of the allotment letter; Complainants have not deposited the said amount inspite of several requests and reminders; Hence OP could not register the allotted sites in favour of the complainants. OPs ready to the register the site as soon as complainants deposits the registration charges; OP is in the business of hospitality; entire process for procuring and allotment of complimentary plots would be done by the sister concern of the OP. M/s. Amrutha Estates who had purchased several parcel of lands in infavour of its nominees, subsequently such nominees will execute necessary gift deeds in regards to the free complimentary plots in favour of the eligible members of OP. Complainants became the members of OP for the purpose of enjoying the facilities provided by the OP club not for the purpose of getting complimentary sites as alleged in the complaints. The place of the allotment of the complimentary site has been informed by the OP to all the members; There are several phases of Coconut Groove located in different parts of the Tumkur District and several phases of Vedic Spa/Banyan Tree located near Hindupur/Penukonda. The membership fee paid by the members is non-refundable since same would be utilized for development of the Clubs and resorts across the country; any order for refund would cause irreparable harm and loss to the OP wherein thousands of people are earning their livelihood; Membership is transferable and if the complainants want to transfer the membership they can do so; Complainants are enjoying facilities provided by the OP in their clubs; OP is well-known pioneered in making the club and resorts in and around the country and also having leading clubs and resorts across the country. Complainants are enjoying its facilities; OP has already allotted a complimentary sites and non registration of the complimentary plots due to the fault of the complainants; Among these grounds OPs prayed for dismissal of the complaints. 4. In order to substantiate the complaint averments, each one of these complainants have filed their affidavit evidence and produced receipts issued by OPs and correspondence made by OP. On behalf of OP Sri Vijay D.P. Senior Manager (Customer Care) of the OP filed his affidavit evidence and not produced any documents. Then complainants submitted their written arguments. Heard oral arguments from the complainants. Taken as heard from OP side. 5. In view of the above said facts, the points now that arise for our consideration in these complaints are as under: Point No.1:- Whether the complainants have proved the deficiency in service on the part of the OPs? Point No.2:- If so, whether the complainants are entitled for the relief now claimed? Point No.3:- To what Order? 6. We have gone through the pleadings of the parties both oral and documentary evidence and the arguments advanced. In view of the reasons given by us in the following paragraphs our findings on: Point No.1:- In Affirmative. Point No.2:- Affirmative in part. Point No.3:- As per final Order. R E A S O N S 7. At the outset it is not in dispute that the complainants became the members of the OPs scheme as noted in the chart. The OPs accepted their membership and allotted certain number. It is also not in dispute that OPs accepted the membership fees of Rs.1,25,000/-from each of the complainants. Now the main grievances of these complainants is that though OPs collected the membership fees failed to provide the facilities offered and to allot and register the complimentary sites in their favour as promised. 8. According to complainants OPs promised them to allot complimentary sites only on payment of full membership fees. Complainants with a sole intention of getting the complimentary sites became the member of the OPs Club. The receipts issued by the OPs are produced. Inspite of repeated requests and even after service of demand notice dated 18.02.2010 OPs failed to fulfill its promises and to extend the services offered. Both oral and documentary evidence produced by these complainants support their cases. There is nothing to discard their sworn testimony. 9. As against this unimpeachable evidence of the complainants; the defence of the OP that whatever club membership fees paid is non-refundable has no basis. It is further contended by the OP that even now they are ready to execute the sale deed with respect to complimentary sites, if complainants pay required registration fee and stamp duty. But there is no basis for this defence. OPs have not produced any documents to show that layout has been formed, required sanction has been obtained from statutory authorities and sites are readily available in its disposal free from all encumbrances as on today. Hence the version of the OPs cannot be accepted. 10. In complaints No.708/10 and 709/10 the complainants have produced receipts in respect of Rs.1,25,000/-. OPs in its version admitted that each one of the complainants paid Rs.1,25,000/- towards membership fees. Admitted facts need not be proved. Hence the complainants are entitled for refund of Rs.1,25,000/- each along with interest. 11. In Complaint No. 708/10 OP issued letters of acceptance of membership of the complaint dated 07.05.2007, 12.05.2007 and 18.05.2007. In which OP stated that complimentary plot at Coconut groove will be allotted only on payment of full membership fees towards the Mr. Cool Card. Admittedly complainant has paid full membership fees of Rs.1,25,000/- on 05.05.2007 itself. In complaint No.709/10 OP issued letters dated 05.06.2007 and 11.08.2007 enclosing the membership card to the complainant. Having accepted full membership fees of the Rs.1,25,000/- on 30.05.2007 itself. OP failed to allot a site as promised. 12. Though OPs received such a huge amount from these complainants but failed to allot and register the complimentary sites as promised and failed to supply the basic information regarding the location of the plots details of the layout approved sanction plan etc., Though OP has stated in its version and affidavit that it has already issued on allotment letter infavour of the complainants on 31.08.2007 itself and copy of the said letter is produced. But in fact OP has not produced any letter along with version and affidavit as stated. Hence the defence of the OP cannot be accepted. Inspite of repeated requests and inspite of service of legal notice OP failed to respond. This act of the OP amounts to deficiency in service on the part of the OPs. We are satisfied that complainants are able to prove the deficiency in service on the part of the OPs. Under these circumstances complainants are entitled for certain reliefs. In our view justice will be met by directing the OPs to refund whatever the amount it has received from these complainants towards membership fees along with interest and litigation cost. Accordingly we proceed to pass the following: O R D E R The complaints are allowed in part. 1. In complaint No.708/2010 OPs are directed to refund Rs.1,25,000/- together with interest at the rate of 9% p.a. from 05.05.2007 till realization along with litigation cost of Rs.1,000/- to the complainant. 2. In complaint No.709/2010 OPs are directed to refund Rs.1,25,000/- together with interest at the rate of 9% p.a. from 07.05.2007 till realization along with litigation cost of Rs.1,000/- to the complainant. This order is to be complied within four weeks from the date of its communication. Send the copy of this order to both the parties free of cost. This original order shall be kept in the file of the complaint No.708/2010 and a copy of it shall be placed in other respective file. (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 30th day of September 2010.) PRESIDENT MEMBER MEMBER gm.

COMPLAINT FILED: 03.03.2010 DISPOSED ON: 30.09.2010 BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN) 30th SEPTEMBER 2010 PRESENT:- SRI.B.S.REDDY PRESIDENT SMT. M. YASHODHAMMA MEMBER SRI.A.MUNIYAPPA MEMBER COMPLAINT NOs. 708 & 709/2010 COMPLAINT NO.708/2010 COMPLAINANT COMPLAINT NO.709/2010 COMPLAINANT Sri. H.Srinivasa Son of H. Thimmegowda Aged about 38 years Residing at No.92/44 1st block Ganesha Temple Road Nandini Layout, Bangalore-560 051. Sri.S.Bettaswamy Son of Singaiah Aged about 45 years Residing at No.273,274 7th Cross, 4th main 2nd block Nandini Layout Bangalore-560 051. Advocate B.R.Prakash V/s OPPOSITE PARTIES 1. The Country Club Rep by its Managing Director (Branch office at) No.273, 1st main, defence Colony HAL II Stage, Indiranagar Bangalore-560 038. 2. The Country Club Rep by its Managing Director No.675, Old Syndicate Bank Road, 1st Stage, Indiranagar Bangalore-560 038. Advocate G A Gopi O R D E R SMT. M. YASHODHAMMA, MEMBER These are the complaints filed u/s. 12 of the Consumer Protection Act of 1986 by the respective complainants, seeking direction to the Opposite Parties (herein after called as O.P) to refund the amount paid towards Membership fees along with interest at 24% p.a. and compensation of Rs.2,00,000/- on the allegations of deficiency in service on the part of the OPs. As the OPs in both the complaints are common, the question involved relief claimed being the same in order to avoid repetition of facts and multiplicity of reasoning these two cases stand disposed of by this common order. 2. The brief averments as could be seen from the contents of these complaints are as under: Complainants being attracted to the offer made by OP thought of becoming members of OPs Club under the name and style Cool Card Membership. OPs accepted their membership and collected amount towards membership fees. OPs promised so many benefits including allotment of free sites. But thereafter some how OPs failed to keep up its promise. For no fault of their complainants were made to suffer both mental agony and financial loss. Under such circumstances complainants felt deficiency in service on the part of the OPs. For the convenience sake the card membership, amount claimed, membership number date of legal notice are noted below in the chart. When the repeated requests and demands made by the complainants have gone in vain they are advised to file these complaints and sought for the reliefs accordingly. Sl. No Complaint No. Card member ship Member ship No. Date & Receipt No. Amount Paid Date of Legal notice 1 708/10 Cool card Membership COLCG 448A 05.05.07 51384 05.05.07 10944 Rs.1,00,000 Rs. 25,000 Rs.1,25,000 18.02.2010 2 709/10 Cool card Membership COLCG 580A 08.05.07 91469 30.05.07 52634 Rs. 70,000 Rs. 55,000 Rs.1,25,000 18.02.2010 3. On appearance OP filed the version. The defence setout in all the complaints is almost identical and same. The brief averments made in the version are as under: According to OP the Plots allotted to the complainants under the Cool Scheme is complimentary gift to the membership and the member fee is collected for providing facilities. Now consideration has been collected for the allotment of the complimentary plot and complainants to bear only registration and maintenance charges; Complainants not paid any consideration. Hence they are not Consumers under the C.P. Act Hence complaints are not maintainable; OP has already issued an allotment letter infavour of the complainants allotting a complimentary sites bearing No.525 and 529 at Phase XVIII, Coconut Grove Situated at Madugiri Taluk, Tumkur District in favour of the complainant vide letter dated 31.08.2007; OP has asked the complainants to deposit registration and maintenance charge of Rs.15,000/- within 30 days from the issuance of the allotment letter; Complainants have not deposited the said amount inspite of several requests and reminders; Hence OP could not register the allotted sites in favour of the complainants. OPs ready to the register the site as soon as complainants deposits the registration charges; OP is in the business of hospitality; entire process for procuring and allotment of complimentary plots would be done by the sister concern of the OP. M/s. Amrutha Estates who had purchased several parcel of lands in infavour of its nominees, subsequently such nominees will execute necessary gift deeds in regards to the free complimentary plots in favour of the eligible members of OP. Complainants became the members of OP for the purpose of enjoying the facilities provided by the OP club not for the purpose of getting complimentary sites as alleged in the complaints. The place of the allotment of the complimentary site has been informed by the OP to all the members; There are several phases of Coconut Groove located in different parts of the Tumkur District and several phases of Vedic Spa/Banyan Tree located near Hindupur/Penukonda. The membership fee paid by the members is non-refundable since same would be utilized for development of the Clubs and resorts across the country; any order for refund would cause irreparable harm and loss to the OP wherein thousands of people are earning their livelihood; Membership is transferable and if the complainants want to transfer the membership they can do so; Complainants are enjoying facilities provided by the OP in their clubs; OP is well-known pioneered in making the club and resorts in and around the country and also having leading clubs and resorts across the country. Complainants are enjoying its facilities; OP has already allotted a complimentary sites and non registration of the complimentary plots due to the fault of the complainants; Among these grounds OPs prayed for dismissal of the complaints. 4. In order to substantiate the complaint averments, each one of these complainants have filed their affidavit evidence and produced receipts issued by OPs and correspondence made by OP. On behalf of OP Sri Vijay D.P. Senior Manager (Customer Care) of the OP filed his affidavit evidence and not produced any documents. Then complainants submitted their written arguments. Heard oral arguments from the complainants. Taken as heard from OP side. 5. In view of the above said facts, the points now that arise for our consideration in these complaints are as under: Point No.1:- Whether the complainants have proved the deficiency in service on the part of the OPs? Point No.2:- If so, whether the complainants are entitled for the relief now claimed? Point No.3:- To what Order? 6. We have gone through the pleadings of the parties both oral and documentary evidence and the arguments advanced. In view of the reasons given by us in the following paragraphs our findings on: Point No.1:- In Affirmative. Point No.2:- Affirmative in part. Point No.3:- As per final Order. R E A S O N S 7. At the outset it is not in dispute that the complainants became the members of the OPs scheme as noted in the chart. The OPs accepted their membership and allotted certain number. It is also not in dispute that OPs accepted the membership fees of Rs.1,25,000/-from each of the complainants. Now the main grievances of these complainants is that though OPs collected the membership fees failed to provide the facilities offered and to allot and register the complimentary sites in their favour as promised. 8. According to complainants OPs promised them to allot complimentary sites only on payment of full membership fees. Complainants with a sole intention of getting the complimentary sites became the member of the OPs Club. The receipts issued by the OPs are produced. Inspite of repeated requests and even after service of demand notice dated 18.02.2010 OPs failed to fulfill its promises and to extend the services offered. Both oral and documentary evidence produced by these complainants support their cases. There is nothing to discard their sworn testimony. 9. As against this unimpeachable evidence of the complainants; the defence of the OP that whatever club membership fees paid is non-refundable has no basis. It is further contended by the OP that even now they are ready to execute the sale deed with respect to complimentary sites, if complainants pay required registration fee and stamp duty. But there is no basis for this defence. OPs have not produced any documents to show that layout has been formed, required sanction has been obtained from statutory authorities and sites are readily available in its disposal free from all encumbrances as on today. Hence the version of the OPs cannot be accepted. 10. In complaints No.708/10 and 709/10 the complainants have produced receipts in respect of Rs.1,25,000/-. OPs in its version admitted that each one of the complainants paid Rs.1,25,000/- towards membership fees. Admitted facts need not be proved. Hence the complainants are entitled for refund of Rs.1,25,000/- each along with interest. 11. In Complaint No. 708/10 OP issued letters of acceptance of membership of the complaint dated 07.05.2007, 12.05.2007 and 18.05.2007. In which OP stated that complimentary plot at Coconut groove will be allotted only on payment of full membership fees towards the Mr. Cool Card. Admittedly complainant has paid full membership fees of Rs.1,25,000/- on 05.05.2007 itself. In complaint No.709/10 OP issued letters dated 05.06.2007 and 11.08.2007 enclosing the membership card to the complainant. Having accepted full membership fees of the Rs.1,25,000/- on 30.05.2007 itself. OP failed to allot a site as promised. 12. Though OPs received such a huge amount from these complainants but failed to allot and register the complimentary sites as promised and failed to supply the basic information regarding the location of the plots details of the layout approved sanction plan etc., Though OP has stated in its version and affidavit that it has already issued on allotment letter infavour of the complainants on 31.08.2007 itself and copy of the said letter is produced. But in fact OP has not produced any letter along with version and affidavit as stated. Hence the defence of the OP cannot be accepted. Inspite of repeated requests and inspite of service of legal notice OP failed to respond. This act of the OP amounts to deficiency in service on the part of the OPs. We are satisfied that complainants are able to prove the deficiency in service on the part of the OPs. Under these circumstances complainants are entitled for certain reliefs. In our view justice will be met by directing the OPs to refund whatever the amount it has received from these complainants towards membership fees along with interest and litigation cost. Accordingly we proceed to pass the following: O R D E R The complaints are allowed in part. 1. In complaint No.708/2010 OPs are directed to refund Rs.1,25,000/- together with interest at the rate of 9% p.a. from 05.05.2007 till realization along with litigation cost of Rs.1,000/- to the complainant. 2. In complaint No.709/2010 OPs are directed to refund Rs.1,25,000/- together with interest at the rate of 9% p.a. from 07.05.2007 till realization along with litigation cost of Rs.1,000/- to the complainant. This order is to be complied within four weeks from the date of its communication. Send the copy of this order to both the parties free of cost. This original order shall be kept in the file of the complaint No.708/2010 and a copy of it shall be placed in other respective file. (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 30th day of September 2010.) PRESIDENT MEMBER MEMBER gm.