A family that paid ₹28,000 for a one-year holiday membership but could not avail even a single vacation has been granted relief from the district consumer disputes redressal commission, Mohali which directed a holiday club to refund the entire amount with interest after holding it guilty of deficiency in service and unfair trade practice.
The commission also directed CRI Club Private Limited to pay ₹15,000 as compensation for mental agony, harassment and litigation expenses.
The complaint was filed by Sikandar Singh, a resident of Sector 89, Mohali, who purchased a one-year holiday membership from the company on May 26, 2023 for ₹28,000. The package included seven days of holiday stay along with a complimentary three-days, two-nights stay at any hotel or resort from the company’s approved list.
According to the complaint, the company initially told him that the complimentary stay required a 45-day advance booking but later assured him that, after purchasing the membership, he could avail it by giving only three days’ notice.
The complainant planned a family trip to Shimla from June 2 to June 4, 2023, and requested accommodation at a hotel in Shimla. However, the company informed him that the property was unavailable and instead offered accommodation at a hotel in Shoghi. Sikandar Singh refused the offer, stating that he had planned his vacation in Shimla. He alleged that despite repeated emails, personal visits and telephonic discussions, the company neither arranged accommodation in Shimla nor refunded the membership amount.
The company denied any deficiency in service and argued that the complainant had failed to comply with the terms of the complimentary voucher, including the requirement of prior notice and payment of administration charges. It also relied on the agreement’s ‘free look period’, under which a member could cancel the membership within 10 days after deduction of ₹15,340 as administrative charges.
{{/usCountry}}The company denied any deficiency in service and argued that the complainant had failed to comply with the terms of the complimentary voucher, including the requirement of prior notice and payment of administration charges. It also relied on the agreement’s ‘free look period’, under which a member could cancel the membership within 10 days after deduction of ₹15,340 as administrative charges.
{{/usCountry}}After examining the record, the commission held that the company’s own documents showed it had waived the original requirement of giving 45 days’ notice. It also observed that the correspondence between the parties did not indicate that the booking had been declined because the complainant violated the voucher conditions. Instead, the company only stated that accommodation in Shimla was unavailable and repeatedly persuaded the complainant to accept a hotel in Shoghi.
The commission further held that deducting more than half the membership amount during the so-called free look period defeated the very purpose of offering such an option and amounted to an unfair contractual term.
Holding the company deficient in service, the commission directed it to refund ₹28,000 with 9% annual interest from May 26, 2023, within 30 days. It ruled that if the company fails to comply within the stipulated period, the refund amount will carry 12% annual interest until payment is made.