30-Year Promised Membership Validity Reduced To 5 Years, Chandigarh District Commission Holds Country Club Hospitality And Holidays Liable

Brief Facts:

The Complainant acquired a five-year membership of Country Club Hospitality and Holidays Limited (“Country Club”) for Rs. 60,000/- and paid an additional Rs. 8,500/- as the first year's annual maintenance charges. Later, the Complainant was persuaded by Country Club's representative to upgrade the membership to 30 years, for which he paid Rs. 65,000/-. However, despite assurances of a 30-year membership, the membership card received by the Complainant only indicated a five-year validity. The Complainant made several attempts to rectify the situation, including requests for booking free holidays but didn't receive a satisfactory response. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission-I, U.T. Chandigarh (“District Commission”) and filed a consumer complaint against Country Club.

In response, Country Club argued that the Complainant could have utilized vacation benefits immediately upon full payment, regardless of the receipt of the membership card. Additionally, it pointed out clauses in the agreement detailing different membership plans and associated holiday terms, emphasizing that the Complainant opted for a 30-year plan, which entails certain fees according to the agreement's terms. It refuted the Complainant's claims and prayed for the dismissal of the complaint.

Observations by the District Commission:

The District Commission noted that the Sale Agreement explicitly stated that Country Club extended the membership from five years to thirty years upon receipt of Rs. 65,000/- from the Complainant. It noted that the Sale Agreement also outlined a thirty-year term for holiday benefits under the platinum category. However, despite acknowledging receipt of the additional payment for the extended membership duration, it issued a new smart card indicating a validity period of only five years, failing to honour the agreed-upon thirty-year membership period. Therefore, the District Commission held Country Club liable for deficiency in service and unfair trade practices.

Consequently, the District Commission directed Country Club to refund Rs. 1,33,500/- to the Complainant along with interest at the rate of 9% per annum from May 23, 2019, when the initial request for cancellation and refund was made, until the date of payment. Additionally, Country Club was directed to cancel the Complainant's membership and pay a compensation of Rs. 10,000/- to the Complainant for mental agony and harassment and Rs. 10,000/- for the litigation costs.

Case Title: Pawan Katyal vs Country Club Hospitality and Holidays Limited and Others

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