Delhi District Commission Holds Country Holidays Inn & Suites Liable For Arbitrary Withholding Of Amount Paid Under Holiday Membership Package
The Delhi District Consumer Disputes Redressal Commission (West) has held Country Holidays Inn & Suites liable for withholding the holiday membership amount of the complainant even when no holiday stays were booked by him under the package. The bench presided by President Sonica Mehrotra, Member Richa Jindal and Member Anil Kumar Koushal has observed that forfeiting such hard...
The Delhi District Consumer Disputes Redressal Commission (West) has held Country Holidays Inn & Suites liable for withholding the holiday membership amount of the complainant even when no holiday stays were booked by him under the package. The bench presided by President Sonica Mehrotra, Member Richa Jindal and Member Anil Kumar Koushal has observed that forfeiting such hard earned money of the complainant amounts to undue enrichment to the hotel and is an unfair trade practice.
Brief background:
The complainant had taken a holiday package from Country Holiday Inn & Suites by paying a sum of Rs. 2,00,000 along with Rs. 8000/- per year as Annual Maintenance Charges for two years. As per the said package, the complainant was to get a stay of 7 days 6 nights including breakfast at any place in the world for the next 30 years. The complainant was assured that he does not have to pay any extra charges at the time of the hotel stay. According to the refund policy, if the complainant was dissatisfied with the package services, he was permitted to cancel the membership within 7 days of availing first holiday. It was stated that when the complainant contacted the hotel for making a booking under the package, he was informed that there is no breakfast facility available and the complainant was required to pay for the same. The said issue was also raised with the hotel via email by the complainant but his grievance was not resolved.
Therefore, without availing any holiday stay, the complainant sought cancellation of his membership. However, the hotel neither cancelled it nor refunded the amount of Rs. 2,16,000/- paid by the complainant. Moreover, the hotel asked for a further payment of Rs. 90,000/- failing which, the previous amount of the complainant will be forfeited. The complainant also filed a complaint with the National Consumer Helpline but no response was received. Hence, the complainant filed a complaint in the Consumer forum praying for appropriate compensation.
No one appeared on behalf of the hotel despite service of notice. Hence, the bench proceeded with the matter ex parte.
Observations:
The bench relied on the judgment of Country Club Fitness and Vacations vs Bijender Singh Budwar [SCDRC Chandigarh] wherein it was observed that where it cannot be proved that cancellation of membership results in any loss to the club, withholding of membership fee would not be tenable and amount to undue enrichment to the club. It was further observed that forfeiture of the entire amount especially when no services have been availed by the complainant would be unreasonable and unfair which is against the interests of the consumers.
Since the hotel did not contest the proceedings, the bench considered it as a deemed admission of deficiency in service on their part. Hence, the bench held the hotel liable for being deficient in not refunding the amount of the complainant. Given that no services have been availed by the complainant under the holiday package offered by the hotel, withholding of his hard earned money is an act of unfair trade practice and amounts to undue enrichment to the hotel.
Thus, the complaint was allowed with the following reliefs:
- Refund of membership amount of Rs. 2,16,000/-
- Rs. 5000/- as compensation towards mental agony
- Rs. 5000/- as litigation expenses
Case Title: Astha Gupta vs Country Holidays Inn & Suites
Case Number: Complaint Case 127/2022 [ Delhi district commission, West]