Northeast Delhi Commission Holds Country Inn And Suites Liable For Failure To Provide Benefits Under Its 5-year Membership Worth Rs. 40k

Brief Facts:

The Complainant was allegedly lured by Country Holidays Inn & Suites Pvt. Ltd. to attend a promotional event at its collection office. During this event, the Complainant was promised complimentary holiday vouchers for a hotel stay and movie tickets. However, upon attending the venue, the Complainant was pressured into purchasing a 5-year membership, allegedly by an agent named Mr. Zunaid, with promises of additional benefits. The Complainant and his spouse reportedly signed an unfilled form under verbal explanations of the terms and conditions, without being allowed to review the membership purchase agreement. A total payment of Rs. 40,440/- was made through cash and debit card to Country Holidays Inn. Subsequently, upon discovering discrepancies between the verbally explained terms and the written agreement, the Complainant sought cancellation of the membership but faced refusal and unresponsiveness from Country Inn despite repeated attempts via emails and written communication. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, North-East Delhi (“District Commission”) and filed a consumer complaint against Country Inn.

In response, Country Inn argued that the Complainant willingly paid the membership charges and was issued a receipt. It contended that the jurisdiction of the District Commission was inappropriate for this matter since neither the head office nor the operational office of the Country Inn is within its jurisdiction. Additionally, it asserted that the Complainant and his spouse signed the agreement after allegedly being fully satisfied and having reviewed its contents. It argued that the Complainant's allegations were false and motivated by ulterior motives.

Observations by the District Commission:

The District Commission noted that the Complainant was coerced into purchasing a 5-year membership without being allowed to review the terms and conditions properly. The Complainant paid Rs. 40,440/- on the assurance that he could cancel the membership if desired. However, when attempting to avail the benefits, the District Commission noted that Country Inn refused.

The District Commission held that the transaction, including the payment and receipt of Rs. 40,440/- for the membership, occurred at a location within the jurisdiction of the District Commission. It noted that Country Inn did not contest receiving the payment or providing the holiday voucher initially promised. Moreover, it failed to provide any valid justification for its refusal to honour the promised benefits.

Therefore, the District Commission held Country Inn liable for deficiency in services. Consequently, the District Commission directed Country Inn to refund the Complainant Rs. 40,440/- jointly and severally, with interest at a rate of 9% per annum from the date of filing the complaint until the amount is recovered. Additionally, it was ordered to pay Rs. 20,000/- jointly and severally to the Complainant as compensation for mental harassment and litigation expenses, along with interest at the same rate from the date of this order until the amount is recovered.

Case Title: Suresh Chandra Aggarwal vs Collection Centre Country Holidays Inn & Suites Pvt. Ltd.

Case Number: Complaint Case No. 266/22

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