Refund: Club Ordered To Refund 80k For Canceled Membership |

Chandigarh: The Consumer Disputes Redressal Forum has ordered Rs 80,000 refund with 6% interest per annum on failure to cancel a luxury holiday package (LHP) membership. The complainants alleged that representatives of Club Resorto Hospitalitywith offices at 307, 3rd Floor, Bestech Business Tower, Sector 66A, Mohali, and 804A, 805, 806, 807, Skylark Building 60, Nehru Place, New Delhi, invited them to Hotel James Plaza, Chandigarh, to discuss memberships.
Following the visit on November 17, 2019, the complainants signed up for a five-year membership and paid Rs 80,000. As per the membership terms, an annual fee of Rs 9,999 was to be paid for the next five years.

However, the complainants soon realized they could not continue the membership due to other family expenses. On November 18, 2019, they sent a letter by courier, and emailed it, requesting cancellation and a refund.
The opposite parties responded on November 19, 2019, stating that the request had been forwarded to the team concerned and promised a response within 5-7 working days. Nothing happened, and so the complainants sent another registered letter on November 28, 2019, reiterating their request for cancellation and refund.
On December 20, 2019, the opposite parties proceeded to illegally approve their membership. Left with no other option, the complainants sent a legal notice on January 1, 2020, but they did not respond. The complainants argued that under clause 7 of the agreement, the opposite parties were obliged to refund the full amount.
They claimed this failure constitutes a deficiency in service and unfair trade practice. The opposite parties did not dispute the key facts of the case but argued that the membership was confirmed upon payment. The court, however, found that the opposite parties had failed to cancel the membership within the stipulated 10-day period, as per the terms of the agreement.
In its ruling, the court directed the opposite parties to cancel the complainants’ membership and refund Rs 80,000, with 6% interest from November 19, 2019, the date of the cancellation request. The opposite parties have been given 60 days to comply with the order.

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