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Synopsis

The District Consumer Dispute Redressal Commission-1, Lucknow has recently directed Le Meridien Jaipur Resort & Spa to pay Rs 25 lakhs to a retired Colonel. 

In December 2020, Dr. Colonel Ajay Bahadur, a veteran army officer, from Lucknow booked Le Meridien Resort, Jaipur for his daughter's wedding through his agent Mr. Arun Jindal. The marriage was scheduled from November 17 to November 23, 2021. The total cost of the said booking amounted to Rs. 67,90,900. Colonel Bahadur made an advance payment of Rs 30 lakhs for the bookings. Allegedly, he was informed by the resort that if he canceled the booking within 30 days of the booked date, his entire deposit would be refunded.

Due to the COVID-19 pandemic, the wedding was canceled. On June 10, 2021, Colonel Bahadur notified the resort of the cancellation and was assured that his deposit would be refunded.

However, on June 23, 2021, the resort informed Colonel Bahadur via email that his deposit would not be refunded.

Colonel Bahadur claimed that the refusal to refund his deposit caused him significant mental and physical sufferings. He argued that the cancellation was due to circumstances beyond his control, and therefore, the resort had no right to forfeit the entire deposit.

Consequently, he filed a complaint with the Consumer Commission under Section 35 of the Consumer Protection Act, 2019. He sought a refund of Rs 30 lakhs with 18% interest, along with an additional Rs 10 lakhs in compensation for the mental and physical suffering he endured.

In response, the resort argued that the booking contract was made with Arun Jindal, not Colonel Bahadur. Therefore, they contended that Colonel Bahadur had no legal standing to file the present claim. It also questioned the jurisdiction of the District Consumer Dispute Redressal Commission, Lucknow to settle the issue. 

Furthermore, the resort contended that since a contract had been entered into between the parties, the matter was no longer a consumer dispute.

Additionally, the resort claimed that the wedding was not canceled due to the COVID-19 pandemic but for other reasons. They asserted that at the time of the contract, the opposing party was informed that in the event of a cancellation, the entire amount would be forfeited.

Therefore, asserting that there had been no deficiency of service on their part, the resort opposed the claim for a refund and compensation.

The Commission, led by Neelkanth Sahay and including members Kumar Raghvendra Singh and Sonia Singh, observed that the resort did acknowledge that Arun Jindal had acted as an agent for Colonel Bahadur. They noted that Mr. Jindal initially deposited Rs 14 lakhs at the time of the contract, while the remaining amount was deposited later by Colonel Bahadur from Lucknow.

Therefore, the Commission recognized Colonel Bahadur as a consumer with the legal standing to file the present claim.

Regarding jurisdiction, the Commission noted that since Rs 16 lakhs had been deposited by Colonel Bahadur from his residence in Lucknow, the District Commission in Lucknow had the appropriate jurisdiction.

Additionally, the Commission observed that five months before the planned wedding date, the pandemic was at its peak, and the bride's grandmother had passed away.

It highlighted that as Colonel Bahadur was Hindu, it was customary that when a death occurs in a Hindu family, no auspicious ceremonies are held for the subsequent one year.

Furthermore, the Commission emphasized that this was not a case where services had been utilized and then the agreement was canceled with a demand for a refund.

Therefore, the Commission ruled that it would be reasonable for Rs 25 lakhs out of the total Rs 30 lakhs to be returned to Colonel Bahadur, while the remaining Rs 5 lakhs could be retained by the resort for the benefit of the business.

Accordingly, the Commission directed Le Meridian, Jaipur to pay an amount of Rs. 25,00,000 at 9% p.a. from the date of payment made by Colonel Bahadur to the date of judgment within 45 days.

Advocate Akhand Vikram Singh appeared and argued the case on behalf of Colonel Bahadur.

Case Title: Dr. Colonel Ajay Bahadur v. Le Meridian, Jaipur Resort & Spa