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Holiday resorts firm told to refund deposit

Correspondent

It should refund the entire amount to the complainant by July 15 next

CUTTACK: The Orissa Consumer Disputes Redressal Commission on Thursday directed the Sterling Holiday Resorts to refund the amount deposited by a customer in 1995 while purchasing the time-share of the hotel. It was also asked to pay a compensation of Rs 15,000 to the customer for causing mental agony and pay Rs 5000 towards the cost of the case.

Commission president Justice R K Patra and member Subhash Mahatab in judgment asked the company which runs a chain of holiday resorts in the country and abroad to refund Rs 55,000 with nine percent interest from June 1996. It should refund the entire amount to the complainant by July 15 next failing which interest would be charged on the compensation and cost amount, the judgment said.

Lipi Mohanty, daughter of a former Orissa High Court judge, had booked time-share of the resort by paying Rs 55,000 for annual holiday packages. As per the conditions, Ms Lipi and her family members were entitled to enjoy at the Puri resort at least seven days in a year for 99 years beginning from 1996.

Although, the hotel management continued to assure Ms Lipi that she and her family members would get quality services at the resort, the holiday package never materialized until 1998. In 1998, the management acknowledging the inconvenience and deficiency of services, offered Mohanty to avail the time-share of 1996 and 1997 along with that of 1998. But in June 1998, the hotel authorities told Ms Lipi that their Puri resort was temporarily closed for repair work and asked her to choose any other resort of the company.

She however, refused to accept the suggestion and insisted that her time-share for the years 1996 and 1997 be sold to any other customer at market price and the differential amount be adjusted in her account. As she did not get any response from the hotel authorities, she moved the State Consumer Forum in 2003 demanding refund of her initial deposit with 18 percent interest. She also claimed a compensation for mental agony and financial loss. Hearing the case for nearly four years, the forum held that inability to accommodate the complainant during the allotted weeks at Puri amounts to deficiency of service on the part of the company. "We direct the company to refund the deposit of the customer with nine percent interest from June 1996. The complainant is also entitled for compensation and cost of the case", the forum said.

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