Is non-refundability before receiving a product legal in India
Sir,
I have a signed an agreement with Country Vacations International on Rs. non judicial bond paper by paying Rs. 1,70,000 for a membership. They have even promised a complimentary plot of 1350 sft as part of this membership. In that agreement it is mentioned that the amount is nonrefundable once paid and the agreement cannot be cancelled. I have paid the money just yesterday. I have not received membership card or other complimentary things promised by them yet. I wanted to cancel the agreement and have sent an email to their customer care address requesting for refund. I have heard from several sources on internet that nonrefundability before receiving the product is unfair trade practice and Supreme Court has reported in AIR1986 (SC) 1571. Am I entitled for a refund?
Thank you.
Asked 10 years ago in Business Law
Decision to go for cancellation within less than 12 hours:
When I was in their office, they gave me an offer of membership and associated complimentary plot valid only for that day. There was not enough time to read through each and every term and condition. It would take more than a day to understand all the details for ordinary people like us. So I trusted what they orally said to me and signed the agreement and make payment through credit card for Rs. 1,60,000 and cash of Rs. 10,000. After going home, I read reviews on internet about the differences in what they orally said and what is in the agreement. I also read that claim for refund should be made by sending a letter to their office as soon as possible (something called cooling off period). I was in a panic and did what I could to get refund based on stories on internet - like sending emails requesting cancellation to the company as well as my credit card bank, sending speed post to the company requesting cancellation.
I decided to take their offer yesterday when they told me orally that I have an option to resell the complimentary plot to the company itself after one year at Rs. 1,25,000, without any condition. I later found after going home that, it is not written in the agreement. After reading latest newspaper report about the company, I wanted to cancel the agreement although it is clearly mentioned in the agreement that it is not possible to do so. Please look at this URL:
http://www.deccanherald.com/content/16711/police-direct-country-club-refund.html
I again went to their office today to get clarifications. I was told that when I receive welcome kit by courier, I will find the statement mentioning option to sell the plot to the company at Rs. 1,25,000 after one year without any condition. I requested a sample copy of welcome kit they distribute under such offers. They told me that they can provide me one on 8th of this month. What if it did not contain that clause?
The agreement signed by me also mentions that the company cannot honor what the sales staff tell orally to me. I am really worried about what possible legal steps I can take in order to get my money back? If I have some kind of evidence (video/audio) of their orally made statements, will it help?
Asked 10 years ago