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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
V.B. Gupta, Presiding Member and Rekha Gupta, Member
CONTOUR HOLIDAY RESORTS PRIVATE LTD. - Appellant
Versus
K.N. BHUVANENDRANATHA KAMATH - Respondent
Revision Petition No. 393 of 2012 along with I.A. No. 1 of 2012 (for Stay) against Order dated 21.10.2011 in First Appeal No. 254 of 2011 of Kerala State Consumer Disputes Redressal Commission, Thiruvananthapuram
Decided on : 07-03-2013

Advocates Appeared:
Mr. Jogy Scaria, Advocate, for the Appellant; None., for the Respondent

Unilateral cancellation of a booking causing mental agony and suffering may constitute deficiency in service and unfair trade practice, warranting punitive damages.

Headnote:

Consumer Protection Act - Breach of Contract - 1986, Section 21(b)

Fact of the Case:

The respondent booked a convention center for his daughter's marriage, paid an advance, and sent out invitations. The petitioner, the owner of the convention center, unilaterally cancelled the booking to accommodate another client, causing mental agony and humiliation to the respondent and his family.

Finding of the Court:

The court found that the petitioner's act amounted to deficiency in service and unfair trade practice, causing mental agony and suffering to the respondent and his family. The court dismissed the revision petition and imposed punitive damages of Rs. 50,000 on the petitioner.

Issues: Breach of contract, deficiency in service, unfair trade practice, entitlement to compensation, and punitive damages.

Ratio Decidendi: The unilateral cancellation of the booking by the petitioner, causing mental agony and suffering to the respondent and his family, constituted deficiency in service and unfair trade practice, warranting punitive damages.

Final Decision: The court dismissed the revision petition and imposed punitive damages of Rs. 50,000 on the petitioner.

ORDER

V.B. Gupta, Presiding Member - Being aggrieved by order dated 21.10.2011, passed by Kerala State Consumer Disputes Redressal Commission, Thiruvananthapuram (for short, 'state Commission') petitioner has filed this revision petition.

2. Brief facts are that on 11.1.2008, respondent/complainant booked Contour Convention Centre for conducting marriage of his daughter to be held on 18.5.2008. Out of the rental of Rs. 50,000 he paid a sum of Rs. 25,000 as advance on the same date and receipt was obtained. The marriage invitation card was printed and sent to the relatives and friends. On 16.2.2008, respondent received a letter from the petitioner/opposite party informing that the auditorium has been given on hire to somebody else for 18.5.2008. A Pay Order for Rs. 25,250 was also enclosed. However, name was wrongly mentioned deliberately in the pay order. Mr. Somanadhan Nair, retired principal of N.S.S. College, Changanacherry met the respondent and offered him compensation to shift the venue of the marriage from the Contour Convention Centre for which respondent did not agree. Along with letter of the petitioner, there was also a copy of caveat as petitioner apprehended that respondent may approach the Court of Law. Respondent filed a suit before Munsiff Court for permanent prohibitory injunction reserving the right to move the appropriate Forum. But same was dismissed as matter related to breach of contract. The respondent had to conduct marriage in a comparatively small hall in a hurry. The loss and mental agony caused to respondent and his family cannot be expressed in the terms of the money. Respondent felt humiliated in front of all the invitees, friends, relatives and the in-laws family. Thus, he was unable to conduct a smooth and nice marriage function of his only daughter who is a professional engineer. The act of the petitioner amounts to deficiency of service, unfair trade practice and due to petitioner's wrongful and deficient act, respondent has suffered great mental agony and as such is entitled for compensation. Accordingly, respondent filed complaint and sought a compensation of Rs. 2,00,000 apart from return of the amount paid.

3. Petitioner in its written version took the plea that construction of particular auditorium along with a Hotel Complex was expected to be completed in November, 2007. It is further stated that during October, 2007, petitioner in course of his business trip to Bangalore met one Muraleedhar, a businessman at Bangalore who contacted him as he wanted the auditorium for conducting his daughter's marriage on 18.5.2008. He paid an advance of Rs. 25,000 also, but due to his busy business schedule petitioner forgot to inform the above booking to his office at Changanacherrry. Whenever he was away, he used to entrust signed blank cheques and signed letter heads at his office at Changanacherry, which is managed by a chartered accountant. It was without having knowledge of the booking of Mr. Muraleedhar, his office staff provided a booking to the respondent in January, 2008. Immediately, on knowing about the above booking, he took steps to cancel the same and return the amount. The matter was also informed to Mr. Somanathan Nair, the retired principal of N.S.S.College, who is a near relative of Mr. Muraleedhar. As Mr. Muraleedhar has booked the auditorium in October, 2007, he had no other alternative but to provide the auditorium to Mr. Muraleedhar. Rest of the allegations of the complaint were denied.

4. District Forum, vide order dated 26.2.2011, allowed the complaint and granted following reliefs to the respondent:

"(a) Opposite party is ordered to pay the petitioner an amount of Rs. 75,000 as compensation for the loss and sufferings sustained to the petitioner due to the breach of agreement between the petitioner and opposite party;

(b) Opposite party is ordered to refund the petitioner the advance amount of Rs. 25,000 with interest at the rate of 9% from the date of booking till realization, and

(c

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