Complaint against Chandigarh Club for charging subscription fee junked

The District Consumer Disputes Redressal Commission, Chandigarh, has dismissed a complaint against Chandigarh Club for charging subscription fee from members for the months during which the club was closed due to corona pandemic.

The commission said that the subscription charges imposed by the club, which is collectively run by its members, could not be equated with payment/consideration made for services availed of by consumers on the basis of payment. A person who becomes a member of a club not only enjoys the facilities and amenities, but also enjoys reputation and status in society. Hence, his approach should be liberal to meet such kinds of expenses for smooth, uninterrupted and regular functioning of the club.

One of the members of the club, Divanshu Jain, had filed the complaint before the commission, terming the act of the management illegal and an unfair trade practice.

Jain in the complaint said that due to the pandemic the club had remained closed for months as per the orders issued by the Administration.

He said the members had been restrained from using any service of the club in any manner. But despite this, the club sent him the e-bill on April 30, 2020, wherein subscription charges had been levied for the months of April and May 2020 along with GST and the same had been also deducted from the advance paid by the complainant to the club.

However, Ranjan Lohan, counsel appearing for Chandigarh Club, justified the action of the club. He said that the club was functioning on a no profit, no loss basis. Every member contributes to the assets of the club and is required to pay monthly subscription fee as per rules regularly to maintain and manage the affairs of the club for its smooth functioning and other related activities.

After hearing the arguments, the commission comprising Amrinder Singh Sidhu, president, and BM Sharma, member, said that the subscription charges imposed by the club, which is collectively run by its members, could not be equated with payment made for services availed of by consumers on payment basis. In view of the above discussion, the consumer complaint is hereby dismissed.

Chandigarh