Treebo Hotels has been found guilty of deficiency in service by Mumbai Suburban Additional Consumer Dispute Redressal Commission for causing severe inconvenience to a group of retired Balmer Lawrie employees during their planned family reunion at Indus Valley Resort, Lonavala, in 2018. The booking, facilitated through Treebo Hotels, led to a legal dispute after the group was denied entry to the resort despite having made advance payments.
The complainants, Vijay Rayamane and Kaustubh Rayamane, who resides in Andheri, were one among the a group of senior citizens, who had booked their stay through Treebo Hotels for a family gathering at Indus Valley Resort in Lonavala. They transferred total advance amount of Rs 1,50,000 to Treebo Hotels, so as to secure the booking. However for the complainant’s surprise, Indus Valley Resort refused to accommodate the group, citing non-receipt of payment from Treebo Hotels. The denial caused significant distress, forcing the complainants to make last-minute alternative arrangements at Saubhagaya-In-International Resort in Pen, located 30 kilometers away. This resulted in additional expenses of Rs 1,00,000, including Rs 60,000 for food and beverages and Rs 40,000 for transportation.
In its defense, Treebo Hotels argued that the complainants had no direct consumer relationship with it, as Treebo acted as a marketing service provider in the budget accommodation sector for Balmer Lawrie & co. Treebo claimed that Indus Valley Resort was not part of its network and that they had facilitated the booking as a goodwill gesture for their corporate client. The company maintained that they were not liable for the actions of non-network hotels. Treebo further asserted that it had paid Rs 1,86,000 to the resort but incurred a loss of Rs 50,000 and had no direct responsibility for the booking issues.The company maintained that it should not be held responsible for the resort’s actions and further alleged that the complainants had approached the commission with “unclean hands” by failing to show up for the booking on August 17, 2018.
However, the commission rejected Treebo’s defense, stating that documentary evidence clearly indicated a privity of contract between the complainants and Treebo Hotels. The commission noted that Treebo had accepted the payments made by the complainants through Balmer Lawrie & Co. and failed to provide evidence to substantiate its claims regarding unpaid consideration. The commission also found that Treebo had not forwarded the payments to Indus Valley Resort, which directly led to the complainants being denied entry and incurring additional expenses.
The commission further held that Treebo Hotels was responsible for the inconvenience caused to the complainants and ordered them to pay Rs 1,50,000 with six percent interest from August 2018. Additionally, Treebo was directed to compensate the complainants with Rs 1,00,000 for the mental agony and litigation charges they endured due to the incident.
