Refund of advance paid for kalyana mantapam

Gurumoorthy.V (Querist) 31 May 2020 This query is : Resolved
Sir
I booked a kalyanamantap for date 2-7-2020 at chennai.My son who has to come from USA for his son's upanayanam could not come here due to Corona outbreak both in India and USA.So I cancelled the booking as early as May 4 th of 2020 through SMS to the Mantap owner. Now the mantap owner refuses to refund the advance of Rs 25000 paid during Feb 2020.What is the recourse to me and if so what is the proceedure and can I get back the full refund.Please enlighten me
Gurumoorti

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Quick Summary

A user paid an advance for a kalyana mantapam booking but had to cancel due to the COVID-19 outbreak preventing a family member from travelling. The mantapam owner is refusing to refund the advance payment. Advice suggests exploring legal avenues like the Consumer Forum, as the situation might be considered a 'frustrated contract' under Section 56 of the Contract Act, potentially entitling the user to a refund under Section 65.

Raj Kumar Makkad (Expert) 31 May 2020
Have you executed any agreement or settled in writing the terms of the booking including the consequences of the cancellation. If yes, then act accordingly and if not then personally meet him and try to settle the issue. You may take help of some VIP person of the locality.

Dr J C Vashista (Expert) 01 June 2020
Sort out the problem amicably.
if the settlement is not possible issue notice for refund of money.

Sudhir Kumar, Advocate (Expert) 01 June 2020
prima-facie you have no right to refund as he never refused services to you. You could not avail so due to reasons beyond his control.

There is a clear example tow cases taught in first year of LLB in contract law.

1. One let out his balcony to someone to watch a procession and procession did not take place but he was held entitled to rent. Your case is such.

2. One lets out his auditorium for a function and auditorium was destroyed by fire. He was held not liable for rent. Your is not the case.

Sudhir Kumar, Advocate (Expert) 01 June 2020
So as suggested above only social remedy is there. Law will come to no help of your rather law will help him to recover balance expenditure.

P. Venu (Expert) 01 June 2020
Has the marriage also been postponed/cancelled?

K Rajasekharan (Expert) 01 June 2020
This seems to be what is called a 'frustrated contract' where Section 56 of the contract act would apply.

'Frustration of a contract' makes the contract void, and discharges the parties of the contractual obligations.

However, under Section 65 of the Act when an agreement has become void, the person who has received any advantage under such agreement is 'bound' to restore it or to make compensation for it, from whom he received it.

The section applies to contracts rendered void by frustration, occured without the fault or control of either party during Covid lockdown period too.

Kindly examine this aspect with the help of a local lawyer, learned in commercial/contract law. This is an under utilised and less known area for our ordinary lawyers.

An article published by me to provide an overview of this kind of issue, is available at http://lawwatch.in/2020/04/18/force%20majeure/

Raj Kumar Makkad (Expert) 01 June 2020
I do agree with the wise advice of expert Rajasekharan.

Rajendra K Goyal (Expert) 02 June 2020
Please refer the terms and conditions of booking.
What were the conditions for refund entitlement in case booking is cancelled by your side?
If under the agreed terms, the amount should be refunded, you are entitled.
Show all documents to local lawyer and may file case for recovery if agreed terms so warrant.

Gurumoorthy.V (Querist) 30 June 2020
The mantapam owneragrees for refund but he is not specifying the date. He says that the refund will be made only after the pandemic situation goes off or else as soon as he receives money.Is it correct to take when there is no specific committment on the part of him Please enlighten
Gurumoorti

P. Venu (Expert) 30 June 2020
If so, you may try to get the assurance from him in writing.

Rajendra K Goyal (Expert) 30 June 2020
You can get a post dated cheque if he agrees to repay.

Gurumoorthy.V (Querist) 08 August 2020
Is there any time limit to take legal action to get back the amount of advance paid?

P. Venu (Expert) 08 August 2020
The ideal remedy would be in approaching the Consumer Forum. The complaint could be filed within a period of two years.

Rajendra K Goyal (Expert) 08 August 2020
Complaint in consumer forum should be preferred as it is cheaper and faster. It can be filed in 2 years.

For refund through civil court may be more costly and lengthy. Limitation is 3 years.

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