Club Member Paying Fees Is a ‘Consumer’ Under Consumer Protection Act [Read Order]

Ahmedabad: The Gujarat State Consumer Disputes Redressal Commission has held that a member of the Surat District Cricket Association who pays membership and maintenance fees to avail its facilities is a “consumer” under the Consumer Protection Act, and that the facilities provided against such fees amount to “service”. 

It set aside the District Commission’s order dismissing his complaint on the ground of maintainability and remanded the matter for a decision on merits.

A Bench of I.D. Patel, President (In-charge), and Dr. J.G. Mecwan, Member, was hearing Appeal under Section 15 of the Consumer Protection Act, 1986, filed by Manubhai C. Shah against the District Forum, Surat’s order which had dismissed his complaint at the preliminary stage on the question of jurisdiction.

The complainant, a Goa resident, said he is a lifetime member under the Family Patron category of the Surat District Cricket Association and had paid fees regularly, including cheques of Rs 4,000 (2010) and Rs 12,000 (2013). He alleged that the Association showed Rs 20,000 as outstanding in a letter around 01.04.2015, which also said membership could be cancelled only if fees remained unpaid for two years, yet terminated his membership on 25.04.2015 on the ground that fees were unpaid for three years. He said the Association did not encash his later cheque of Rs 25,000 and did not reply to his legal notice of 30.07.2016, and he sought restoration of membership and Rs 25,000 as compensation.

The appellant argued that no valid termination resolution was produced and that payments made were not given credit. The Association argued that a valid resolution existed, that the Rs 12,000 paid in 2013 related to earlier years, and that the Rs 25,000 cheque itself showed dues were pending. It said the District Commission had not examined the merits and, if necessary, the matter could be remanded.

The Commission took on record, subject to proof and admissibility, the Association’s resolution and bye-laws filed under Sections 41 and 27 of the Act. It then observed:

“The membership is not merely a matter of holding an identity card, but is connected with availing facilities/services against payment of membership and maintenance fees.”

Noting that the Association provides cultural, sports, indoor games and other recreational facilities to members, the Commission held that the appellant is a consumer and the facilities are a service. It found that the District Commission had mechanically relied on the State Commission’s decision in Appeal No. 57/2016, where the complainant relied only on an identity or membership card, whereas here detailed particulars of payments, a bank statement, the Rs 25,000 cheque and the legal notice were produced. It distinguished the Supreme Court proceedings in SLP (C) No. 18636/2019, referred to a larger Bench on the Act’s application to a Trust, as this case concerns an individual member paying fees for facilities.

The appeal was partly allowed, the District Forum’s order was quashed, and Complaint No. 802 of 2016 was remanded to the Surat District Commission to be decided afresh on merits after hearing both sides and allowing evidence, with the parties to appear on 06.11.2026.

The Commission clarified that, except for the finding that the appellant is a consumer, it expressed no opinion on the payments, outstanding dues, termination of membership or validity of the resolution. 

Appearances:

For the Appellant: Mr. P.H. Thakkar, Advocate.

For the Respondents: Mr. Milan Dudhiya, Advocate.

Case Title: Manubhai C. Shah vs. Surat District Cricket Association & Ors., Appeal No. 353 of 2018

[Read Order]