If you are stuck in such a situation, here is what to do.

Mr. Alok Verma, a freelance consultant from the city of Navgarh, recently signed a month-to-month membership agreement with a well-known coworking company, “ProWork Hubs,” for a space in their Jayanagar facility. The official invoice he received clearly listed ‘credit card’ as a valid payment option. However, the very next day, when he attempted to pay, he discovered the option was unavailable on their portal. Upon inquiry, the staff informed him that payments could only be made via bank transfer or UPI, a detail that was never disclosed before he signed the legally binding contract.

Feeling that the terms were misrepresented, Mr. Verma immediately sent an email within 24 hours of signing, requesting the cancellation of his agreement. ProWork Hubs refused his request, citing an unspecified “internal policy” and a supposed regulatory directive that was not mentioned anywhere in the agreement he had signed. Mr. Verma is now concerned about the company’s refusal and the potential legal and financial implications of this dispute.

Advice in such cases

If you find yourself in a similar situation, it is crucial to act methodically to protect your interests.

• Review the Agreement: Carefully read your signed agreement, paying close attention to clauses related to payment terms, cancellation policies, breach of contract, and dispute resolution.
• Document Everything: Maintain a clear record of all communications. This includes the signed agreement, the invoice mentioning the original payment methods, your emails requesting cancellation, and the company’s responses.
• Send a Formal Notice: Draft a formal written communication (preferably an email for a time-stamped record, followed by a registered post letter) clearly stating the discrepancy, citing it as a material misrepresentation, and reiterating your request to cancel the contract without any penalty.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

This case primarily falls under the purview of the Indian Contract Act, 1872, and the Consumer Protection Act, 2019.

• Section 18 of the Indian Contract Act, 1872: This section defines ‘misrepresentation’. The company’s failure to provide the promised payment method can be argued as a misrepresentation, as it induced you to enter the contract.
• Section 19 of the Indian Contract Act, 1872: This section states that when consent to an agreement is caused by misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused. This gives you the right to cancel the contract.
• Consumer Protection Act, 2019: The act of promising a service or term (like a payment method) and then failing to provide it can be classified as an ‘unfair trade practice’. You can seek remedy under this act.

If you are the complainant

As the person who has been wronged, you are the complainant. Here are the steps you can take:

• Gather all your evidence, including the agreement, invoice, and all email correspondence.
• Send a formal legal notice to the company through an advocate. This notice should detail the misrepresentation, declare the contract voidable at your instance, and demand immediate cancellation without any financial liability on your part.
• If the company does not comply with the legal notice, you can file a complaint before the appropriate Consumer Dispute Redressal Commission, seeking cancellation of the agreement and compensation for harassment.
• Alternatively, a suit can be filed in a civil court for a declaration that the contract is void and for its cancellation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

Being in such a position can be stressful. It’s important to remember your rights.

• The terms written in the signed agreement hold legal weight. Verbal claims or “internal policies” not mentioned in the contract are generally not enforceable against you.
• Do not be intimidated by the company’s refusal or their citation of vague directives. Stand firm on your position, which is based on the written terms of the contract.
• Follow the legal path advised by your advocate, as it provides a structured way to resolve the dispute.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

This is a civil dispute arising from a breach of contract and misrepresentation. The police have a very limited role, if any.

• The police will not register an FIR for such a matter as it does not constitute a criminal offense on the face of it. It is a contractual dispute.
• If you approach them, they will likely advise you to seek a remedy in a civil court or the consumer forum.
• Police intervention would only be warranted if there were elements of criminal fraud or cheating, which are more difficult to establish in such business-to-consumer contractual disagreements.

FAQs people normally have

Here are some common questions that arise in such situations:

• Can the company force me to pay for the membership? They can send you demand notices or even file a civil suit for recovery of money. However, you have a very strong defense based on their misrepresentation, which makes the contract voidable at your choice.
• What is the worst-case scenario? The worst-case scenario is that the company files a lawsuit against you. You would then have to defend the case in court. Given the facts, where a promised facility was not provided, your chances of success are high. The main downside is the time and cost involved in litigation.
• Will this dispute affect my credit score? No, a private dispute with a service provider like a coworking space does not get reported to credit bureaus and will not impact your credit score.

What evidence is required?

Strong evidence is key to proving your case. You will need:

• The signed membership agreement.
• The official invoice issued by the company that lists ‘credit card’ as a payment option.
• The email or any written communication you sent within 24 hours requesting cancellation.
• All subsequent email correspondence with the company where they refused your request.
• Any other proof of communication, such as chat transcripts or call records, if available.

How long will the investigation take?

Since this is a civil matter, there is no “investigation” in the police sense. The timeline depends on the legal route taken:

• Resolution through a legal notice can take anywhere from 15 to 30 days.
• A case filed in a Consumer Dispute Redressal Commission can take from a few months to a couple of years for a final decision.
• A civil suit in a regular court is a much longer process and can take several years to be fully resolved.

Advocate Sudhir Rao, Supreme Court of India