Lok Sewak Co-Operative House ... vs Union Of India And Anr.
1997 Latest Caselaw 1043 Del

JUDGMENT

Manmohan Sarin, J.

(1) The petitioner-society has filed this writ petition seeking a wri to certiorari for quashing the impugned ordersdated21.5.1993,bywhich the Assistant Registrar of Co-operative Societies, declined the Society's request for amendment/additions to the object clause for running School/Club etc. The petitioner-Society at its Special General Body Meeting on 21.9.1995, had opted for the following additions to the Bye-laws : "AFTER Clause (iii). Clause (iv) be added as under : (iv) To establish and maintain social cultural, recreative educational public health or medical institutions for the benefit of the members."

(2) The petitioner-Society, which had set up a residential colony in South Delhi called Geetanjali Enclave, wanted to make a provision inter alia for a School. The Society for the first time requested the respondent No. 2-Registrar of Co-operative Societies, to register the amendment to its Bye-laws dated 22.9.1995. Certain clarifications were sought and record were inspected and verified. It is the petitioner's case that the amendment is deemed to have been registered pursuant to Rule 15(5) of the Delhi Co-operative Societies Act, 1972, at the expiry of 6 months of the amendment and the application made for its registration, the permission is deemed to have been granted.

(3) The petitioner-Society proceeded on the basis that deeming provision stood granted to it and approached the Education Officer of respondent No. 1 to grant the Essentiality Certificate. The Education Officer, however, declined to issue the Essentiality Certificate, since the objects contained in Bye-laws of the Society did not provide for running of a School. This brought the petitioner back to the Registrar of Co-operative Societies and the petitioner wrote to the Registrar Co-operative Societies on 12.11.1991, requesting the Registrar to formally approve the amendment to its Bye-laws sought in September, 1975. The respondent vide its letter dated 6.12.1991, advised the petitioner that its proposed for running the School had been rejected, it was open for the residents to form an association for that purpose. Thereafter, followed series of the representations by the petitioner-Society.

(4) The petitioner-Society in its representation contended that the amendment sought in terms of Rule 15(5) and Section 11 of the Act, already stood granted on expiry of the statutory period of 6 months. The respondent No. 2 nevertheless maintained its objection that the primary object of the House Building Society was to develop and allot residential plots to Schools, Clubs etc. and the application was dismissed on 21 .5.1993. The petitioner's appeal to the Lt. Governor, which was heard by the Financial Commissioner, was also dismissed vide order dated 25.11.1994, holding the order dated 21.5.1993. The Financial Commissioner held that the amendment sought was not in keeping with the main aim and object of allotting plots for residence.

(5) Learned Counsel for the petitioner submitted that the Registrar of Cooperative Societies had been following a discriminatory and adhoc practice of allowing similar amendment to other societies, who were placed in a absolutely similar circumstances. He has annexed the Bye-laws of Panch Shila Co-operative House Building Society, wherein one of the object is, "establish and maintain schools and other educational institutions for providing educational facilities in the colony" has been allowed.

(6) The Financial Commissioner did not consider the examples of Societies cited in which similar amendments had been allowed on the ground that circumstances in which the amendments were allowed were not known. Further that ground of discrimination could not be urged in the Forum before him.

(7) Counsel for the petitioner has drawn my attention to a communication from the Ministry of Health and Family Planning and Works, Housing and Urban Development dated 26th and 27th June, 1970 to the Secretary, Land and Building Department (page 97 of the Paper Book). The said communication, inter alia incorporates a decision taken by the supreme lessor i.e. the. President in the following terms: "THE President has been pleased to decide that a part of the said land in colonies developed by House Building Co-operative Societies, under the scheme, other than residential plots leased out to Co-operative House Building Societies, may be allotted to such Societies as had incurred expenditure on premium and development, wherever asked for a specific institutional purpose viz. a 'Community Centre' or a Club or a 'School' free of cost, the area of the land to be so allotted shall be determined by the Lt. Governor. The land will vest in the President and it will be given to the Society on lease on usual terms, but on nominal ground rent of Rs. 1.00 per annum for which purpose a separate lease deed will be executed."

IT would be seen from the foregoing that a policy decision has been taken in terms of which a part of the land which is developed by the House Co-operative Societies other than the residential plots may be allotted to the said Society for specific purpose viz., a 'Community Centre' or 'a Club' or 'a School' free of cost. This is subject only to the condition that the Society had incurred expenditure on premium and development of the land. It further goes on to say that the area of the land to be so allotted shall be determined by the Lt. Governor and give to the Society on lease on usual terms but on nominal ground rent of Rs. 1.00 per annum for which purpose a separate lease deed would be executed.

(8) It would be seen from the foregoing that in terms of the policy decision taken on behalf of the Government of India, land can be allotted to the House Building Societies for the specific purpose of a 'School'. Once a decision is there, it cannot be said that the amendment sought by the Society in their object clause providing for establishing and running of School is ultra vires or contrary to the objects of the Society. In these circumstances, the amendment passed by the Society dated 21.9.1975 in its Bye-laws is within its competence and deserves to be allowed. It is also not necessary to go into the other contentions raised by the Counsel for the parties. Accordingly, the impugned orders dated 21.5.1993 and 25.11.1994 are hereby quashed and a direction is issued to the Registrar Co operative Societies to register the amendment as proposed by the petitioner-Society forthwith.

(9) WRIT petition is disposed of with the above directions but with no order as to costs.