S.N. Jain vs Registrar Co-Op. Societies
2013 Latest Caselaw 3754 Del

*      IN THE HIGH COURT OF DELHI AT NEW DELHI

+              W.P.(C) 5234/2013 and CM No. 11745/2013 (Stay)

S.N. JAIN                                     ..... Petitioner
                           Through:     Mr. K.K. Malhotra, Advocate.
             versus
REGISTRAR CO-OP. SOCIETIES                      ..... Respondent
                    Through:            None.
CORAM:
HON'BLE MS. JUSTICE REVA KHETRAPAL
HON'BLE MS. JUSTICE PRATIBHA RANI
                           ORDER (ORAL)

: REVA KHETRAPAL, J.

1. The prayer in the present writ petition is for setting aside of the

order dated 17.6.2013 passed by the Registrar Cooperative Societies,

Delhi (the Respondent herein), whereby in exercise of the powers

conferred under Section 35(5) of the Delhi Cooperative Societies Act,

2003 (DCS Act), Shri S. Roy Biswas, Deputy Director, DDA was

appointed as Returning Officer for holding the election of the

Managing Committee of the Jai Laxmi Cooperative Group Housing

Society Ltd. (hereinafter referred to as "the Society"), as per DCS Act

and Rules.

2. At the outset, we may note that the writ petition has been filed

by the Petitioner in his capacity as Treasurer of the Society. The

Petitioner also professes to have been the Secretary of the Society for

more than 15 years. According to the Petitioner, the Society had

appointed one Shri Pandit Vinod Kumar Dubey, Advocate as the

Returning Officer for holding the elections of the Managing

Committee of the Society vide Resolution No.3 dated 7.12.2011 of

the Managing Committee. The Returning Officer so appointed by the

Managing Committee had issued an agenda notice dated 5.1.2012 for

the holding of elections but the process of holding elections came to a

stop on some of the residents of the Society making a representation

to the Respondent, Registrar of Cooperative Societies. By an order

dated 30th March, 2012, the Respondent appointed an Inspecting

Officer to inspect the Society in view of the said complaints and to

explore the possibility of holding elections of the Managing

Committee of the Society and to submit report within 45 days from

the issue of the order. By subsequent orders dated 25th June, 2012,

the Respondent invoking the powers conferred upon him under

Section 35(5) of the DCS Act, 2003 appointed an Administrator of

the Society to take steps to revive the democratic set up within 90

days of his appointment after assuming charge. The said order of the

Registrar Cooperative Societies dated 25.6.2012 was challenged by

the Society before the learned Financial Commissioner, Delhi in

revision proceedings. By his order dated 14 th May, 2013, the learned

Financial Commissioner disposed of the said revision petition

directing that the elections be conducted in the Society without any

further delay by a Returning Officer to be appointed by the Registrar

Cooperative Societies. In this factual scenario, the Registrar passed

the impugned order dated 17.6.2013 appointing Shri S. Roy Biswas,

Deputy Director, DDA as Returning Officer for holding the elections

of the Managing Committee of the Society.

3. We have heard learned counsel for the Petitioner and in our

opinion the writ petition deserves to be dismissed at the threshold.

We say so on the basis of the facts delineated in the order of the

Financial Commissioner, which have not been disputed by the

Petitioner in the present writ petition. Admittedly, the last election of

the Managing Committee of the Society was held in the year 2002

and the Managing Committee elected in that year has been continuing

to hold office till date for no justifiable reason. Indubitably,

therefore, the conduct of the elections of the Society is imperative,

more so as there are several disgruntled members of the Society who

had in the first instance approached the Registrar to look into the

affairs of the Society and subsequently filed applications for

impleadment under Order I Rule 10 CPC before the Financial

Commissioner. The counsel for the said impleaded applicants as

evidenced by the order of the Financial Commissioner made a strong

plea before the Financial Commissioner that the members of Society

are likely to suffer irreparable loss and injury if the existence of the

present Managing Committee is allowed to be perpetuated

indefinitely and if the democratic functioning of the Society is not

restored by the conduct of elections. The relevant extract from the

order of the Financial Commissioner dated 14.05.2013 is reproduced

hereunder:-

"5. .................................In the special situation prevailing in this cooperative society and in view of above facts and observations and because all the parties are now willing to conduct the elections at the earliest it is directed that the elections may be got conducted in this society without any further delay.

6. Be that as it may, now it would be only proper and appropriate that in a time bound manner elections are held in this cooperative society under the due supervision of RCS. This could be achieved only when the RCS is given freedom to appoint a competent Returning Officer of repute who would be acceptable

to all and the election process is earnestly set in motion within 15 days from today so that elections are brought to completion observing due procedure laid down under the DCS Act and Rules within the shortest period prescribed.

7. Since the present managing committee has been working for several years and has also got all the records and documents required for conduct of elections, as has been confirmed in the court, in person, by the President, Sh. M.K. Verma, he is directed to extend all cooperation to the Returning Officer to be appointed by RCS. The Returning Officer so appointed by RCS shall conduct the elections systematically and without any fear or favour, maintaining transparency and observing all the steps and procedure laid down under the DCS Act and Rules for the purpose.

8. Further, as a precautionary measure it is cautioned that all the parties in the case shall extend full cooperation in the early conduct of election, and if any evidence of lack of cooperation or hindrance is noticed on the part of the existing managing committee or any other member of the Society, the RCS shall have freedom to appoint another senior officer afresh as Administrator for smooth conduct of elections. It is also ordered that the existing managing committee having already served its full term by several years is restrained from taking any major or policy decisions.

9. There being no other substantive issues left to be adjudicated upon, this petition is disposed of accordingly with the above directions."

4. In our opinion, the present writ petition has been filed by one

of the members of the Ex-Managing Committee with the malafide

object of perpetuating the existence of the Managing Committee and

constitutes an abuse of the process of the Court. The order of the

Financial Commissioner has not been challenged before us and the

present writ petition, therefore, appears to be an attempt to assail the

same collaterally. There also does not appear to us to be any

justifiable reason why elections of the Society should not be held by

the Registrar Cooperative Societies as directed by the Financial

Commissioner, the Society itself having failed to hold the same ever

since the year 2002. Interestingly, the Society is not even made a

party to the present writ petition, which goes to show that the writ

petition has in fact been filed by the Petitioner in his individual

capacity.

5. The writ petition is accordingly dismissed. CM No.

11745/2013 stands disposed of accordingly.

REVA KHETRAPAL JUDGE

PRATIBHA RANI JUDGE August 26, 2013 km