Shantanu Apartment Co-Operative ... vs Registrar Co-Operative ...
2015 Latest Caselaw 7652 Del

*   IN THE HIGH COURT OF DELHI AT NEW DELHI
+         W.P.(C) 3665/2014 & CM No. 7439/2014
%                                     Date of decision : 6th October, 2015
    SHANTANU APARTMENT CO-OPERATIVE GROUP HOUSING
    SOCIETY LIMITED                        ..... Petitioner
                  Through: Mr. Rakesh Kumar Garg, Adv.

                         versus

    REGISTRAR CO-OPERATIVE SOCIETIES      ..... Respondent
                 Through: Mr. Naushad Ahmed Khan, ASC for
                          R-1

    CORAM:
    HON'BLE MS. JUSTICE GITA MITTAL
    HON'BLE MR. JUSTICE I.S.MEHTA
                                  JUDGMENT (ORAL)

GITA MITTAL, J.

1. The petitioner assails an order dated 28th April, 2014 (page 127) passed by the office of the Registrar of Cooperative Societies rejecting three proposals for expulsion of six members from membership of the society. The Registrar of Cooperative Societies in fact by this order has refused to consider the proposals on the ground that the entire proceedings have been conducted by the Managing Committee which has not been validly constituted as per the provisions of DCS Act which also constitutes violation of provision of section 35(1) of the Act.

2. We have heard learned counsel for the parties who have taken us through the record.

3. We find that it is an admitted position that there is a validly

constituted managing committee duly elected in the year 2011 whose tenure was to expire in 2014 in accordance with law. Nothing to the contrary is pointed out to us.

4. We are also reminded of W.P.(C) No.3545/2014 filed by the petitioner seeking appointment of a Returning Officer to conduct elections to the managing committee. This writ petition was listed before us only yesterday wherein we have taken note of the recent order appointing a Returning Officer to conduct elections to the Managing Committee of the society. It, therefore, cannot be contended or held that the managing committee is seeking to perpetuate its authority without abiding by the law.

5. Mr. Rakesh Kumar Garg, learned counsel for the petitioner has drawn our attention to the three proposals regarding expulsion of the six members which were submitted to the respondent no.1. The same appear to be dated 19th August, 2013 regarding Mr. Pankaj Aggarwal and Mr. Jai Kishan Khanna (at page 105); 9th November, 2013 regarding Mr. Jaipal Singh Shishodia and Mrs. Inderwati Rana (page

107); and 12th November, 2013 regarding Mr. Sunil Gadodia and Mr. Amarjit Singh Bhatia. These expulsions had been necessitated on account of different reasons which have been detailed in the proposals.

6. It appears that on an initial examination of the proposals, the Registrar of Cooperative Societies had issued a communication dated 28th January, 2014 (page 111) regarding Sh. Pankaj Aggarwal, Sh. Jai Kishan Khanna, Sh. Sunil Gadodia and Sh. Amarjit Singh Bhatia seeking supporting documents regarding compliance of Section 86 of

the DCS Act, 2003 and Rule 99 of the DCS Rules. The RCS had sought copy of the resolutions approving the expulsion, documents in support of the ground of expulsion as well as copy of notices for payment of society dues and other relevant documents.

7. Similarly, with regard to Jaipal Singh Shisodia and Inderwati Rana, the office of the RCS had issued a letter dated 30th January, 2014 (page 112) seeking the supporting documents as aforesaid.

8. These documents were submitted to the RCS alongwith six separate communications each dated 3rd March, 2014.

9. Unfortunately, instead of proceeding in accordance with Section 86(3), the Registrar of Cooperative Societies has adopted a shortcut and simply refused to examine the proposal on the aforenoted ground. Given the chronology of events noted by us hereinabove, it was not open for the RCS to take a view that the managing committee which has taken action in the matter between the year 2011 to 2014, was not validly constituted in accordance with the provision of the DCS Act. The order dated 28th April, 2014 therefore tantamounts to the RCS refusing to exercise jurisdiction lawfully vested in it. In the given facts and circumstances of the case, the petitioner is entitled to invoke writ jurisdiction of this court.

In view of the above, we direct as follows :-

(i) The order dated 28th April, 2014 is hereby set aside and quashed.

(ii) A direction is issued to the Registrar of Cooperative Societies to consider the proposals of the society contained in the communications dated 19th August, 2013; 9th November, 2013 and

12th November, 2013 regarding expulsion of the six members detailed therein.

(iii) The Registrar, Co-operative Societies shall proceed in the matter in accordance with Section 86 of the Delhi Cooperative Societies Act, 2003 and take into consideration the records placed before him by way of six responses dated 3rd of March 2014 of the petitioners.

(iv) The period of 180 days as envisaged under Section 86(3) of the DCS Act shall be reckoned from the date when the copy of this order is served on the Registrar of Cooperative Societies.

This writ petition is allowed in the above terms.

GITA MITTAL, J

I.S.MEHTA, J OCTOBER 06, 2015 kr