Santosh Kumari Chadha vs Railway Employees Cghs Ltd. & Anr
2016 Latest Caselaw 7434 Del

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*     IN THE HIGH COURT OF DELHI AT NEW DELHI
+                         W.P.(C) 7541/2013
                                   Date of decision: 16th December, 2016.
      SANTOSH KUMARI CHADHA                ..... Petitioner
                  Through Mr. Atul Kumar Singh, Advocate.

                          versus

      RAILWAY EMPLOYEES CGHS LTD. & ANR ..... Respondent
                  Through     Ms. Jyoti Taneja, Advocate for
                  respondent No.2, GNCTD/RCS.

      CORAM:
      HON'BLE MR. JUSTICE SANJIV KHANNA
      HON'BLE MR. JUSTICE CHANDER SHEKHAR

SANJIV KHANNA, J. (ORAL)

Santosh Kumari Chadha, the writ petitioner, was enrolled as a

member of the Railway Employees Cooperative Group Housing Society

Ltd. (Cooperative Society, for short) on 14th June, 1977.

2. In 1991, Santosh Kumari Chadha claims that she learnt that her name

had been deleted from the list of members, perceptibly for the reason that

she had resigned.

3. Santosh Kumari Chadha challenged the Cooperative Society and

invoked her right by initiating arbitration proceedings under Section 60 of

the Delhi Cooperative Societies Act, 1972. An arbitrator was appointed and by an interim order in the arbitration proceedings dated 15th March, 1996,

the Cooperative Society was directed to reserve a category „B‟ flat. By the

arbitration Award dated 22nd May, 2001, Santosh Kumari Chadha‟s

assertion and right was accepted observing that she was validly enrolled

member having deposited Rs.1900/- and Rs.1000/- on 5th July, 1975 towards

share money and land money, respectively. She was issued share certificate

Nos. 257 to 261 on 14th June, 1977. The contention that Santosh Kumari

Chadha had resigned in 1988-89 could not be substantiated in the arbitration

proceedings as no such letter could be produced. On the other hand, Santosh

Kumari Chadha had filed a copy of her application seeking a house building

loan from her employer‟s office. The operative portion of the Award dated

22nd May, 2001 reads as under:-

"After going through the documentary evidence placed on record and after hearing the arguments from the Ld. Counsel of the claimant, I am of the considered view that the claimant is a validly enrolled bonafide member of the society and since she has never resigned from the society, she continues to be enjoying the same status. I, Krishan Kumar, Joint Registrar, therefore, order the respondent society to allot one flat of Category „B‟ to the claimant. The society will work out the necessary demands to be paid by the claimant. Accordingly, claimant will make payment during a period of one month from the date of issue of this demand along with interest amount @ 12%."

4. The Award has attained finality and has not been challenged either by

Santosh Kumari Chadha or the Cooperative Society.

5. In spite of the affirmative Award, Santosh Kumari Chadha during her

life time did not get the opportunity to occupy and reside in a flat. She

expired on 6th April, 2015 and her legal representatives have continued the

fight to acquire a flat. Santosh Kumari Chaddha was first compelled to file

an execution petition, which was contested by the respondent Cooperative

Society. The execution proceedings remained pending, without any fruitful

and positive outcome.

6. Santosh Kumari Chadha had then learnt that the only vacant flat

available in the Cooperative Society, being Flat No.39, had been allotted to

the daughter-in-law of the Secretary of the Society. In these circumstances,

she had filed W.P. (C) No. 5351/2010, which was allowed vide order dated

20th January, 2012. This order affirms that Flat No.39 had been allotted by

the Secretary to his daughter-in-law in terms of the agreement executed

between them on 28th September, 2006. Further, the Secretary had sold the

flat allotted to him in his own right on 18th May, 2006 i.e. earlier and prior to

the agreement in September, 2006. The Registrar had also urged that

allotment to the daughter-in-law of the Secretary of the Cooperative Society was in violation of the Delhi Cooperative Societies, Act, 2003 and Delhi

Cooperative Societies Rules, 2007. Flat No.39 was unoccupied and was

locked and the keys were deposited in the Court. It was directed that the

keys would be released to the petitioner i.e. Santosh Kumari Chadha upon

her filing an undertaking that she would not sell, transfer, assign or part with

possession of the flat. The Cooperative Society was mandated to calculate

the amount due to be paid by the petitioner in terms of the Award dated 22nd

May, 2001 and on payment, Santosh Kumari Chadha‟s case would be

forwarded to the Registrar, Cooperative Societies.

7. Santosh Kumari Chadha thereafter filed the compliance affidavit as

required in the Court on 27th January, 2012.

8. By application dated 13th June, 2012, Santosh Kumari Chadha wrote

to the Administrator and President of the Cooperative Society as well as to

the Registrar and Assistant Registrar, Cooperative Societies requesting that

necessary action be taken and the amount payable should be communicated.

The Cooperative Society responded stating that Special Leave to Appeal had

been preferred before the Supreme Court and since the matter was sub-

judice, it would not be proper to take any step. The Special Leave to Appeal

(Civil) No.10213/2012 was dismissed as withdrawn vide order dated 5 th July, 2012.

9. By the letter dated 6th October, 2012, the Cooperative Society

informed Santosh Kumari Chadha that Rs.43,13,340/- was due and payable

by her in terms of the Award dated 22nd May, 2001. The calculations made

by the cooperative society read as under:-

"

Period Amount 29-09-1996 as per general body Rs.8,00,000.00 decision January 1997 (3 months) Rs.8,24,000.00 January 1998 Rs.8,32,640.00 January 1999 Rs.9,32,556.00 January 2000 Rs.10,44,462.00 January 2001 Rs.11,69,797.00 January 2002 Rs.13,10,172.00 January 2003 Rs.14,67,392.00 January 2004 Rs.16,43,479.00 January 2005 Rs.18,40,696.00 January 2006 Rs.20,61,579.00 January 2007 Rs.23,08,968.00 January 2008 Rs.25,86, 044.00 January 2009 Rs.28,96,369.00 January 2010 Rs.32,43,933.00 January 2011 Rs.36,33,205.00 January 2012 Rs.40,69,189.00 upto June 2012 Rs.43,13,340.00 "

10. The petitioner is aggrieved by the aforesaid computation and demand

which it is submitted is exorbitant and stems from bias and seeks to inflict

economic penalty. As per the petitioner, the cost of flat as indicated and

affirmed in the Special General Body meeting held on 28th July, 1996 was Rs. 2,50,000/-. Copy of the minutes of the Special General Body meeting

held on 28th July, 1996 has been placed on record as Annexure-E. This fact

has also been affirmed by the Registrar, Cooperative Societies in their

affidavit filed in terms of our order dated 20th October, 2016.

11. In these circumstances, we fail to fathom the basis on which the

Cooperative Society had taken the amount/cost of the flat as Rs. 8,00,000/-

as on 29th September, 1996, supposedly as per the General Body decision.

The cost of the flat around the same time was Rs.2,50,000/-. Santosh

Kumari Chadha in order to show her bona fides had computed the amount

payable and had sent a demand draft of Rs.12,48,000/- with the letter dated

31st August, 2013, which were received by the Cooperative Society on 2nd

September, 2013. This demand draft was returned by the Cooperative

Society along with the letter dated 18th September, 2013, stating that as per

the Award, Santosh Kumari Chadha was liable to pay interest @ 12%, but

the Award did not specify whether the interest would be cumulative or

simple.

12. This had prompted Santosh Kumari Chadha to file the present writ

petition. As noticed above, Santosh Kumari Chadha expired during the

pendency of the writ petition on 6th April, 2015 and is now being represented by her legal heirs i.e. one son and four daughters, who have

been brought on record. The respondent Cooperative Society has been

served, but they have not bothered to file reply or be present. Their right to

file reply was closed vide order dated 13th March, 2015. By our last order

dated 9th December, 2016, we had directed that a copy of the said order

would be sent to the Cooperative Society. However, none has appeared on

behalf of the Cooperative Society even today.

13. Keeping in view the aforesaid facts and noticing the harassment and

agonising wait by late Santosh Kumari Chadha and now by her legal

representatives and sheer cussedness and malevolence of the Cooperative

Society, it is directed that the petitioners would pay simple interest @ 12%

per annum on Rs.2,50,000/- with effect from 28th July, 1996 i.e. the date on

which the special general body meeting was held and the cost of the Flat

No.39 (category „B‟) located on the third floor was fixed.

14. The Award had stipulated interest @ 12%. When the Award is silent

and did not stipulate and specify compound interest, it should be read as

awarding simple interest. Simple interest would be from 28th July, 2001

onwards till 3rd September, 2013, when Santosh Kumari Chadha had sent the

demand draft of Rs.12,48,000/-. The petitioner on or after 3rd September, 2013 would be liable to pay interest on the balance amount, if any, due and

payable.

15. The amount as quantified by the petitioner will be deposited with the

Registrar, Cooperative Societies within a period of two months from the

date when a copy of this order is made available to the petitioner. This time

is being granted as the draft would have to be revalidated. The bank

concerned, we hope and trust would extend full assistance and cooperation.

The Registrar Cooperative Society will examine the said computation and,

in case of any difference, inform and balance payment would be made.

Legal representatives of Santosh Kumari Chadha will appear before the

Registrar, Cooperative Societies on 27th February, 2017 at 2.30 p.m. along

with necessary documents. Copy of this order will be sent to the

Cooperative Society, who will ensure that their representative is present

before the Registrar, Cooperative Societies on the said date. The legal

representatives will complete the requisite formalities as required in the

office of the Registrar, Cooperative Societies. Possession of the flat will be

handed over to the legal representatives of Santosh Kumari Chadha within a

period of 30 days after the payment is made and requisite formalities are

completed.

16. The writ petition is disposed of. No costs.

Dasti.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J.

DECEMBER 16, 2016 NA