Supreme Court Allows Appeal in Cooperative Society Dispute — Writ Petition to be Heard Anew. The High Court's failure to consider statutory remedies under the Delhi Cooperative Societies Act, 1972, necessitated a fresh hearing.

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Case Note & Summary

The appeal arose from a judgment of the Delhi High Court concerning the allotment of a plot to Jasjit Kaur, the daughter of Anoop Singh, who had initially sought a refund from the appellant cooperative society. Anoop Singh had requested a transfer of his membership to his daughter, but the society raised issues regarding the submission of an affidavit and ultimately refused the transfer. Jasjit Kaur filed a writ petition seeking either the allotment of a plot or a refund of the money paid. The High Court ruled in her favor, directing the society to allot a plot, which led to the present appeal. The appellant contended that the High Court overlooked various provisions of the Delhi Cooperative Societies Act, particularly Rule 25, which outlines disqualifications for membership. The appellant argued that the writ petition was premature as statutory remedies had not been exhausted. The respondent countered that the society could not retract its acceptance of the transfer and that the plot had been allotted following the High Court's order. The Supreme Court found that the High Court had not adequately considered the implications of deemed disqualification under Rule 25(2) and that the appellant had not filed a counter affidavit in the High Court. Consequently, the Supreme Court allowed the appeal, directing the High Court to rehear the writ petition while considering the relevant legal provisions and ensuring no third-party rights were created regarding the plot until the matter was resolved. The appeal was allowed without costs.

Headnote

A) Cooperative Societies - Membership Disqualification - Deemed Disqualification - Delhi Cooperative Societies Act, 1972, Rule 25 - The court examined the implications of deemed disqualification under Rule 25(2) and noted that the High Court did not consider this aspect, which is crucial for determining membership eligibility. The court held that the writ petition should be heard afresh by the High Court, considering the applicable legal provisions (Paras 8-15).

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Issue of Consideration

Whether the High Court erred in allowing the writ petition without considering the statutory remedies available under the Delhi Cooperative Societies Act, 1972.

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Final Decision

The Supreme Court allowed the appeal, directing the High Court to rehear the writ petition while considering the relevant legal provisions and permitting the appellant to file a counter affidavit. No third-party rights regarding the plot were to be created until the matter was resolved.

Law Points

  • Cooperative Society Membership
  • Writ Jurisdiction
  • Statutory Remedies
  • Deemed Disqualification
  • Legal Fiction
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Case Details

2009 LawText (SC) (02) 217

Civil Appeal No. 957 of 2009

2009-02-12

Dr. Arijit Pasayat, Asok Kumar Ganguly

K.T.S. Tulsi

Hindustan Cooperative Housing Building Society Ltd.

Registrar, Cooperative Societies and Jasjit Kaur

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Nature of Litigation

Dispute regarding the allotment of a plot and membership transfer in a cooperative society.

Remedy Sought

Jasjit Kaur sought a writ of Mandamus for plot allotment or refund.

Filing Reason

The appellant society's refusal to transfer membership and allot a plot.

Previous Decisions

The High Court allowed the writ petition and directed the society to allot a plot.

Issues

Whether the High Court erred in allowing the writ petition without considering the statutory remedies available. The implications of deemed disqualification under Rule 25 of the Delhi Cooperative Societies Rules.

Submissions/Arguments

The appellant argued that the High Court overlooked statutory provisions and that the writ petition was premature. The respondent contended that the society could not retract its acceptance of the transfer and that the plot had been allotted.

Ratio Decidendi

The court emphasized the importance of adhering to statutory remedies and the implications of deemed disqualification in cooperative society membership.

Judgment Excerpts

The court is entitled and bound to ascertain for what purposes and between what persons the statutory fiction is to be resorted to. The effect of it has not been examined by the High Court. We are therefore of the considered opinion that the writ petition needs to be heard by the High Court afresh.

Procedural History

The appellant filed a review petition after the High Court's order allowing the writ petition. The review petition was dismissed, leading to the present appeal.

Acts & Sections

  • Delhi Cooperative Societies Act, 1972:
  • Delhi Cooperative Societies Rules, 1973: Rule 25
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