Supreme Court Dismisses Appeal in Cooperative Society Plot Allotment Dispute — Upholds Concurrent Findings on Estoppel and Lack of Preferential Right. Appellant accepted 250 sq. yards plot and deposited earnest money; later claimed 500 sq. yards without additional deposit — Held estopped by conduct under Punjab Cooperative Societies Act, 1961.

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Case Note & Summary

The appellant, Nisha Singla, was a founder member of Adarsh Colony Cooperative House Building Society Ltd., Ludhiana, established to provide residential plots. She deposited amounts between 1975 and 1982 for a plot. The Society acquired land through a government scheme, and 281 plots became available in 1983. An Administrator, Shri C.L. Azad, allotted plots arbitrarily, leading to cancellation by the Deputy Registrar on 17.07.1984. After appeals, the cancellation was upheld. In 1992, the Society's General Body resolved to allot plots at fixed prices. The appellant accepted a 250 sq. yards plot by affidavit on 30.07.1993, reserving a right for 500 sq. yards, and deposited Rs. 25,000. She later filed a dispute under Sections 55 and 56 of the Punjab Cooperative Societies Act, 1961, claiming a 500 sq. yards plot. The Additional Registrar dismissed the claim, holding that the appellant had accepted the 250 sq. yards plot and was estopped. Appeals under Section 68 and revision under Section 69 were also dismissed. The appellant then filed a writ petition, which was dismissed on 09.12.2002. A civil appeal before the Supreme Court was dismissed on 25.01.2011 with liberty to seek review. The review petition was dismissed on 16.05.2011. The Supreme Court, in the present appeal, upheld the concurrent findings, noting that the appellant had accepted the 250 sq. yards plot, deposited earnest money, and never surrendered it. The Court held that the appellant was estopped from claiming a larger plot and that preferential right is alien to cooperative law. The appeals were dismissed.

Headnote

A) Cooperative Societies - Plot Allotment - Estoppel - Punjab Cooperative Societies Act, 1961, Sections 55, 56, 68, 69 - Appellant accepted allotment of 250 sq. yards plot and deposited earnest money; later claimed 500 sq. yards without depositing additional amount - Held that by conduct of accepting the smaller plot, appellant is estopped from claiming a larger plot (Paras 10-12).

B) Cooperative Societies - Preferential Right - Punjab Cooperative Societies Act, 1961 - Appellant claimed preferential right for larger plot - Held that such preferential right is alien to the concept of cooperative societies (Para 10).

C) Civil Procedure - Review - Scope - Supreme Court dismissed earlier appeal with liberty to seek review; High Court dismissed review - Held that concurrent findings of fact based on evidence cannot be re-opened in review (Paras 13, 16).

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Issue of Consideration

Whether the appellant is entitled to allotment of a 500 sq. yards plot instead of the 250 sq. yards plot already accepted, and whether the concurrent findings of fact warrant interference.

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Final Decision

The Supreme Court dismissed the appeals, upholding the concurrent findings of the authorities and the High Court. The Court held that the appellant, by accepting the 250 sq. yards plot and depositing earnest money, was estopped from claiming a larger plot. The Court also noted that preferential right is alien to cooperative law. No interference was warranted.

Law Points

  • Estoppel by conduct
  • Preferential right alien to cooperative law
  • Finality of concurrent findings
  • Scope of review
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Case Details

2019 LawText (SC) (4) 105

Civil Appeal Nos. 3963-3965 of 2019 (Arising out of SLP (C) Nos. 29157-29159 of 2011)

2019-01-01

Hemant Gupta

Nisha Singla

Adarsh Colony Cooperative House Building Society Ltd. & Ors.

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Nature of Litigation

Civil appeal against dismissal of writ petition and review petition regarding allotment of a residential plot by a cooperative society.

Remedy Sought

Appellant sought allotment of a 500 sq. yards plot instead of the 250 sq. yards plot already accepted.

Filing Reason

Appellant claimed entitlement to a larger plot based on her membership and deposits, but the society allotted only 250 sq. yards.

Previous Decisions

Deputy Registrar cancelled initial allotments; appeals upheld cancellation; General Body meeting resolved allotment; appellant accepted 250 sq. yards plot; disputes under Sections 55/56, 68, 69 dismissed; writ petition dismissed; civil appeal dismissed with liberty to seek review; review dismissed.

Issues

Whether the appellant is entitled to allotment of a 500 sq. yards plot. Whether the appellant is estopped by her conduct in accepting the 250 sq. yards plot. Whether the concurrent findings of fact warrant interference.

Submissions/Arguments

Appellant argued that she was a founder member and had deposited amounts for a larger plot, and that the allotment of 250 sq. yards was arbitrary. Respondent argued that the appellant accepted the 250 sq. yards plot, deposited earnest money, and never surrendered it; thus, she is estopped from claiming a larger plot.

Ratio Decidendi

A member of a cooperative society who accepts allotment of a plot and deposits earnest money is estopped from later claiming a larger plot. Preferential right for a larger plot is not recognized under cooperative law.

Judgment Excerpts

The petitioner by her conduct of accepting the allotment of plot of 250 sq. yards, has in fact admitted the legality of allotment of plots hence is barred to agitate this fact now. The petitioner had already been allotted a plot of 250 sq. yards, which she preferred to retain. She did not deposit earnest money for a bigger plot and thus, there was no dispute regarding her claim. I also do not find any legal infirmities in the impugned orders, therefore, the revision petition is dismissed.

Procedural History

The appellant filed a dispute under Sections 55/56 of the Punjab Cooperative Societies Act, 1961, which was dismissed by the Additional Registrar. Appeals under Section 68 and revision under Section 69 were also dismissed. A writ petition was dismissed by the High Court on 09.12.2002. A civil appeal before the Supreme Court was dismissed on 25.01.2011 with liberty to seek review. The review petition was dismissed on 16.05.2011. The present appeals challenge the dismissal of the review and the writ petition.

Acts & Sections

  • Punjab Cooperative Societies Act, 1961: 26(1-D), 55, 56, 68, 69
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