Case Note & Summary
The Supreme Court heard an appeal against the dismissal of a writ petition challenging the allotment of two super deluxe flats by HEWO Society to respondent Nos. 3 and 4. The appellant, a member of HEWO, alleged favoritism and ineligibility in the allotments. The High Court had dismissed the petition, citing estoppel due to the appellant's participation in the draw of lots. The Supreme Court examined the society's bye-laws and found that preferential allotment to a governing body member (respondent No. 3) was not permissible as it violated eligibility criteria. The allotment to respondent No. 4 through a draw of lots was also scrutinized. The Court held that the allotments were arbitrary and lacked transparency, violating principles of fairness. It affirmed the maintainability of the writ petition under Article 226, noting the society's connection to government-allotted land and government employee members. The appeal was allowed, quashing the allotments and remanding the matter for fresh consideration.
Headnote
The Supreme Court allowed the appeal, quashing the allotment of two super deluxe flats by HEWO Society to respondent Nos. 3 and 4 -- The Court held that the allotment was arbitrary and violated the society's bye-laws, as preferential allotment to a governing body member was impermissible without eligibility -- The Court affirmed that a writ petition under Article 226 of the Constitution is maintainable against HEWO Society due to lack of transparency and fairness, especially since the land was allotted by the government and members are government employees -- The Court rejected the defense of estoppel, noting that the appellant's participation in the draw of lots did not preclude challenge to arbitrary actions -- The Court emphasized the fiduciary duty of ex officio members in the Governing Body to act for the common good, eschewing favoritism and bias
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Issue of Consideration: The Issue of whether the allotment of super deluxe flats by HEWO Society to its governing body member and another member was arbitrary and violative of bye-laws, and whether a writ petition under Article 226 of the Constitution is maintainable against a private society
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Final Decision
The Supreme Court allowed the appeal, quashed the allotment of super deluxe flats to respondent Nos. 3 and 4, and remanded the matter to HEWO Society for fresh consideration in accordance with bye-laws and principles of fairness
