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2000 Supreme(Del) 238

High Court Of Delhi
INDER SAIN SHARMA - Appellant
Versus
REGISTRAR, COOPERATIVE SOCIETIES - Respondent
Civil Writ 738 of 1998
Decided On : 02/29/2000

Advocates Appeared:
ANIL AMRIT, M.P.RAJU

Headnote:Housing - Allotment of fiat — Non-payment of Installment despite opportunity — Expulsion of members — Construction of flats by Society is dependent on receipt of installments from member — No other fund except to rely upon payment of installments — Intention to pay not demonstrated by offering payment during the pendency of proceedings — Order of expulsion affirmed.

M. K. SHARMA,j

( 1 ) THIS writ petition is directed against the order of the Registrar, Cooperativesocieties, dated 26. 8. 1997 as also the order dated 7. 11. 1997 passed by theappellate Authority, namely, the Financial Commissioner, Delhi.

( 2 ) THE petitioners were members of respondent No. 3/society. The Society videits General Body Meeting held on 6. 7. 1996 and 27. 7. 1996 passed a Resolutionexpelling 35 members including the petitioners herein for non-payment of theinstalment which was required to be paid in terms of the demand of the Society. Theaforesaid order of expulsion was sent to the Registrar, Cooperative Societies forconfirmation on the basis of which the Registrar, Cooperative Societies initiatedproceedings on which notices were issued to the petitioners as well. During theproceedings before the Registrar, it was contended on behalf of the Society that allthe 35 members including the petitioners were expelled for non-payments of the firstinstallment of cost of land demanded by the Delhi Development Authority and,therefore, their expulsion was justified. It was also contended that charging of interestof flat rate of 18% was also justified as also the demand of Rs. 25,000. 00 ascompensation. lt was contended on behalf of the said 35 members that expulsion isagainst the Rules and that the Society had levied interest at a higher side, that is at18% in violation of the directions issued by the Registrar, Cooperative Societies. Itwas also contended that the demand of Rs. 25,000. 00 was also uncalled for.

( 3 ) THE Registrar considered the records and the contentions raised on behalf ofthe expelled members as also on behalf of the Society and thereafter proceeded torender his decision as follows;

"1. As regards interest rate 18% the society has already conceded vide itsletter dated 22. 8. 97 that the rate of interest @ 18% will be divided in twoparts i. e. , 18% and 12%. The amount paid to the DDA by the society willattract interest @ 18% and the amount due from the defaulting members @12%. The society has already adjusted the interest and calculated the samefrom the due date of payment of installments. 2 As regards, the amount of Rs. 25,000/. I find that this was charged fromthe members who were enrolled provisionally and who had to pay provisionallyand who had to pay substantial interest. They redeemed the society fromamount of Rs. 4,57,632. 00 as interest. Had the society not made the paymentwithin the time allowed by the DDA,dda would have forfeited 10% cost ofland. It would have cost monetary loss as well as mental shock to themembers who have paid the cost of land. In my opinion, therefore, thisamount is reasonable and should be paid by each defaulter member. 3. As regard Rs. 90,000. 00 raised as final installment by the society, thiscannot be acceded to at this juncture because it is an amount raisedsubsequent to expulsion proceedings of which no notice had been sent to the. defaulter members. For this amount, the society has to give opportunity tothe defaulter members. Since the defaulter members have now come toknow, they have made this payment. They are directed to pay the samealong with other dues. However, society has conceded that no interest will becharged on this amount. On the basis of the above observations and directions each defaultermember is directed to pay Rs. 3,327,554. 00 (principal amount with interest andrs. 90,000. 00) and Rs. 25. 000. 00. The total amount comes to Rs. 3,62,554. 00. The plea of the defaulter members that they should be given reasonable timeto make payment as most of them have to apply for the loan from variousinstitutions, I am inclined to give them one month s time from the date ofannouncement of this order to make the payment either in cash or bydemand draft failing which, they will stand expelled from the society.

( 4 ) IT is thus apparent that the Registrar granted the petitioners an opportunity tomake payment of the amount indicated therein within a time bound programme b





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