1993 Supreme(Del) 374
High Court Of Delhi
SATISH CHANDRA - Appellant
Versus
REGISTRAR OF CO-OPERATIVE SOCIETIES - Respondent
Civil 527 of 1990
Decided On : 07/16/1993
KAILASH VASUDEV, Vanita Sahni
Headnote:DELHI CO-OPERATIVE SOCIETIES ACT 1972 - Section 32 — Registrar after considering the report of the Enquiry Officer refused to supersede the committee or to appoint Administrator-Court under Article 226 is not to sit as a Court of Appeal over the decision of Registrar.
Held:
It is not for this Court to sit over the judgment of the Registrar of Co-operative Societies. This does not mean that this Court is without power to reappraise and re-evaluate the finding of the Registrar if the same are vitiated by mala fide, arbitrariness or are based on irrelevant consideration or are a result of non-application of mind or against the principles of natural justice. But merely because some one has complained the Registrar must appoint an Administrator would be stretching too far the provisions of this Act and will make the functioning of the Co-operative Societies impossible.-
Section 34 — is not unconstitutional or ultra virus the constitution.
The argument advanced by the petitioners is that when the constitution of the committee is invalid right from its inception and they have been challenging it before the appropriate forum acts done or purported to have been done by the said committee are nullity. Though this argument is of no force for challenge the unconstitutionally or the virus of Section 34 of the Act, it must be made clear that from the language of this Section it is amply clear that the legislative intentions are to validate acts of society or its committee or of any officer which may otherwise ought to have been invalid on account of any defect in the procedure or in the constitution of the society or of the committee. This has been incorporated with the view that if a committee or an officer authorised on that behalf takes a decision, spends money of the members of the society in the construction of building or flats or other activities as per the objects of the Society subsequently it cannot be said that because that committee or the officer there was any defect in the appointment of such officer or the election of such committee on account of any defect in procedure in the constitution of the society or its committee, the building or the flats so constructed be demolished because the ultimate sufferers in the process will be a larger members of the society.
DELHI CO-OPERATIVE SOCIETIES RULES - Rule 53(3)-as amended in 1988-is not ultra virus or unconstitutional.
( 1 ). This is a petition filed by the petitioners praying, inter alia, to declare that amenoed Rule 53 of the Delhi Co-operative Societies Rules, 1973 (for short the Rules) as unconstitutional a (nd consequently any business transacted at meetings pursuant to the said Rule to be,illegal and inoperative. The petitioners have further prayed thatsec. 34 of the Delhi Cooperative Societies Act, 1972 be declared unconstitutional and ultra vires of the Constitution. Lastly, the petitioners have prayed for issuance of a writ of mandamus to the Registrar, Co-opeative Societies to forthwith appoint an Administrator of the respondent-Society under Sec. 32 of the Delhi Co-operative Societies Act, 1972.
( 2 ). Briefly stated the facts leading to the filing of the writ petition are that the petitioners were members of The Supreme Co-operative Group Housing Society Ltd. The land to the Society was given on 3rd May, 1983 at Mayur Vihar Phase-I. The Society appointed M/s Raj Rewal as their architect. The main grievance of the petitioners had been that the appointment of the Architect Mr. Raj Rewal was illegal as he charged 3 per cent as his professional fees on the cost of project. According to the petitioners the appointment of the said Architect on 6th January, 1984 by the General Body was illegal as there was no quorum nor the agenda circulated contained the item of such appointment.
( 3 ). The petitioners who are advocates appeared in person inter alia argued that under bye law 19 (v) of the Society an item not on agenda ought not to have been discussed. The petitioners moved theregitrar, Cooperative Societies under Sec. 60 of the Delhi Cooperataive Societies Act on 5th September, 1986. The disputes were referred to the Arbitrator who rejected the claims of the petitioners. Against the said order the petitioners filed an appeal under the Act before Delhi Co-operative Tribunal which was also dismissed on 20th February, 1989 by a well reasoned order. It is important to reproduce the following paragraphs of the said order:-
"1 have considered the averments made on behalf of the appellants on both the counts. I find that it has rightly been held by the learned Arbitrator that the question of approval of the plans prepared by the Architect cannot be disassocited from the appointment of that very Architect as the issue of approvals of plans is co-related to the issue of appoitment of the Architect. The issue of approval of the plans has not been challenged on behalf of the appellants. Further, I find that the appellants were always present at the time of both the meetings of the Managing Committee and therefore it has rightly been held by the. Arbitrator that since no timely objection was raised, it does not now lie with the appellants to assail the appointment of the Architect. Coming to the next issue regarding the question of bifurcation of the Society, I again find that the learned Arbitrator has rightly come to the conclusion that the appellants are at liberty to pursue this matter with the Registrar Cooperative Societies. . The above decision, to my mind, therefore, does not suffer from any legal infirmity. "
( 4 ). Aggrieved by the said order the petitioners filed a writ petition in this Court being Civil Writ No. 454 of 1989 on 6th April, 1989. The said writ petition was dismissed on 7th April, 1989 in limine. The petitionres instead of filing a Special Leave Petition in the Supreme Court for reasons best known to them, though as. pointed out earlier both are lawyers by profession, filed a writ petition being CW 58 of 1989 under Article 32 of the Constitution of India before the Hon ble Supreme Court. In the said writ petition the petitioners say they have prayed for the same prayers as have been agitated in the present writ petition before us. However, the said writ petition filed before the Supreme Court was withdrawn by the petitioners on 25th January, 1990, before even notice was issued therein, with the liberty to