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1990 Supreme(Del) 270

High Court Of Delhi
A.V.ASHOKAN - Appellant
Versus
REGISTRAR, COOPERATIVE SOCIETIES - Respondent
Civil 955 of 1989
Decided On : 08/31/1990

Advocates Appeared:
K.K.JAIN, Kirti Uppal, L.N.KUMAR, Pardip Nandrajog, Rakesh Munjal, Reva Khetrapal, Sujata Kashyap

The court held that the allotment of flats in a cooperative housing society should be made according to seniority, taking into account the date of payment. However, the court also granted a grace period for those who failed to make timely payments.

Headnote:

CO-OPERATIVE HOUSING SOCIETY - ALLOTMENT OF FLATS - CRITERIA - SENIORITY AND PAYMENT - INTERPRETATION OF CIRCULAR - DELAY IN PAYMENT - GRACE PERIOD.

Fact of the Case:

The case involved the allotment of flats in a cooperative housing society. The society had issued a circular specifying the criteria for allotment, including seniority and payment deadlines. However, many members had failed to make timely payments. The court was tasked with determining how to allocate the remaining flats among the defaulters.

Finding of the Court:

The court held that the allotment of flats should be made according to seniority, taking into account the date of payment. However, the court also granted a grace period of 9 months for those who had failed to make timely payments. The court also directed the society to prepare a revised list of members to be allotted flats, taking into account the new criteria.

Issues: 1. How should the remaining flats be allocated among the defaulters? 2. Should a grace period be granted for those who failed to make timely payments?

Ratio Decidendi: The court held that the allotment of flats should be made according to seniority, taking into account the date of payment. However, the court also granted a grace period of 9 months for those who had failed to make timely payments. The court reasoned that this was a fair and equitable way to allocate the remaining flats, taking into account the interests of both the society and the members.

Final Decision: The court directed the society to prepare a revised list of members to be allotted flats, taking into account the new criteria. The court also directed the society to allot the remaining flats to the 9 members who were found to be eligible according to the new criteria.

B. N. Kirpal, J.

( 1 ) TODAY we have had the occasion to consider the caseafresh in the light of the material which has now been placed before us.

( 2 ) WE find that persons who paid the full amount after 1 5/12/1986 really fall in a single category and it will not be fair to treatthem separately. Furthermore, we. find that some regard has also to be givento the seniority of the members. The Society had been registered a numberof years ago and there are some very old members who had been waiting forallotment but unfortunately there was delay in making payment when the timepaying the amount came. In drawing up the list of members who made thepayment after 15/12/1986 we find that most of the money has beenpaid by the members within a period of two or three months. Merely becauseperson who is at serial No. 1, for example, has paid money one week after aperson who became a member many years thereafter should not be a reason forgiving higher weightage to the date of payment. All members Who paid moneyafter 15/12/1986 are defaulters. Therefore, the list of defaulters canbe prepared on either of the two basis (1) according to the overall seniority, (2)according to the date of payment. Considering that persons have waited for anumber of years and because the criteria of payment has been taken into consideration in preparing the list for Groups a and b i. e. those persons whohave made full payment by 15/12/1986, we feel that the list of Group c should be prepared according to seniority of members. The effect of thiswould be that the list of Group c will have to be reframed by the Administrator according to seniority and the date of payment will be disregarded. Thiswe feel is more equitable than what we had ordered vide our order dated 30thapril, 1990 and 17/08/1990 and this would meet the ends of justice. Both the payment criteria and the seniority would have been taken into consideration in preparing the list.

( 3 ) WE, therefore, direct the Administrator to re-cast the list forcategory c and Category f flats at Patpar Ganj in accordance with ourorders, namely, group a will consist of old members who had paid 100% upto 15/12/1986, group b will consist of new members who had paid100% by 15/12/1986 and group c will consist of members who willbe arrayed according to their seniority in the Society and as per their membership number.

( 4 ) WE are informed by the Administrator that the process of allotmentof Patpar Ganj category c flats has already commenced and we now direct theadministrator to start the process of allotment for Patparganj category "f flatsas well in the manner similar to that of allotment of category c flats. Theallotment should be completed before Diwali of 1990. The Registrar is directedto grant the clearance within 15 days of his getting the relevant papers. Therevised list of members to be allotted flats as per orders passed today read inconjunction with our earlier order of 30/04/1990 should beplaced alongwith an affidavit within a week. The Administrator should file the reportregarding the allotment by the next date of hearing. To come up on 2 6/10/1990.

( 5 ) BEFORE concluding, we would like to express our appreciation andgratitude to the assistance which we have received from the Administrator andshri Munjal.

( 6 ) WITH regard to Chilla, we are informed by Shri Munjal that there are,in Category c , 348 flats. 299 flats have already been allotted to those personswho had made the payment in time. 42 flats have been reserved for persons whowere registered at Patparganj who are to be accommodated by Chilla. Twopersons have opted out of the aforesaid, for a different category of flats. Theresult of this is that there are 9 vacant flats available as of today.

( 7 ) WE find that according to the Circular issued by the Administratorrs. 1,20,000. 00 had to be deposited by 15/10/1988. A list of members,other than those to whom allotment has been made and the Patparganj overflow, has been prepared and





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