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2007 Supreme(Del) 1280

High Court Of Delhi
MUKUL MUDGAL,ARUNA SURESH
RAJIB MUKHOPADHYAYA - Appellant
Versus
REGISTRAR COOPERATIVE SOCIETIES - Respondents
W. P. (C) 2418 Of 2006
Decided On : 07/02/2007

Advocates Appeared:
A.SHARAN, AMIT BANSAL, CHARUL SARIN, D.K.RUSTOGI, K.K.RAI, K.KAOMUDI KIRAN, M.K.Rai, MANISHA SINGH, PAYAL DAFTARI, R.K.CHAUDHARY, RAKESH MUNJAL, S.K.PANDEY, Sanjay Kumar Pathak, SARVAGYA SHARMA, Shashank Singh, SHAZIA AMBARIN, Som Dutt Kaushik, Sudhir Nandrajog, Sujata Kashyap, SURUCHI AGARWAL

Headnote:

Rule 24 (2) - Challenge to the vires of Rule 24 (2) of the Delhi Cooperative Societies Rules, 1973 - Rule 24 (2) - Summary of the Acts and Sections Referenced: The court discussed the constitutional validity of Rule 24 (2) of the DCS Rules, referring to the judgment of the Division Bench in Federation of Co-op. G/h Society and Ors. vs. Union of India and Ors., 1993 (26) DRJ (DB) P. 156, and the principles of voluntary and open membership as well as the right to form associations under Article 19 (1) (c) of the Constitution of India.

Fact of the Case:

The group of writ petitions challenged the vires of Rule 24 (2) of the Delhi Cooperative Societies Rules, 1973, as amended on 6th August, 1997 and 1st April, 2005. The main challenge was based upon the judgment of the Division Bench in Federation of Co-op. G/h Society and Ors. vs. Union of India and Ors., 1993 (26) DRJ (DB) P. 156, which related to the constitutional validity of Rule 41a of the DCS Rules.

Finding of the Court:

The court upheld the constitutional validity of Rule 24 (2) of the DCS Rules, subject to the interpretation that the bye laws of the Society shall be fully followed in entertaining the claims of memberships set up by those applying the medium of Rule 24 (2) of the DCS Rules. The court also upheld the society's right to restrict its membership in accordance with the bye-laws, regulations, and the rules of the society prospective candidates.

Issues: The main challenge was to the constitutional validity of Rule 24 (2) of the DCS Rules, based on the judgment of the Division Bench in Federation of Co-op. G/h Society and Ors. vs. Union of India and Ors., 1993 (26) DRJ (DB) P. 156, which related to the constitutional validity of Rule 41a of the DCS Rules.

Ratio Decidendi: The court upheld the constitutional validity of Rule 24 (2) of the DCS Rules, subject to the interpretation that the bye laws of the Society shall be fully followed in entertaining the claims of memberships set up by those applying the medium of Rule 24 (2) of the DCS Rules. The court also upheld the society's right to restrict its membership in accordance with the bye-laws, regulations, and the rules of the society prospective candidates.

Final Decision: The court dismissed the writ petition challenging the constitutionality of Rule 24 (2) of the DCS Rules, subject to the interpretation and directions provided in the judgment.


MUKUL MUDGAL, J.

( 1 ) THESE group of writ petitions challenge the vires of Rule 24 (2) of the Delhi Cooperative Societies Rules, 1973 (hereinafter referred to as DCS rules) as amended on 6th August, 1997 and 1st April, 2005. The Rule as amended and standing at present reads as follows:-

"24 (2 ). In case of vacancy in a housing society including group housing society where layout and building plans have been approved by the competent authority, the same shall be filled by the committee by notifying it in leading daily newspaper of Delhi in Hindi and English. In case the number of applications are more than the notified vacancies the membership shall be finalised draw of lot in the presence of authorized representative of the Registrar. "

The above rule was further amended on 1st April, 2005, which reads as follows:-

"24 (2 ). In case of vacancy in a housing society including group housing society the same shall be filled by the committee by notifying it in leading daily newspaper of Delhi in Hindi and English. In case the number of applications are more than the notified vacancies the membership shall be finalized draw of lot in the presence of authorized representative of the Registrar. "

( 2 ) FOR the sake of convenience we have taken the WP (C) No. 1403- 14/2006 titled Rajib Mukhopadhyaya and Ors. vs. Registrar of Cooperative Society and Ors. as the lead petition and the judgment on the validity of Rule 24 (2) of the DCS Rules, shall govern all the connected writ petitions.

( 3 ) THE main challenge to the constitutional validity of the above Rule 24 (2) of the Act is based upon the judgment of the Division Bench of this Court in Federation of Co-op. G/h Society and Ors. vs. Union of India and Ors. , 1993 (26) DRJ (DB) P. 156. The said judgment related to the constitutional validity of Rule 41a of the DCS Rules, which is reproduced as follows:-

"41-A. Notwithstanding anything contained in these rules or the bye-laws of the cooperative Group Housing Societies, vacancy or vacancies arising as a result of

resignation, expulsion and cessation of membership in such societies shall, until the allotment of land is made to them by the Delhi Development authority, not be filled up. Vacancy of vacancies arising after the allotment of land to such societies shall be filled up from amongst the willing registrants for flats with the Delhi Development Authority under its self-financing schemes or from amongst the members of other co-operative group housing societies, which are yet to be allotted land by the Delhi Development Authority or from amongst the members of such societies, as have not reached the stage of construction of flats. "

( 4 ) DEALING with the validity of the above Rule 41a, the Division bench of this Court affirmed the view taken by the learned Single Judge in navjivan Cooperative House Building Society v. Delhi Cooperative Tribunal, delhi, 1988 Cooperative Law Journal 75, in the following terms:-

"84. The first contention, in this behalf of counsel for the petitioners is that Rule 41a is ultra vires, unreasonable, arbitrary and is also contrary to the basic principles of cooperation. As already noted Section 4 of the Delhi cooperative Societies act, inter alia refers to the society being required to promote interests of members according to "cooperative Principles" in order to get itself registered. What are the Cooperative Principles have been dealt with by a single Judge of this Court in the case of Navjeevan Cooperative House building Society v. Delhi Cooperative Tribunal, Delhi, 1988 Cooperative Law journal 75. While referring to the book entitled "indian Cooperative Laws vis- a-vis Cooperative Principles" written by Shri P. E. Weeraman it was observed in the said case of Navjeevan Cooperative Society that there are six cooperative principles and they are all equally important and they form a system and are inseparable. These six principles are as follows:-

" (i) Voluntary and open membership; (ii)Democratic control;























































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