2008 Supreme(Del) 374
IN THE HIGH COURT OF DELHI
Mukul Mudgal and Aruna Suresh, JJ.
Dr. Parma Nand SharmaAppellants
Versus
Lt. Governor and Ors.Respondent
W.P. (C) No. 474/1982, CMs 2392, 5687, 6424 and 8220/04 and 9696/05
Decided On: 28.03.2008
Advocate Appeared
For Appellant/Petitioner/Plaintiff: Arun Mohan, Sr. Adv., R.K. Gupta and Arvind Kumar, Advs.
For Respondents/Defendant: M. Chandramani Bhardwaj, Adv. for Sujata Kashyap, Adv. for RCS and Arun Kathpalia, Adv. for R-4
Headnote:Delhi Cooperative Societies Act, 1973
Sections 36 & 76 - Cooperative House Building Society--Name of the petitioner, removed from list of members--Appeal against the resolution of expulsion, lie under Section 76--User of a property for commercial purposes would not constitute a violation of Rule 25 inviting disqualification--Resolution, passed by Society, quashed and set aside.
Mukul Mudgal, J.
1. The petitioner has filed the present writ petition for setting aside the Resolution and order dated 14th January 1978 passed by the respondent No. 4 Ishwar Nagar Cooperative House Building Society Ltd., (hereinafter referred to as the "Society") whereby the name of the petitioner had been removed from the list of members of the respondent No. 4 society as well as the confirmation of such an order through the Registrar, Cooperative Societies on 17th May, 1978 and the order of the Deputy Registrar dated 5th November, 1981 on a reference made by the petitioner by the nominee of the Registrar.
2. The facts of the case briefly stated are as follows:
a) The petitioner Dr. P.N. Sharma (hereinafter referred to as the Petitioner) was on 11th March 1961 vide membership No. 35 enrolled as a member of the respondent society. The Property No. A-19/A Kailash Colony, New Delhi was purchased by the Petitioner HUF for running a nursing home and in 1969 the nursing home started functioning. Later, the membership of the petitioner from Respondent No. 4 society was terminated on the ground that the petitioner owned another property, i.e., A-19/A, Kailash Colony, in Delhi, since as per Rule 25 (1)(c) of the Delhi Cooperative Societies Rules, upon owning another property the petitioner was not entitled to be a member of a Cooperative Housing Society. The petitioner was also expelled on 14th January 1978 by the society under Section 36(1) of Delhi Cooperative Societies Act, 1973 (hereinafter referred to as the "Act") for being a persistent defaulter as he had not paid the dues demanded by the society. The action of the society expelling the petitioner was approved by the Deputy Registrar, Cooperative Societies, on 17th May 1978. On 26th February 1980 one application was filed under Section 60 of the Act for reference of dispute to arbitration by the petitioner. The Reference was dismissed on 5th November, 1981 by the Deputy Registrar. This has led to the present writ petition.
3. The learned senior counsel for the petitioner Shri Arun Mohan submitted as follows:
a) On 31st March 1973, the law applicable to the present case was the Bombay Cooperative Society Act (7 of 1925) and the Rules applicable were the Delhi Cooperative Society Rules 1950, and the provisions of the above applicable statute /Rules, neither prohibited a member from owning or acquiring any other residential property nor deemed the interest in an HUF as being that of the member for purposes of membership. Therefore, the act of the Petitioner in acquiring a plot for constructing a nursing home in a residential colony in 1968 was not a breach of provisions of the 1925 Statute or the 1950 Rules. In short, on 31st March 1973, the Statute or the Rules did not prohibit a residential house owner from being a valid member of the Cooperative House Building Society.
On 31st March 1973, A-19/A, Kailash Colony was a HUF property. It was not a residential house, but a fully constructed and functional nursing home.
b) (i) The Petitioners membership was saved as an accrued right principle, under Section 98 of the Delhi Cooperative Societies Act (35 of 1972) which repealed the Bombay Cooperative Societies Act, 1928. Section 98 of the Act reads as follows: Provided that the repeal shall not affect:
.(a) xxxxx
.(b) Any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or
.(c) xxxxx
.(d) xxxxx
In S.N. Maira v. UOI 46(1992)DLT337 , the Division Bench of this Court held as follows:
...Therefore, we are of the view that the rights, privilege, obligations etc. which had been acquired by such members or had accrued to them under the 1925 Act having been specifically saved by Section 98 of the 1972 Act, the same could not have been taken away after the coming into force of 1972 Act. Therefore, we do not find any defect or illegality in the exercise of the right of vote by such member.
(ii) While the rule-making power is subservien