GITA MITTAL, J.

1. The present matters relate to the Delhi Co-operative Group Housing Society Ltd. (hereinafter referred to as ‘the society’). The private parties are admittedly members and flat owners in the said Society.

2. Before dealing with the rival contentions, we propose to note some salient facts about the Society. The Society was registered under the provisions of the Delhi Co-operative Societies Act, 1972 (hereinafter referred to as ‘DCS Act’) on the 17th of January 1980 with the sanctioned strength of 212 members.

3. It is also an admitted position that on 8th of April 1984, the society applied to the Delhi Co-operative Housing Finance Corporation (hereinafter referred to as ‘DCHFC’) for grant of loan of Rs. 1.5 crores for construction of flats. A loan of Rs. 1.26 crores was sanctioned on 17th November, 1985 pursuant to a loan agreement. The society also executed a mortgage deed whereby the land allotted to the society was mortgaged with the DCHFC.

A further loan of Rs. 18 lakhs was sanctioned and released to the society against a supplementary loan agreement and a further mortgage deed was executed with the DCHFC in November, 1987.

4. It is essential for us to note that out of the total strength of 212 members, the loan was granted for the benefit of only 162 members. The society admits that 50 of its members did not take any benefit of the loan sanctioned and released by the DCHFC. On the other hand, these 50 members were beneficiaries of financial facilities taken by them from the government departments where they were employed.

5. The private respondents in W.P.(C)No.8751/2015 did not take any facility from DCHFC. However, Shri P.L. Jain, predecessor-in-interest of Smt. Meenu Tomar (petitioner in W.P.(C)No.6635/2014) did take the loan. The loan of some members, including that of Shri P.L. Jain, was secured by a group insurance with the Life Insurance Corporation.

6. On 10th of April 1986, the society obtained possession of the Plot No.74, I.P. Extension, Patparganj, Delhi admeasuring 3.533 acres from the Delhi Development Authority for construction of 212 flats for its members.

7. In 1988, construction of the flats was completed. By a draw of lots held on the 27th of March 1988, the constructed flats were allotted to the members. While handing over the charge on the 4th of October, 1990 to the newly elected managing committee, the Secretary of the outgoing Managing Committee duly noted that construction jobs and fitting of the flats stood completed and keys of the flats have been handed over to the members.

These facts establish that on these dates, construction of the flats stood completed.

8. Mr. Rajat Aneja as well as Mr. Abhimanue Shrestha, learned counsels for the private parties have asserted that this material factor would clearly show that therefore, after these dates, there was no occasion for requirement of any additional funds or diversification of any funds of the Society towards construction activities for the reason that the same stood completed.

9. We propose to decide the issues pressed before us in the following manner :

I. Liability of the private members in these petitions (paras 10 to 18)

II. Misappropriation of Societal funds and Mismanagement of financial affairs by managing committees (paras 19 to 25)

III. Redressal action taken by DCHFC and recovery proceedings (paras 26 to 34)

IV. Resolutions of the Society (paras 35 to 48)

V. Individualisation Scheme (paras 49 to 52)

VI. Recovery from whom? (paras 53 to 63)

VII. Execution of what and against whom? (paras 64 to 78)

VIII. Legal objection (paras 79 to 80)

IX. Diversification of funds (paras 81 to 87)

X. Objection to the maintainability of the writ petition W.P.(C)No.6635/2014 under Article 226 of the Constitution of India on the ground of availability of an alternate remedy under the Delhi Cooperative Society Act (paras 88 to 97)

XI. Submission that the DCHFC is having a first charge over the entire project of the Society (paras 98 to 100)

XII. Challe