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2018 Supreme(Del) 3138
IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJIV KHANNA, CHANDER SHEKHAR, JJ.
Bhatnagars’ Cooperative House Building Society Ltd. – Petitioner
Versus
Sandeep Bhatnagar and Another – Respondents
Writ Petition (Civil) No. 6966 of 2018
Decided On : 09-07-2018
For the Petitioners: Mr. Sanjay Kumar Pathak, Ms. K. Kaomudi Kiran Pathak, Mr. Sunil Kumar Jha.
For the Respondent: Mr. Jawahar Raja, Mr. Rajat Kumar.
The principle of fairness and justice in not allowing the unsettling of settled issues after a significant period of time.
Headnote:
Cooperative Society - Membership Transfer - Delhi Cooperative Societies Act, 2003, Section 28(1) - Rule 25(1)(c) of the Delhi Cooperative Societies Rules, 1973 - Ishwar Nagar Cooperative Housing Building Society vs. Parma Nand Sharma and Others, (2010) 14 SCC 230
Fact of the Case:
The Cooperative Society challenged an order dismissing their revision petition against the transfer of membership in favor of Late Brij Nath Swarup Bhatnagar, which was questioned after nearly 20 years of acceptance.
Finding of the Court:
The court dismissed the writ petition on the ground of delay and laches, stating that the Cooperative Society should not be allowed to unsettle settled issues after a significant period of time.
Issues: Delay in challenging the membership transfer, application of cooperative society rules, and fairness in questioning settled issues.
Ratio Decidendi: The court emphasized that the Cooperative Society should not be allowed to go back in time by 20 years to question the membership transfer, as it was unfair and unjust to unsettle settled issues after a significant period of time.
Final Decision: The writ petition was dismissed on the ground of delay and laches, with no costs awarded.
SANJIV KHANNA, J.
1. In this writ petition filed on 31st May 2018, Bhatnagars’ Cooperative House Building Society Limited (Cooperative Society, for short) has challenged order dated 29th September, 2015 passed by the Financial Commissioner in Case No. 99/2013. The impugned order dismisses the revision filed by the Cooperative Society against the order passed by the Registrar of Cooperative Societies dated 24th January, 2013.
2. The present writ petition has been filed after a long delay of nearly three years. On being questioned, learned counsel for the Cooperative Society explaining the delay submits that the respondent, Sandeep Bhatnagar son of late Brij Nath Swarup Bhatnagar, had filed an appeal/application under Section 28(1) of the Delhi Cooperative Societies Act, 2003 (2003 Act, for short) before the Registrar, Cooperative Societies for transfer of membership in his name on death of his father. By order dated 26th February, 2018, the prayer was allowed. This period should be excluded. We are not satisfied with the aforesaid explanation and justification. Aforesaid explanation has no connect and does not justify delay of nearly three years in challenge to order dated 9th September, 2015. Proceedings initiated by the respondent under Section 28 were in nature of execution and for effective and complete implementation of the order dated 29th September, 2015. Cooperative Society in-spite of order dated 29th September, 2015 had failed to act in accordance with law.
3. The facts exposit that one Prakashwati had become member of the Cooperative Society on 11th October, 1955. Prakashwati in 1958 had purchased a residential property. On 25th January, 1967, Prakashwati had made an application for transfer of membership to her son-in-law Late Brij Nath Swarup Bhatnagar. On 27th February, 1967, request for transfer of membership in favour of Late Brij Nath Swarup Bhatnagar was accepted. Thus, Parakashwati ceased to be a member of the Cooperative Society and Late Brij Nath Swarup Bhatnagar became a member.
4. In 1975, land was allotted to the Cooperative Society and plots were developed and carved out. Late Brij Nath Swarup Bhatnagar made payments towards development and cost of land. Cooperative Society had accepted the payments. On 3rd October, 1981, plot No. 85 was allotted to Late Brij Nath Swarup Bhatnagar and registered sub-lease deed was executed.
5. On 12th December, 1986, a show cause notice was issued by the Cooperative Society to Late Brij Nath Swarup Bhatnagar why the sub-lease deed of the plot should not be cancelled as Prakashwati had incurred disqualification when she had purchased residential plot in 1958 and, therefore, transfer of membership in favour of Late Brij Nath Swarup Bhatnagar in 1967 was illegal. Subsequently, it was observed and resolved by the Cooperative Society that transfer of membership in favour of Late Brij Nath Swarup Bhatnagar was bad and reference was made to Registrar, Cooperative Societies and Delhi Development Authority for approval of cessation of membership and cancellation of the sub-lease deed of the plot.
6. In these circumstances, Late Brij Nath Swarup Bhatnagar had filed a petition under Section 87 of the 2003 Act, before the Registrar, Cooperative Societies, which was accepted vide order dated 18th January, 2013.
7. Cooperative Society had then preferred a revision petition, which vide the impugned order dated 29th September, 2015 has been dismissed by the Financial Commissioner.
8. Counsel for the Cooperative society relies on Rule 25(1)(c) of the Delhi Cooperative Societies Rules, 1973 and states that Prakashwati had incurred disqualification as no person could have continued as a member of a cooperative society if he or she, spouse or dependent children were owner a residential house. Reliance is placed on Ishwar Nagar Cooperative Housing Building Society vs. Parma Nand Sharma and Others, (2010) 14 SCC 230.
9. Late Brij Nath Swarup Bhatnagar was enrolled as a member in 1967. This
