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2010 Supreme(Del) 1136
IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjay Kishan Kaul, J.
Rajdhani Co-op. Group Housing Society Ltd. - Appellant
Versus
Presiding Officer, Delhi Co-op. Tribunal - Respondent
W.P. (C) No. 1715/2001
Decided On : 04-08-2010
Mr. V.P. Chaudhary, Sr. Advocate with Mr. Nitinjya Chaudhary and Ms. Sushma, Advocates for the Petitioner.
Mr. Rakesh Munjal, Sr. Advocate with Mr. Ankur Arora and Mr. Aakash D. Pratap, Advocates for the Respondent No. 3.
Ms. Sujata Kashyap, Advocate for Respondent No. 4 with Mr. Surender Kumar, LDC (Zonal Officer RCS).
Headnote:
Delhi Co-operative Societies Act, 1972 - Section 25, 60 r/w Rule 25 & 77 of Delhi Co-operative Societies Rules, 1973 - Transfer of membership - Disqualification - No disqualification for being a member merely because the transferee is not a blood relation of the original member - A transferee member is not debarred from being a member on grounds which are disqualification for an original member - Petitioner Society cannot refuse to recognise the transfer of membership from the original member - Moreover, a member cannot be prejudiced on an assumption that there is some alleged collusion inasmuch as there is absolutely nothing on record to establish any alleged collusion and knowledge of the respondent No. 3 that the then Secretary did not act for and on behalf of the petitioner Society - No interference - Petition dismissed.
Valmiki J. Mehta, J.
1. By this writ petition under Article 226 and 227 of the Constitution of India, the petitioner Rajdhani Co-operative Group Housing Society Ltd. seeks quashing of the Award dated 31.5.2000 passed by the Arbitrator and the order dated 17.11.2000 passed by the Delhi Co-operative Tribunal dismissing the appeal of the petitioner and upholding the Award dated 31.5.2000.
2. The dispute in the present case is with regard to the denial of membership by the petitioner to the respondent No. 3 herein, namely, Sh. S.K. Sharma. Disputes were referred for arbitration between the petitioner and the respondent No. 3 by the following order:-
"Arb. No. 05/JR-II/GH/94-95/1217 Dated: 16-1-95
In the matter of:
Sh. S.K.Sharma
E-1/219, Lajpat Nagar-I
New Delhi....... CLAIMANT
Vs
Rajdhani Co-op. G/H Society Ltd.,
94, Patparganj, Delhi .....DEFENDANT
ORDER
The present petition has been filed by Sh. S.K. Sharma, against Rajdhani Cooperative G/H Society Ltd. on 12.4.94 U/s 60 of the Delhi Cooperative Societies Act, 1972. In the petition it has been stated that claimant is a bonafide member of the society and has paid the entire amount as demanded by the society, even though the defendant society has not allotted flat to the claimant.
Notice to the respondent society was issued for 2.5.94. Sh. R.N.Bhardwaj, Advocate appeared on behalf of the society and filed reply on 1.8.94. In the reply it has been stated that claimant is not a bonafide member of the society as the transfer of membership which he claims is not within the blood relation of Sh. S.K.Govil who was the bonafide member of the society. The transfer of membership in the name of claimant was not legal and in accordance with the provisions of Delhi Cooperative Society Act and Rules.
Sh. Rakesh Munjal, Advocate for the claimant appeared on 3.10.94 and filed rejoinder. Arguments were also heard, on the same day.
I have considered the arguments put forth by both the parties and I am satisfied that the points raised by the claimant touches the business and management of the society and, therefore, the dispute raised by the claimant fulfils the provisions of Section 60 of the DCS Act, 1972 and it is a fit case for arbitration U/s 61. The Arbitrator shall examine as to whether transfer of membership in the name of claimant was legally justified and under what circumstances same was transferred in the name of claimant.
The claimant is directed to deposit a sum of Rs. 750 as arbitration fee within 15 days of issuance of this order through demand draft/pay order drawn in favour of Recovery Officer, Cooperative Societies, Delhi Administration, Delhi otherwise the case will be dismissed for want of arbitration fee.
Given under my hand and seal on this day of 11th January, 1996.
(C.P.TRIPATHI)
JOINT REGISTRAR (ARB)"
3. The underlined portion of the aforesaid order dated 16.1.1995 shows that the issue in the arbitration proceedings only was as to whether transfer of membership in the name of the respondent No. 3 was legally justified and under what circumstances the membership was transferred in the name of the respondent No. 3.
4. The original member of the petitioner Society was Sh. S.K. Govil and his son Sh. Rakesh Govil, Secretary, was controlling the affairs of the Society. There is no dispute that Sh. S.K. Govil was a bona fide and regular member of the petitioner Society. Sh. S.K. Govil with membership at serial No. 75 transferred to the respondent No. 3 his membership and the necessary papers in this behalf including the share certificate were signed by the then Secretary of the petitioner Society, namely, Sh. Rakesh Govil. A letter was also given to the respondent No. 3 for creation of the mortgage of the flat and consequently loan was taken by the respondent No. 3 from his employer M/s. Engineers India Limited. This loan was repaid by deductions from the salary of the respondent No. 3 with his employer. Respondent No. 3 thereafter regularly paid all the amounts demanded by the Society and there is
