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2020 Supreme(Del) 212
IN THE HIGH COURT OF DELHI AT NEW DELHI
D.N. PATEL, C.HARI SHANKAR, JJ.
Viresh And Anr. - Petitioners
Versus
The Registrar Of Co-Operative Societies And Ors. - Respondents
W.P.(C) 2585 of 2020
Decided On : 06-03-2020
Advocate Appeared:
For the Petitioner: Mr. Alakh Alok Srivastava, Adv.
The main legal point established in the judgment is that disputes related to the management and business of a cooperative society are covered under Section 70 of the Delhi Co-operative Societies Act, 2003, and are referable to arbitration under Section 71 of the Act.
Headnote:
Mandamus - Cooperative Society Dispute - Delhi Co-operative Societies Act, 2003, Section 70
Fact of the Case:
The petitioners sought a writ of mandamus to quash resolutions passed by the Cooperative Society and to challenge a communication from the Registrar of Co-operative Societies. The court found that the dispute raised by the petitioners is covered under Section 70 of the Act, which pertains to the management and business of the cooperative society. The court dismissed the writ petition, stating that the dispute is referable under Section 71 of the Act to arbitration.
Finding of the Court:
The court found that the dispute raised by the petitioners is covered under Section 70 of the Act and is referable to arbitration under Section 71 of the Act.
Issues: The main issue was whether the dispute raised by the petitioners is covered under Section 70 of the Delhi Co-operative Societies Act, 2003.
Ratio Decidendi: The court held that the dispute raised by the petitioners is about the management and business of the cooperative society, which is covered by Section 70 of the Act. Therefore, the dispute is referable under Section 71 of the Act to arbitration.
Final Decision: The court dismissed the writ petition, stating that the dispute is referable under Section 71 of the Act to arbitration.
ORDER :
D.N. PATEL, J.
W.P.(C) 2585 of 2020
1. This writ petition has been preferred with the following prayers:
“a. To issue WRIT of Mandamus under Article 226 of Constitution of India for quashing letter dated 22.11.2019 issued by the office of the office of Registrar of Co-operative Societies. NCT of Delhi. Old Court Building. Parliament Street. New Delhi, advising the petitioners to file a claim/dispute under section 70 of DCS Act. 2003 before the Arbitration Branch with respect to the issue related to GBM dated 22.03.2015 by observing that such an issue can be resolved only by Way of Arbitration.
(b). To issue Writ of mandamus directing the respondent no.1. Registrar of Co-operative Societies. NCT of Govt. of Delhi to declare the resolution under agenda item 9 passed in the GBM of the respondent society held on 22nd March. 2015 as null and void.
(c). To issue Writ of mandamus directing the respondent no. 1. Registrar of Co-operative Societies. NCT of Govt. of Delhi to declare the resolution in agenda item 14 &15 passed in the GBM of the respondent society held on 24th September, 2017 as null and void.
(d). To issue Cease and Desist Order to respondent no 2 to 4 to stop and desist charging fee paid to its advocate from petitioner no. 1 & 2 and to delete the amounts already charged in the bills along with the interest issued to the petitioner no. 1 & 2 and also directions may be issued not to include such amounts in the bills issued to the petitioners in future and also issue upto date receipts for payments made by the petitioners.
(e). To direct respondents no.2 to 4 to delete the aforesaid resolutions passed In the general body meeting held on 22.03.2015 as agenda Item no. 9 and & agenda Item nos. 14 & 15 In the meeting held on 24.09.2017.
(f). To award cost of Rs. 2.00,000/- (Rs.Two Lakhs) In favour of the petitioners to cover litigation expenses and also towards mental agony and harassment by the respondent society and Its office bearers.
(g). To pass any other or further orders as this Hon'ble Court may deem fit and proper in the facts and the circumstances of the case and in favour of petitioners.”
2. Having heard learned counsel for the petitioners and looking to the facts and circumstances of the case, it appears that the petitioners have grievance against the Cooperative Society, especially about the Resolution passed by the Cooperative Society in the General Body Meeting dated 22nd March, 2015, which has been reproduced in paragraph 5 to the memo of this writ petition. Second grievance has also been ventilated by the petitioners about the Resolution dated 24th September, 2017 passed by the Cooperative Society.
3. The petitioners have also challenged a communication dated 22nd November, 2019 of Assistant Registrar of the Government of NCT of Delhi, Office of Registrar Cooperative Societies.
4. Looking to the provisions of Delhi Co-operative Societies Act, 2003 (hereinafter referred to as “the Act”) and the Rules made thereunder, an efficacious alternative remedy is available with the petitioners under Section 70 of the Act. Office of Registrar, Cooperative Societies has requested the petitioners to avail the claim under Section 70 of the Act; so that, arbitration can take place and the disputes can be resolved. We see no reason to entertain this writ petition, looking to the aforesaid communication dated 22nd November, 2019. The said communication is absolutely in consonance with the provisions of the Act and the Rules made thereunder. Much has been argued out by the learned counsel for the petitioners that the challenge of the petitioners to the Resolutions of the Cooperative Society dated 22nd March, 2015 as well as 24th September, 2017 are not covered by Section 70 of the Act. We are not in agreement with this contention canvassed by the counsel for the petitioners, mainly for the reason that looking to the provisions of Section 70 of the Act, this dispute is about the management and the business of the Cooperative Society,
