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2024 Supreme(Del) 967

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN, ACJ, MANMEET PRITAM SINGH ARORA, J.
G.Hemant – Petitioner 
Versus
Registrar Cooperative Societies & Ors. – Respondent
W.P.(C) 6395 of 2024
Decided on : 06-05-2024

Advocates Appeared:
For the Petitioner: Mr. Ashwani Kumar Dhatwalia, Ms.Iti Sharma and Mr. Puneet Sharma
For the Respondent: Ms. Harshita Nathrani, Adv for Mr. Sameer Vashisht, ASC(C) GNCTD, Ms. Mrinalini Sen Gupta, Standing Counsel

Under Rule 25 of the Delhi Cooperative Societies Rules, financial dependency, including for adult children, disqualifies individuals from membership to prevent multiple land allotments within families, reinforcing equitable land distribution objectives.

Headnote:(A) Delhi Cooperative Societies Act, 1972 - Section 55 - Delhi Cooperative Societies Rules, 1973 - Rule 25(1)(c)(i) - Challenge to disqualification from cooperative membership and plot allotment - The impugned order dismissed Petitioner's claim for membership, upholding findings that he was financially dependent and that his mother, an executive member of the Society, already held a plot. Concurrent findings emphasized the intent of Rule 25 to prevent multiple allotments per family for limited resources. (Paras 3, 8, 12, 16)

(B) Disqualification under Rule 25 of DCS Rules - The Rule bars individuals who, themselves or through dependents, possess a residential plot in NCT of Delhi — interpreting 'dependent children' to include financially dependent adults, disallowing further allotment to the same family due to resource scarcity. (Paras 10, 16)

(C) Article 14 of the Constitution - Negative equality argument raised against disqualification - The Court denied the claim, clarifying that equitable relief does not extend to those rightly ineligible for membership under regulatory standards. (Paras 18, 19)

Facts of the case:
Petitioner enrolled as a member in 1981, later disqualified due to dependency on parents and mother’s prior allotment. Previous orders upheld by Financial Commissioner confirmed the disqualification based on membership criteria and financial resources. (Paras 7, 12)

Findings of Court:
The disqualification adhered to legislative intent and previous judicial interpretations of Rule 25, aligning with public interest principles within the cooperative framework. (Paras 12, 16)

Issues: Whether the petitioner was rightfully disqualified based on financial dependency and prior family allotment under Rule 25; whether there was a violation of Article 14.

Ratio Decidendi: The court established that legislative intent prohibits multiple allotments within the same family to manage land scarcity; financial dependency includes adult children in membership considerations.

Result: The petition was dismissed.

Judgement Key Points

Key Points: - Rule 25 bars individuals who themselves or through dependents possess a residential plot in NCT of Delhi (!) (!) . - "Dependent children" includes financially dependent adult children, aligning with the legislative intent to prevent multiple family allotments (!) (!) . - Financial dependency of the Petitioner and his brother on their mother, who held an allotted plot, led to disqualification (!) (!) . - The Court rejected the plea of violation of Article 14, holding that negative equality claims lack merit when eligibility criteria are lawfully applied (!) . - The Memorandum issued by the RCS was struck down as inconsistent with the object of the DCS Act and Rule 25 (!) (!) . - The petition was dismissed, upholding the disqualification orders of the RCS and the Financial Commissioner (!) .

What are the grounds for disqualification from cooperative society membership under Rule 25 of the Delhi Cooperative Societies Rules, 1973?

Does financial dependency of adult children on parents qualify as a basis for disqualification under Rule 25?

Whether a claim based on negative equality under Article 14 can be entertained in a challenge to such disqualification?


Table of Content
1. petitioner challenges eligibility for membership. (Para 1 , 2)
2. petitioner's arguments against disqualification. (Para 5)
3. court's acknowledgment of factual findings. (Para 6 , 7)
4. interpretation of rule 25 of dcs rules, 1973. (Para 8 , 9 , 10 , 11)
5. reinforcement of rule 25's purpose. (Para 12 , 13)
6. discussion on legal distinctions regarding dependents. (Para 14 , 15 , 16)
7. rejection of discrimination argument and maintaining findings. (Para 18 , 19)
8. conclusion: petition disposed of. (Para 20)

JUDGMENT :

MANMOHAN, ACJ.

1. Present writ petition has been filed challenging the impugned order dated 19th March, 2012, passed by the Respondent No.1 – Registrar of Co- operative Societies (‘RCS’) in F. No. F46/1411/HB/WEST/422-424, holding that the Petitioner herein was not eligible to be enrolled as a member in Respondent No. 2 – Mianwali District Cooperative House Building Society Ltd. (‘Society’) and consequently, dismissed his claim for allotment of a plot, ad-measuring 400 sq. yds.

1.1. Petitioner has also impugned the order dated 15th December, 2023, passed by the Financial Commissioner in a revision petition bearing Case No. 251/2012, upholding the Respondent No.1’s order dated 19th March, 2012, and dismissing the said revision petition.

2. Brief facts necessary for deciding the present petition are as under:

2.1. It is stated that the Petitioner herein was enrolled as a member of the Respondent No.2 Society on 30th August, 1981 vide Membership No. 1023 against a plot of 400 sq. yards category and he deposited a sum of Rs. 48,763/- towards the cost of the plot. It is stated that the Petitioner’s name was approved in a unanimous resolution passed by the then managing committee of the Respondent No.2 Society and a share certificate was issued.

2.2. It is stated that the Petitioner’s name was forwarded by the RCS to Respondent No.3 – Delhi Development Authority (‘DDA’) vide letter dated 3rd May, 1985, for allotment of plot in the Society, however, his name was not included in the draw of lots held by DDA on 15th April, 1986.

2.3. It is stated that subsequently, the Petitioner’s name was withheld and an inquiry was initiated under Section 55 of the Delhi Co-operative Societies Act, 1972 (‘DCS Act’), to re-inquire into the validity of his membership in the controversy that the Petitioner herein was a minor at the time of filing of application for membership.

2.4. It is stated that subsequently, in W.P.(C) No. 5580/1993, this Court vide order dated 30th October, 1995, directed the Respondent No.1, RCS, to appoint a Chairperson to decide the objections raised against any member of Respondent No.2 Society. It is stated that in compliance with the said order, Sh. R.C. Richhariya, Director (Personnel & Grievances), Govt. of India (Retd.) was appointed as Chairperson. It is stated that the said Chairperson on 11th April, 1996 finalised a list of 632 members which included the Petitioner’s name at Sr. No. 569 and the objections against the Petitioner’s membership/eligibility were rejected.

2.5. It is stated that despite the aforesaid, due to non-allotment of plot in Respondent No.2 Society, the Petitioner herein filed W.P.(C) 24099/2005 before this Court seeking directions to Respondents for allotment of a plot. The said petition was disposed of vide order dated 25th November, .2010 with direction to Respondents to expeditiously consider and decide the case of Petitioner for allotment of plot.

2.6. It is stated that in pursuance to the aforesaid, Respondent No.1, RCS, passed an order dated 13th February, 2012, disqualifying the Petitioner from the membership on the grounds that the Petitioner was a minor and financially dependent on his parents on the date he made the application for membership in the Society.

2.7. It is stated that, however, this Court directed Respondent No.1 to reconsider the matter afresh and pass a fresh reasoned order on the issue of membership and allotment.

3. Respondent No.1 in pursuance to the afor

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