IN THE HIGH COURT OF JHARKHAND AT RANCHI
HON’BLE MR. JUSTICE ANIL KUMAR CHOUDHARY, J.
Anandi Singh, S/o. Late B. Singh & Ors. - Petitioners
Versus
The State of Jharkhand through the Secretary, Department of Agriculture, Animal Husbandry and Cooperative Department & Ors. - Respondents
W.P.(C) No. 4891 of 2017
Decided On : 16-04-2024
[COOPERATIVE SOCIETY] - [DISPUTE OVER CONSTRUCTION] - [Article 226 of the Constitution of India] - [The court discussed the powers of the General Body of a Cooperative Society as per the Bihar and Orissa Act, 1935, and the implications of resolutions passed by the General Body. It emphasized that decisions made by the majority bind all members, and the court found no illegality in the construction of multi-storied buildings as per the society's resolution. The court also highlighted the importance of adhering to the society's bye-laws and the lack of challenge to the resolution by the petitioners.]
Fact of the Case:
The petitioners filed a writ petition to quash orders from the District Co-operative Officer and the Registrar of Co-operative Societies regarding the construction of a multi-storied building on residential plots allocated to a cooperative society. They argued that the construction violated the society's bye-laws and was a form of commercialization.
Finding of the Court:
The court found that the resolution allowing the construction was valid and had not been challenged by the petitioners. It noted that the construction had already been completed and the flats were occupied, rendering the petition moot. The court upheld the decisions of the District Co-operative Officer and the Registrar.
Issues: Whether the construction of a multi-storied building on residential plots violated the cooperative society's bye-laws and whether the petitioners had the standing to challenge the decisions made by the society's General Body.
Ratio Decidendi: The court held that resolutions passed by the General Body of a Cooperative Society bind all members unless overturned by a competent authority. The court emphasized that the petitioners, being members of the society, were bound by the majority decision and that the construction was in accordance with the society's bye-laws.
Final Decision: The writ petition was dismissed as it lacked merit, and the court upheld the orders of the District Co-operative Officer and the Registrar of Co-operative Societies.
JUDGMENT :
Anil Kumar Choudhary, J.
Heard the parties.
2. This Writ Petition has been filed under Article 226 of the Constitution of India with a prayer to quash the order dated 06.07.2017 passed by the Registrar, Co-operative Societies, Jharkhand, Ranchi in Appeal Case No.18 of 2015 (copy of which has been kept at Annexure-11 of this Writ Petition) whereby and where under the appeal preferred by the petitioners against the order dated 20.07.2015 passed by the District Co-operative Officer, Bokaro has been dismissed and the said order dated 20.07.2015, has been upheld. Prayer has also been made in this Writ Petition for quashing the said order dated 20.07.2015 passed by the District Co-operative Officer, Bokaro in Case No.01 of 2014 (copy of which has been kept at Annexure-8 of this Writ Petition) whereby and where under the District Co-operative Officer, Bokaro, dismissed the case of the petitioners for stoppage of the construction of Commercial and Multi-storied Building Complex on the allotted residential plots of the Cooperative Society and consequential reliefs.
3. The case of the petitioners in brief is that the respondent No.5 is a Society Registered under Bihar and Orissa Act, 1935. The members of the society rose to 1050 in the year 2013. A total of 870 numbers of plots have been allotted to its Members. The Secretary of the respondent No.5- Cooperative Society in connivance with some vested interest by committing fraud has got a Resolution of the Annual General Meeting passed on 07.04.2013 against the basic purpose of the society for which the respondent No.5- Cooperative Society was formed. By such Resolution No.9, it has been decided that the plots may be used for the purpose of construction of multi-storied residential complex. The petitioners further contended that construction of multi-storied complex will amount to commercialization at the instance of defaulting members of the society who though have been allotted residential accommodations, but are not residing there. Plot Nos.328 and 329 which have been allotted to the private respondents but they never utilized it and as per the Bye-laws when lying vacant, and thus were fit to be cancelled, for further allotment to needy and desirous members of the society, have been handed over the respondent- builder for construction of multi-storied building. The development agreement is against the aims and objects of the respondent No.5- Cooperative Society and its Bye-laws and is designed to destroy the whole concept of Cooperative Society. The petitioners approached the District Co-operative Officer, Bokaro for restraining the respondents from making the construction and the said petition was registered as Case No.01/2014. Despite the status quo order passed by the District Co-operative Officer, Bokaro; as the construction continued, the petitioners filed W.P. (C) No.5052 of 2014 in this Court. The Writ Petition was withdrawn as the District Administration filed a counter-affidavit stating that they have taken all steps of for ensuring compliance of the order dated 12.02.2014 in Case No.01 of 2014 passed by the District Co-operative Officer, Bokaro. The District Co-operative Officer, Bokaro vide order dated 20.07.2015 dismissed the Case No.01 of 2014 without appreciating the fact that commercialization and conversion of plot meant for residential purpose is opposed to the Bye-laws of the society. The petitioners preferred Appeal Case No.18 of 2015 before the Registrar, Cooperative Societies, Jharkhand, Ranchi but the Registrar, Cooperative Societies, Jharkhand, Ranchi in most mechanical and casual manner without appreciating and addressing the issues raised by the petitioners, has dismissed the appeal preferred by the petitioners vide order dated 07.07.2017 without considering the commercialization elements which is being sought to be infused on the piece of plot meant for residential purpose nor in violation of the same.
4. Learned counsel for the petitioners relies upon
State of Maharashtra & Others vs. Karvanagar Sahakari Griha Rachana Sanstha Maryadit & Others
Dhaneshbhai Bhikhubhai Patel & 1 vs. Shantiniketan Cooperative Housing Society Ltd. & 1
Decisions made by the General Body of a Cooperative Society are binding on all members, and members cannot independently challenge such decisions unless they are overturned by a competent authority.
The main legal principle established is that the decisions of the General Body of a Co-operative Society, approved in accordance with the Act and Rules, should be respected and implemented, emphasizi....
A cooperative society's resolutions regarding redevelopment require majority consent, which prevails over minority objections; judicial review is limited to errors of law or process.
The execution of an arbitral award cannot be dismissed unless full compliance with its terms is proven; ongoing violations mandate enforcement.
The main legal point established in the judgment is that objections raised by a minority of members after an overwhelming majority had approved the appointment of a developer for redevelopment were i....
A cooperative society's general body resolutions are presumed valid and require specific challenges to be contested; absent such challenges, claims of enforceable rights based on pre-incorporation do....
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