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2025 Supreme(Mad) 3743

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
S.M. SUBRAMANIAM, J.
K. Rajeshkumar - Appellant
Versus
The Registrar of Cooperative Societies (Housing) Tamil Nadu - Respondent
W.A. No.73 of 2025
Decided On : 10-02-2025


Advocates:
Advocate Appeared:
For the Appellant : P.V. Balasubramanian, S. Shujath Hussain
For the Respondents: M. Sureshkumar, M. Rajendiran, V. Karthikeyan, S. Sivasubramani

The court affirmed that the continued occupancy of property without a valid lease is unlawful, emphasizing strict adherence to the cooperative society's statutory regulations.

Headnote:(A) Tamil Nadu Cooperative Societies Act - Sections 90, 153, and 81 - Writ appeal against order of the Deputy Registrar dismissing claim for property occupancy - Validity of initial lease agreement challenged due to procedural irregularities in allotment and approval process - The remaining tenancy after expiration of agreement was deemed unlawful. (Paras 11, 12, and 13)

(B) Lease Agreements - Nature of landlord-tenant relationship - A rental agreement's validity must adhere strictly to statutory provisions; unauthorized occupation post-agreement invalidates any claim to relief. (Paras 12 and 13)

Facts of the case:
The appellant contested the dismissal of his occupancy claim regarding property leased by a cooperative society, where the lease lapsed in 2011 without renewal, resulting in unauthorized occupancy and non-compliance with cooperative procedural norms.

Findings of Court:
Court upheld the lower authority's decision, establishing that the appellant's continued occupancy was unlawful and the initial lease arrangement was fundamentally flawed.

Issues: Court examined the validity of the initial lease, adherence to cooperative society regulations, and the legality of the appellant's occupancy post-expiration.

Ratio Decidendi: The court ruled that the cooperative society's property must be managed according to statutory law, emphasizing that unilateral rental arrangements and unauthorized continued occupancy violate public policy.

Result: Writ appeal dismissed.

Table of Content
1. overview of appellate process regarding lease challenge. (Para 1)
2. property lease agreement and its expiry (Para 2 , 4 , 5)
3. arguments regarding construction and lease (Para 3 , 6 , 7)
4. statements on rental defaults and responses. (Para 8 , 9)
5. analysis of the society's public fund and tenant rights (Para 10 , 11 , 12)
6. call for regulatory compliance and action (Para 13 , 14)
7. conclusion on property removal and restoration (Para 15)

JUDGMENT :

S.M. SUBRAMANIAM, J.

1. The intra-Court appeal on hand has been directed against the writ order dated 18.10.2024 passed in W.P. No. 12416 of 2024.

2. The writ petitioner is the appellant before this Court. The writ petition was instituted challenging the order passed by the Deputy Registrar of Cooperative Societies (Housing) and the order of the Registrar of Cooperative Societies. The third respondent-Madras Secretariat Cooperative Building Society Limited (hereinafter referred to as “the Society”) was assigned the land comprised in R.S.No.3180/1 situated at Purusawalkam, Chennai by the Revenue Department, Government of Tamil Nadu in G.O.Ms.No.2874, Revenue dated 20.07.1956 for the purpose of allotment of house sites to its members. Out of the total extent of land, the Society, by a resolution dated 12.01.2010, allotted the land comprised in Shop No.19, R.S.No.180/1, Block No.55 situated at Secretariat Colony, Kellys, Chennai admeasuring 900 sq.ft., in favour of the appellant. Admittedly, it is a commercial area. Pursuant to the resolution passed by the Society on 12.01.2010, a rental agreement was entered into between the Society and the writ appellant on 01.10.2010. Accordingly, a monthly rent of rupees one thousand was fixed. The property rented out is a vacant land. One of the conditions stipulates that the lessee shall not sublease either whole or any portion of the property to anyone without the prior consent and permission of the Society in writing.

3. The learned Senior Counsel appearing on behalf of the appellant would submit that a resolution was passed by the Society subsequently granting permission to the writ appellant to construct shops at his own cost. Accordingly, the appellant constructed shops and leased out to other third parties.

4. Admittedly, the rental lease agreement was not extended beyond eleven months. The rental agreement expired in the year 2011 itself. No action was taken by the Society for a long time. Both the writ appellant and the sub-lessees continued to be in occupation unauthorisedly without any lease agreement from the Society. The writ appellant collected rents from the sub-lessees who have been in occupation of the shops.

5. The Society initiated action, since the rental agreement expired. That action was questioned by the appellant before the Deputy Registrar of Cooperative Societies (Housing), who in turn conducted an enquiry by affording opportunity to the parties and passed final orders in proceeding dated 07.10.2022 rejecting the claim of the appellant. Challenging the said order, the appellant filed a revision under Section 153 of the Tamil Nadu Cooperative Societies Act, which was also dismissed by the Registrar of Cooperative Societies vide proceedings dated 06.03.2024. Thus the writ petition came to be instituted unsuccessfully.

6. The learned Senior Counsel appearing on behalf of the appellant would mainly contend that the property was a vacant land and allotted to the appellant. The appellant constructed a building and his son was running a clinic initially. Subsequently, the clinic was converted as commercial shops and leased out to third parties from the year 2020 onwards.

7. It is contended that the Society permitted the construction of building and the appellant invested money for construction of commercial shops. Therefore, they cannot turn around and evict the appellant.

8. The learned Additional Advocate General Mr.M.Sureshkumar appearing on behalf of the respondents 1 to 3 would oppose by stating that the initial

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