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2012 Supreme(All) 1611

[2012(8) ADJ 691]
ALLAHABAD HIGH COURT
BEFORE : SUDHIR AGARWAL, J.
YADURAJ SINGH ....Petitioner
Versus
DISTRICT ASSISTANT REGISTRAR, COOPERATIVE SOCIETIES AND OTHERS ....Respondents
(Civil Misc. Writ Petition Nos. 6036, 6037, 3684, 6038, 6039 and 6040 of 2009, decided on 3rd July, 2012)

Advocates:
Counsel :
M.P. Gupta, R.K. Gupta, Ashok Kumar Lal, H.R. Mishra and Abhishek Mishra for the Petitioner; Rakes Kumar, S.P. Sharma, S.P.S. Verma and C.S.C. for the Respondents.

Headnote:U.P. Co-operative Societies Act, 1965—Sections 70 and 128—U.P. Co-operative Societies Rules, 1968—Rule 225—Housing Co-operative Society—Sale-deed—Power of Arbitrator to declare impugned sale-deed null and void—Scope—Respondent No. 2, sole Arbitrator declared the impugned sale-deed as executed by respondent No. 3 in favour of petitioner, null and void—Whether there is a violation of conditions of sale-deed or bye-laws justifying nullification of sale-deed is a question relating to business of the Co-operative Society and whether it was referable to arbitration under Section 70 ?—Words “business of society” is unrestricted and wider enough to cover a dispute between the members of a Co-operative Society about a subject-matter which relates to business of society—A sale-deed also can be cancelled by the Arbitrator and it is not necessary to approach the Civil Court for said purpose—When a special adjudicatory forum is provided in the statute for settlement of dispute, thus procedure prescribed in common law is barred—Jurisdiction of arbitrator to arbitrate in instant dispute upheld—However, the Arbitrator failed to consider that in absence of discharge of its own obligation of paving the way clear to the members of society with regard to construction of house—A society cannot blame a member of society for not raising construction of house when itself has committed default in getting statutory clearance as applicable with regard to construction of building—Impugned orders set aside—Matter remitted back to respondent No. 2. [Paras 33 to 54]

       Result; Petitions Allowed.

       

JUDGMENT

Hon’ble Sudhir Agarwal, J.—Heard Sri H.R. Mishra, Senior Advocate for the petitioner; Sri Rakesh Kumar for respondent Nos. 1 and 2 and Sri S.P. Sharma for respondent No. 3. As requested and agreed by learned counsel for the parties, the Court proceeds to decide the matter under the Rules of the Court at this stage.

2. The first two writ petitions were heard on 1.9.2011 and judgment was reserved. Before the judgment could be prepared and delivered, the other matters namely Civil Misc. Writ Petition Nos. 3684 of 2009, 6038 of 2009, 6039 of 2009 and 6040 of 2009 came up for hearing on 21.3.2012 and since they also involved same questions of facts and law as in the earlier two writ petitions, learned counsel for parties not only adopted the arguments already advanced in earlier two writ petitions but made some further arguments and, therefore, judgment was reserved therein also so that all these matters may be decided by a common judgment and hence I proceed accordingly.

3. The factual and legal aspects in all the matters are similar and common and, therefore with the consent of learned counsel for parties, pleadings and facts of writ petition No. 6036 of 2009 are being discussed in this judgment treating it as leading case and same would apply to all other writ petitions.

4. The writ petitions are directed against the order dated 10.1.2007 passed by Additional District Co-operative Officer, Headquarters Agra as Sole Arbitrator in purported exercise of powers under Section 70 of U.P. Co-operative Societies Act, 1965 (hereinafter referred as the “Act, 1965”), declaring sale-deed dated 8.6.1989, executed by respondent No. 3 in favour of the petitioner(s), null and void. He has further directed respondent No. 3 i.e., Sky Enclave Gramin Sahkari Awas Samiti Ltd., 60, Jaipur House Market, Agra (hereinafter referred to as “the Society”) to refund price of land in question to the petitioner(s), and thereafter to allot land in question in accordance with U.P. Cooperative Societies Rules, 1968 (for short “Rules, 1968”) to any other Member of the Society.

5. The aforesaid order has been affirmed in appeal vide order dated 15.10.2008 of District Assistant Registrar, Co-operative Societies, U.P. Agra. Both these orders are impugned in this writ petition.

6. The basic contention of learned Senior Counsel for the petitioner is that impugned orders are without jurisdiction. Respondent No. 2 had no jurisdiction to declare a sale-deed, null and void since such an issue could have been raised in a Court of law only by filing a civil suit. So far as the appellate order is concerned, it is submitted that the appellate authority has exceeded its jurisdiction in dismissing appeal inasmuch as, when the sole Arbitrator himself lacked jurisdiction, the Appellate Authority also could have no jurisdiction to entertain the appeal. Even otherwise, appeal involving the disputed amount exceeding Rs. 10,000/- is maintainable before U.P. Co-operative Tribunal, Lucknow, as per notification dated 4.3.1979 and hence appeal was not maintainable before the District Assistant Register (Co-operative Societies).

7. The facts in brief, giving rise to the present dispute are as under.

8. The Society is a co-operative society registered under the Act 1965. It was constituted with the object of undertaking housing projects. In other words, it is a housing co-operative society. The society proposed a housing colony at Khasra No. 171, village Pathauli, Plot No. 1. After purchasing the said land, the Society made a plan of a housing colony on the said land. It sold a plot measuring 295.60 Sq. yards on a consideration of Rs. 7414.50 to the petitioner Yaduraj Singh vide sale-deed dated 8.6.1989. At that time, it is alleged that proposed housing colony fell in rural area and beyond territorial jurisdiction of Agra Development Authority (hereinafter referred to as “A.D.A.”) and it came within the territorial authority of A.D.A. in year 2002.

9. The Society filed an applicati









































































































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