SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(All) 275

IN THE HIGH COURT OF ALLAHABAD
JASPREET SINGH, J.
Pradeep Kumar – Petitioner
Versus
The Co-Operative Tribunal U.P., Thru Presiding Officer And Ors. – Respondents
Writ C. No. 1001289 of 2014, Writ C. No. 1001290 of 2014, Writ C. No. 1001368 of 2014, Writ C. No. 1001425 of 2014, Writ C. No. 1001426 of 2014, Writ C. No. 1001455 of 2014, Writ C. No. 1001518 of 2014, Writ C. No. 1001520 of 2014, Writ C. No. 1001529 of 2014, Writ C. No. 1001541 of 2014, Writ C. No. 1001549 of 2014, Writ C. No. 1001551 of 2014, Writ C. No. 1001911 of 2014, Writ C. No. 1001924 of 2014, Writ C. No. 1001926 of 2014, Writ C. No. 1001927 of 2014, Writ C. No. 1002600 of 2014, Writ C. No. 1002601 of 2014, Writ C. No. 1003093 of 2014, Writ C. No. 1003094 of 2014, Writ C. No. 1003095 of 2014, Writ C. No. 1003972 of 2014, Writ C. No. 1003973 of 2014, Writ C. No. 1003974 of 2014.
Decided On : 12-03-2024

Advocates Appeared:
For the Parties : Anupras Singh, Akshay Agarwal, Hemant Kumar Mishra, Arti Ganguly, Rakesh Srivastava, Nirankar Singh, Dev Prakash Mishra, Nishant Shukla, Sanjay Kumar Srivastava, Anurag Kumar Singh, Pushkar Baghel, Ganga Singh, Somesh Tripathi, Ausaf Ahmad Khan, Raghvendra Singh, Anuj Dayal, Amit Swami, Aushaq Ahmad Khan, Chetan Kumar Tiwari, Satish Chandra Shukla, Abhishek Dwivedi, Divyadeep Chaturvedi, Ashutosh Chaurasia, Divyadeep Rastogi.

Headnote:(A) U.P. Co-operative Societies Act, 1965 - Section 70 - Writ petitions under Article 226 of the Constitution - Challenges to order of the Cooperative Tribunal affirming Arbitrator's award - Jurisdiction of the administrator to enroll new members and make allotments amidst default by original allottees - Courts upheld that notice and opportunity were provided to defaulting members, and that their membership was cancelled appropriately - Tribunal's findings of inadequate notice deemed incorrect. (Paras 1, 32, 94, 110)

(B) Natural justice - Requirements for adequate notice and opportunity - Administration of defaulting member's allotment cancellations upheld - Allegations of arbitrariness dismissed based on evidence of repeated notices and return of membership fees. (Paras 95, 100, 106)

Facts of the case:
The original allottees defaulted on payments for flats and their allotments were cancelled and reallocated to subsequent allottees who complied with payment before Tribunal's jurisdiction was challenged. (Paras 4-26, 99)

Findings of Court:
Cancellation of membership of defaulting allottees not arbitrary; due processes followed including multiple notices served detailing defaults leading to the allowed allotments for new members. (Paras 50-52, 94)

Issues: Legitimacy of cancellation of original allottees’ membership and right of authority exercised by the administrator; adequacy of notice in the cancellation process; and nature of membership rights between original and subsequent allottees. (Paras 32, 46)

Ratio Decidendi: Procedure for membership cancellation followed established protocols under relevant statutes; rights of members contingent upon performance of obligations; administrators duly authorized to manage society in absence of established committee. (Paras 17-22, 94)

Result: Tribunal's order set aside; original allottees’ challenges to subsequent allocations denied; writ petitions allowed, costs easy. (Paras 110)

Table of Content
1. batch of petitions filed against tribunal orders. (Para 1 , 2 , 3)
2. background of allotments and cancellations. (Para 4 , 5 , 6 , 9 , 21)
3. details of property and pricing disputes. (Para 13 , 14 , 15 , 16 , 19)
4. arguments by petitioners challenging cancellation. (Para 22 , 24 , 26 , 27)
5. arguments by respondents supporting cancellation. (Para 29 , 30 , 35 , 36 , 39)
6. court analysis on the law regarding membership cancellation. (Para 32 , 34 , 89 , 94)
7. conclusion quashing tribunal orders. (Para 110 , 111)

JUDGMENT :

1. This is a batch of 24 petitions preferred under Article 226 of the Constitution of India assailing the order dated 27.01.2014 passed by the Co-operative Tribunal, Uttar Pradesh whereby the award passed by the Arbitrator in proceedings under Section 70 of the U.P. Co-operative Societies Act, 1965 (hereinafter referred to as the Act of 1965) has been affirmed.

2. The issue involved in the aforesaid 24 petitions is common and is based, by and large, on almost similar facts and the issue of law involved in all petitions is same, hence, all petitions were connected and were heard together and are being decided by this common judgment.

3. To put the controversy in a perspective, the Court shall be considering the facts from the leading petition bearing No.1001289 (M/S) of 2014 alongwith W.P. bearing No. 1003095 (MS) of 2014. However, the submissions of the respective counsel for the parties which are almost the same in all petitions have been noticed and wherever necessary facts of the other petitions is required it will also be noticed at the appropriate place.

4. Primarily, the basic facts which are common in all the petitions are that the private respondent were the initial allottees of the flats in Jivan Bima Rashtriya Sahkari Avas Samiti Ltd, GH-7 Sector-6 Vasundhara Ghaziabad. Since they were defaulters and did not make the necessary payment, hence the Committee of Management of the Society took a decision to cancel the allotment of the original allottees and thereafter the flats were allotted to the present petitioners who are the subsequent allottees and are in possession. They have also got their names duly mutated in the relevant municipal records and have been paying the municipal taxes and utility bills.

5. The private respondents being aggrieved against the allotment made in favour of the petitioners, at different stages filed petitions under Section 70 of the Act, 1965. However in some cases, the private respondents had first instituted civil suits which later came to be dismissed as withdrawn and thereafter they too, filed petitions under Section 70 of the Act, 1965. In most of the cases, the subsequent allottees, initially, were not made as a party before the Arbitrator and award was passed. The impact of which was that the allotment of flats made in favour of the subsequent allottees was cancelled.

6. The subsequent allottees then assailed the said awards before the Co-operative Tribunal and who dismissed the appeals which prompted the subsequent allottees to approach this Court by means of the instant writ petitions.

7. A Co-ordinate Bench of this Court by means of order dated 03.03.2014 while issuing notice to the respondents had granted an interim order in pursuance whereof the possession of the petitioners of the writ petitions has been protected and the same is reproduced as under:-

    "1. Sri J.N. Mathur, learned Senior Advocate, Assisted by Sri Anupras Singh, Advocate, appearing for the petitioner, contends that respondent no.5 did not pay the dues towards Society for constructions of the flat despite repeated reminders sent to the said respondent. Details of default and reminders given by the Society to respondent no.5 have been mentioned in para nos.16 to 18 of the writ petition.

    2. Sri Mathur further submits that that by virtue of order/refund, Annexure-13, vide which share money of the respondent no.5 was returned, even membership of the respondent was cancelled. Membersh

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top