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2021 Supreme(UK) 676

IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Ravindra Maithani, J.
Committee Of Management Doon Valley Officers Co-operative Housing Society Ltd. - Appellant
Versus
State Of Uttarakhand - Respondent
Writ Petition (M/S) No. 1100 of 2015, 1101 of 2015, 1102 of 2015
Decided On : 05-05-2021

Advocates Appeared:
Siddhartha Singh, Advocate, Pooran Singh Bisht, Advocate, A.S. Rawat, Advocate, Yogesh Pacholia, Advocate

Headnote:(A) Uttar Pradesh Cooperative Societies Act, 1965 - Section 98(2)(a) - Quashing of orders by appellate authority - Impugned orders challenged on grounds of legality in consideration of membership to a society, resumption of plots, and validity of powers exercised by administrators - Appellate authority upheld prior orders by Registrar that reinstated memberships and allowed new constructions contrary to the by-laws of the Society - Court analyzed procedural adherence, jurisdictional limits of administrative actions and paramountcy of general body resolutions. (Paras 53, 59, 116, 118)

(B) Jurisdictional Error - Issue of dual capacity held to not invalidate the authority’s decisions since the representative action was deemed independent from the order under review - Appeals succeeded; prior orders set aside based on established procedural non-compliance and legislative provisions. (Paras 108, 118)

Facts of the case:
The writ petitions stemmed from a contention that the membership of respondent no. 4 was improperly conferred against prior resolutions and court orders prohibiting new enrollees, along with overruling plot resumption rights. (Paras 2, 41, 78)

Findings of Court:
The Court determined that previous resolutions forbidding membership induction still held legal weight and were violated; the inductee's reliance on a power of attorney was ineffective postdeath of the principal. (Paras 78, 102)

Issues: Key issues included the legality of membership induction based on precedents set by the General Body and adherence to statutory orders prohibiting new member enrollments. (Paras 41, 85)

Ratio Decidendi: The Court reinforced that By-Laws constitute binding agreements subject to cooperative governance norms and determined that procedural errors by stakeholders could invalidate administrative actions if not compliant with established statutes. (Paras 116, 117)

Result: Writ petitions allowed; orders of the appellate authority quashed, and prior Registrar orders annulled with implications on the society's membership and plot management.

Table of Content
1. background of ongoing litigation and membership issues (Para 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. petitioner's legal arguments regarding the validity of the transfer (Para 11 , 13 , 14 , 16 , 17 , 18)
3. clarification of legal principles regarding cooperative society law (Para 12 , 15 , 19 , 20)
4. judicial review principles applicable to cooperative societies (Para 25 , 26 , 27 , 28)
5. court's analysis and interpretation of section 128 of cooperative act (Para 41 , 43 , 44)
6. the validity and restrictions of transfer and membership in cooperative societies (Para 92 , 99 , 102 , 107)
7. final order quashing previous decisions and setting aside the orders (Para 117 , 118 , 119 , 120)

JUDGMENT

Ravindra Maithani, J. - Since common question of law and facts are involved in all these three writ petitions, they are being decided by this common judgment.

    FACTS

WRIT PETITION (M/S) NO. 1100 OF 2015

2. This petition is preferred for quashing the order dated 18.04.2015 passed under Section 98 (2) (a) of the Uttar Pradesh Cooperative Societies Act, 1965 (for short, "the Act"), passed in Appeal No. 07 of 2013, Doon Valley Officers' Cooperative Housing Society, Dehradun Vs. Registrar, Cooperative Societies and others (for short, "the appeal"). By the impugned order the appellate authority (respondent no. 3 herein) upheld the order dated 28.11.2002 passed by the Registrar, Cooperative Societies (conveyed vide Letter No. 693/Vidhi//Ni.Sa.Sa/2002 dated 28th November, 2002). The Registrar, by his order dated 28.11.2002, had rejected the objections of Doon Valley Officers' Cooperative Housing Society Limited, Dehradun (for short, "the Society") against extension of time for raising construction by the respondent no. 4 Ram Gopal.

3. The facts necessary for disposal of the instant petition have a long history. It is the third round of litigation. Shortly stated, the facts are as under:

    (i) The Society is constituted under the Act with the objectives of providing land and other materials for construction of houses to its members, etc. A plot bearing No. 117, Phase-I of the Society (hereinafter referred to as "the plot") was allocated to R.S. Chug, who transferred it to D.P. Nangia on 28.09.1984. D.P. Nangia did not construct the house on time and sought extension, but he did not construct his house for a decade. He was issued various notices by the Society. D.P. Nangia executed a power of attorney (POA) in favour of Major (retd.) Naresh Gupta on 07.01.1991. On the strength of the POA, Major (retd.) Naresh Gupta executed a transfer lease deed in favour of the respondent no. 4 Ram Gopal on 23.07.2001. For this transfer, permission of the Society was never sought. In fact Sri D.P. Nangia had died on 13.05.1998, almost 3 years prior to execution of transfer of lease deed.

    (ii) On 03.11.1993, the Committee of Management of the Society (for short, "the petitioner") was not functional and an Administrator was appointed. The Administrator, on 03.11.1993, admitted the respondent no. 4 Ram Gopal as a member of the Society. Before that, on 18.07.1993 the General Body of the society had resoled that no new member would be enrolled and plots shall not be allotted till the further decision of the General Body.

    (iii) The petitioner on 24.08.2002 by a resolution on point no. 4 cancelled the membership of the respondent no. 4. This resolution of the committee of management was quashed under Section 128 of the Act by the Registrar on 28.11.2002 (conveyed by Letter No. 691/Vidhi/Ni.Sa.Sa. dated 28th November, 2002).

    (iv) Simultaneously, on 25.09.2002, the petitioner by a resolution on point no. 3 considering that inspite of numerous notices issued by the Society and in violation of Bye-law 50, the respondent no. 4 Ram Gopal had not undertaken construction work of the residential house, resumed the plot.

    (v) It appears that in the meanwhile, respondent no. 4 Ram Gopal sought extension of time for raising construction on the plot from the Registrar, which was extended t

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