IN THE HIGH COURT OF JUDICATURE FOR THE STATE OF TELANGANA
P. NAVEEN RAO, J.
Rupireddy Eshwar Reddy S/o Manohar Reddy – Petitioner
Versus
The Arbitrator/Assistant Registrar, Warangal Urban District, Telangana – Respondent
Writ Petition No. 22306 of 2020
Decided On : 28-09-2021
Constitution of India, 1950 - Article 226 - Code of Civil Procedure - Section 9 - Telangana Co-operative Societies Act, 1964 - Sections 61, 62 and 121 - Membership eligibility - Application for membership - Disqualification for membership - Procedure governing allotment of house plots to members - Member is required to pay costs of plot allotted to him within 90 days from date of allotment - Functioning of Society is governed by Byelaws formulated by Society - Respondent claimed to be members of Society - Whether dispute is touching upon business of society - Whether Arbitrator can go into validity of a sale deed and nullify.
Findings of the Court:
Dispute raised before Arbitrator cannot be termed as one touching business of Society - Arbitrator held that he has jurisdiction to decide dispute and declared sale as null and void - Once a sale deed is executed and registered by society on a parcel of land/house plot, title gets transferred to vendee and society is no more concerned with property - It is no more business of society. Apart from fact that after sale deed was executed title of the property vested in petitioner and the Society cannot unilaterally cancel sale deed, issue of possession, extent of possession claimed by respondent and legality and validity of a sale deed executed by Society in favour of petitioner require adducing evidence, consideration of evidence brought on record and decision thereon after considering rival submissions to dispute - Plot claimed by respondent was not registered in his name by Society - Both reliefs sought by respondent cannot be granted by Arbitrator and these aspects are disputes of civil in nature require adjudication by a civil Court and Arbitrator has no competence to deal with such aspects.
Result: Writ Petition allowed.
ORDER :
1. This Writ Petition is filed praying to grant the following relief:
2. The Ekasila Co-operative Housing Society Limited (Society) is registered under Telangana Co-operative Societies Act 1964. This Society was formed with the avowed objective to buy, sell, hire, let, develop the land and to give loans to the members for construction of new dwelling houses in accordance with the Cooperative principles. The functioning of the Society is governed by the Byelaws formulated by the Society. Bye-law No. 5 deals with membership eligibility; Bye-law No. 6 deals with the application for membership; Bye-law No. 8 deals with disqualification for membership; and Bye-law No. 42 deals with the procedure governing allotment of house plots to the members. For the purpose of this case, sub-clauses 10 [Clause 42: Procedure governing allotment of plots to members: Sub-Clause (10): Every member to whom a plot has been allotted shall construct a residential house in accordance with the plans and designs approved by the society and the Town Planning Departments or such other competent authority within a period of one year from the date of allotment of the plot. If he requires any loan from the society under Low Income Group Housing Scheme he may however construct the house after the loan is sanctioned, but the application for loan shall be made within a period of six months from the date of conveyance of the site. In deserving case where the committee is satisfied, extention of time not exceeding six months may be granted, when site allottee proposes to construct his house with his own funds. If a member fails to construct the house within the period stipulated, the society, may with the permission of the Registrar resume the site and allot it to another member. The amount of the plot paid by the member, from whom the site has been resumed shall be paid back to him on its allotment to other member], 11 [Sub-Clause (11): Every member shall pay the cost of the plot allotted to him within a period of 90 days from the date of allotment and betterment levy as charged by the society shall also be paid by the member within the time prescribed by the society] and 12 [Sub-Clause (12): The society shall execute the sale deed for the plot allotted to a member on payment of all costs and fees in full. Such costs shall include the cost of the land, legal fee, registration charge, betterment charges etc. Before the society executes the sale deed, the member shall also execute an agreement undertaking to pay to the society any additional levy that may be made by the society to meet any such further charges as it may have to incur in connection with the plot allotted to the member] of clause 42 are relevant. Sub-Clause 10 requires member, to whom a plot was allotted to construct a residential house within one year from the date of allotment of the plot. If a member fails to construct a house within the period stipulated, the Society is entitled to resume the site and allot it to another member. According to sub-clause 11, member is required to pay the costs of the plot allotted to him within 90 days from the date of allotment. It also requires payment of betterment levy within the time prescribed by the Society. According to sub-clause 12, on payment of all costs and fees in full, the Society should execute the sale deed. Bye-law No. 43 deals with construction of houses.
3. Petitioner and 3rd respondent cl
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