A cooperative society is a distinct legal entity, and its lease cannot be canceled based on the past actions of former office bearers without due process and proper verification of current members.

J U D G M E N T

1. The petitioner is invoking the extra ordinary jurisdiction of this Court under Article 226 of the Constitution of India, 1950, seeking the issuance of an appropriate writ or directions for the quashing of the impugned order dated 30.09.2020 passed by the respondent No. 1/DDA1, thereby cancelling the lease deed of the petitioner society, and further seeking direction against the respondent No. 2/Registrar of Societies to certify the list of existing genuine members of the Signature Not Verified Digitally Signed W.P. (C) 10033/2020 Page 1 of 41 petitioner society and initiate the process of allotment of the residential flats to those found eligible.

2. The petitioner society is a Co-operative Group Housing Society duly registered with the office of the Registrar Cooperative Societies vide registration No. 1112(G/H) on 22.12.1983. The DDA being the land-owning agency in the National Capital Territory of Delhi, had originally allotted the Plot No. A1, Sector 22, Dwarka, New Delhi- 1100752, to the petitioner society in the year 2000 but the Lease Deed was executed on 12.02.2015 in its favour, as would be explained hereinafter.

3. The petitioner society has claimed the following reliefs in the instant writ petition:

“a) Issue a Writ in the nature of Certiorari or any other appropriate Writ quashing or setting aside the Order dated 30.09.2020 passed by the Respondent No. 1 cancelling the Lease Deed dated

12.02.2015 b) Issue a Writ in the nature of Mandamus or any other appropriate Writ directing the Respondent No. 2 to verify the existing List of genuine members of the Petitioner Society, within a time bound manner, so that allotment of flats can accordingly done in favour of the respective bonafide members of the Society;”

BRIEF FACTS:

4. There have been several twists and turns in the long history of the petitioner society. It is the case of the petitioner society that on 25.04.1990, the office of respondent No. 2 ordered the petitioner society to be wound up under Section 63 of the Delhi Cooperative Societies Act, 19723, against which the order was assailed and set

1 Delhi Development Authority

2 Plot in question

3 DCS Act Signature Not Verified Digitally Signed W.P. (C) 10033/2020 Page 2 of 41 aside by the Hon’ble Lieutenant Governor4 on 24.08.1990, thereby remanding the matter back to the respondent No. 2 for re-examination, and eventually the winding up order passed by the respondent No. 2 was withdrawn vide order dated 12.06.1997. In the interregnum, the then Secretary Late Sh. R.L Arora in the Managing Committee on 31.03.1997 applied to respondent No. 2 for an increase in the sanctioned membership strength of the petitioner society from 150 members to 300 members, simultaneously supplying a list of 300 members, which was verified by the office of the respondent No. 2 on 27.08.1997 and the Freeze List of 300 members was forwarded to the DDA for allotment of land in the petitioner society. Pursuant to the allotment proposed on 03.06.1998, the petitioner society on 17.07.1998 deposited 35% of the cost, i.e., Rs. 2,75,41,500/- for the land in question, and the land in question was allotted to the petitioner society on 03.02.2000 in a draw of lots.

5. It is the case of the petitioner society that during the years 1999- 2000, Late Sh. R. L. Arora, the then Secretary of the petitioner society, allegedly misappropriated society funds amounting to Rs. 1. 17 Crores, in connivance with the then Treasurer of the society, Smt. Promila Sardar, which amount had been contributed by the members of the petitioner society for the purpose of allotment of land for the society. It is stated that the abovesaid office bearers allegedly utilized the funds to purchase land in Ghaziabad, U.P., on behalf of Lok Hitkari Awas Samiti Ltd., Ghaziabad, U.P., where Late Sh. R. L. 4 LG Hon’ble Signature Not Verified Digitally Signed W.P. (C) 10033/2020 Page 3 of 41 Arora also held the position of Secretary in addition to his role as Secretary in the pe