$~57 & 58 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 16^th April, 2026 Uploaded on: 18th April, 2026 + W.P.(C) 6843/2024 & CM APPL. 28525/2024 PANNA LAL KAPOOR SINCE DECEASED THROUGH LEGAL REPRESENTATIVE PARVEEN KAPOOR .....Petitioner Through: Mr. Rahul Malhotra, Mr. Chirag Goyal, Ms. Manika Mudgal, Advs.

with petitioner in person.

versus REGISTRAR OF COOPERATIVE SOCIETIES & ORS.

.....Respondents Through: Mr. Abhinav Sharma, Adv.

~58 + W.P.(C) 6845/2024 & CM APPL. 28530/2024 PAWAN KAPOOR .....Petitioner Through: Mr. Rahul Malhotra, Mr. Chirag Goyal, Ms. Manika Mudgal, Advs.

with Petitioner in person.

versus REGISTRAR OF COOPERATIVE SOCIETIES & ORS.

.....Respondents Through: Mr. Abhinav Sharma, Adv.

CORAM:

JUSTICE PRATHIBA M. SINGH JUSTICE MADHU JAIN Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. These are two petitions filed under Articles 226 and 227 of Constitution of India, inter alia, challenging the orders dated 18th October, 2011 passed by the Financial Commissioner in Case No. 412/2010-CA and Case No.

412/2010-CA in the Revision petitions filed by the Petitioners under Section 80 of the Delhi Co-operative Societies Act 1972. Challenge is also to the order dated 9^th January, 2024 also passed by the Financial Commissioner in Review petition being Case No. 102/2019 and Case No. 103/2019 filed under Section

115 of the Delhi Co-operative Societies Act, 2003.

3. The brief background of the present petitions is that there were three brothers - Mr. Kewal Kishan Kapoor, Mr. Panna Lal Kapoor and Mr. Manohar Lal Kapoor.

4. Two brothers viz., Mr. Kewal Kishan Kapoor and Mr. Manohar Lal Kapoor were members of the Respondent No. 2-Arawali Cooperative Housing Society Ltd. (hereinafter ‘Society’). The membership was obtained by Mr. Kewal Kishan Kapoor and Mr. Manohar Lal Kapoor in the year 1996. In 2001, Mr. Kewal Kishan Kapoor transferred his membership to his brother namely, Mr. Panna Lal Kapoor i.e., the Petitioner in W.P.(C) 6843/2024. Mr. Manohar Lal Kapoor transferred his membership to his son namely, Mr.

Pawan Kapoor i.e., the Petitioner in W.P.(C) 6845/2024.

5. Mr. Panna Lal Kapoor was allotted flat bearing No. A-4 in the Society and Mr. Pawan Kapoor was allotted flat bearing No. H-101 in the Society. A complaint was filed by Respondent No. 3 – Mr. Ashok Aggarwal that the allotment of the Petitioners is liable to be cancelled on the ground that on the date when the Petitioners’ predecessors, i.e., Mr. Kewal Kapoor and Mr. Manohar Lal Kapoor obtained the membership of the Society, they and their wives were co-owners of property bearing no. BM – 44, Shalimar Bagh, West, Delhi. Therefore, the disqualification under Rule 25 of the Delhi Cooperative Societies Rules, 1973 was attracted. In view thereof, the allotment deserves to be cancelled as per the complainant.

6. Pursuant to the said complaint, Show Cause Notices (hereinafter, ‘SCNs’) were issued to both the Petitioners on 12^th November, 2002 and the replies to the said SCNs were filed by the Petitioners respectively.

7. The Registrar Cooperative Societies (hereinafter, ‘RCS’) passed an order on 18^th April, 2004 and 18th May, 2004 holding that the membership of Mr. Kewal Kapoor and Mr. Manohar Lal Kapoor was liable to be cancelled. The findings of the RCS were that Mr. Kewal Kapoor, Mr. Manohar Lal Kapoor and their wives owned half share in the property, therefore the proviso to Sub-Rule of 25(1)(i)(c) of the Delhi Cooperative Societies Rules, 1973 would not be applicable. The findings of the RCS in the order dated 18th April, 2004 in W.P.(C) 6843/2024 are set out below:

“In the instant case the transferor Mr. Kewal Krishan Kapoor was holding property No. BM 44, Shalimar Bagh (WEST) measuring 207 sq metres in his own name and in the name of his wife Smt Promila Kapoor to the extent of ½ consolidated share (103.5 sq mtrs) at the time of transfer of membership in the name of the respondent Shri Panna Lal Kapoor and got the membership transferred by