Membership in a cooperative society cannot be deemed validly terminated upon a disputed resignation if the initial membership fee has not been refunded, as the retention of the financial contribution by the society maintains the member's status.

JUDGMENT :

Prathiba M. Singh, J.

1. This hearing has been done through hybrid mode.

2. The present writ petition has been filed by the Petitioner, inter alia, challenging order dated 25th September, 2023 passed by Respondent No.1 - Registrar of Cooperative Society (hereinafter ‘RCS’). The Petitioner also seeks directions to the Respondents to comply with the award dated 27th October, 2014 passed by the ld. Arbitrator in proceedings initiated under the Delhi Co-operative Societies Act, 1972.

3. The background of this case is that the Petitioner had become the bona fide member of the Bhagwati Cooperative Group Society Ltd. (hereinafter ‘Society’) upon payment of membership fee along with the sum of Rs. 3,25,000/- on 21st April, 2001 and was granted Membership No. 504 (Category-A1). He had deposited a sum of Rs.5,30,000/- on 19th June, 2001. However, when an election was declared in the Society on 7th August, 2004, the name of the Petitioner was not reflected in the eligible members which led to the invocation of arbitration proceedings under the Delhi Co-operative Societies Act, 1972 being Arbitration Case No. 2663/DR/ARB/2004-05.

4. An award was passed by the ld. Sole Arbitrator in favour of the Petitioner on 31st July, 2007 which was sought to be executed by the Petitioner. However, in an appeal preferred by the Society, this award was set aside by the Delhi Cooperative Tribunal on 30th April, 2014. The matter was again referred to arbitration with another Sole Arbitrator and an award was passed on 27th October, 2014. The operative portion of the said award is set out below:

“Thus here it is my opinion that RCS Delhi office should obtained the report of Government laboratory related to the handwriting expert within month of submission or issue of the opinion of under signed and for that purpose the society days of the issue of this opinion/report.

If the report obtained by the RCS Delhi office is found in favour of the society, then society is hereby instructed/directed to refund the whole amount deposited by one claimant under the norms of the Bank loan calculations which is to be made on annual basis as per rate of interest prevails time to time in the matter. But this process should be completed within three months i.e. up to 31st Jan, 2015. If it is not completed then it is to be presumed that society is interested in retaining the membership of the claimant.

5. As can be seen from the above award, the signature of the Petitioner was to be compared on the resignation letter and the RCS had to proceed in terms of the award. The Petitioner sought execution of this award, however, to no avail, which led to the filing of a writ petition being W.P.(C) 14426/2024 titled Sanjeev Kumar Kansal v. The Registrar Co-operative Societies Government NCT of Delhi & Anr. In the said writ petition, a Coordinate Bench of this Court on 15th October, 2024 has directed as under:

“5. Consequently, this Court disposes of the present writ petition along with the application with a direction to the Recovery Officer, Co-operative Societies to decide the petitioner's application under Section 105(b) of the Delhi Co-operative Societies Act, 2003 read with Section 61 of the Delhi Co-operative Societies Act, 1972, in accordance with law within twelve weeks. The rights and contentions of all the parties are left open.”

6. A perusal of the above directions makes it abundantly clear that the Recovery Officer was to decide the execution application of the Petitioner within twelve weeks. Repeated letters were also written but no action was taken. Thereafter, the Petitioner came