1. Challenge to penalty imposed by cooperative housing society for placing flower pots on common pathway. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 )
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2026 Supreme(Online)(Del) 21989
IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, Dinesh Bhatt, JJ
Riviera O.G.H.S. – Appellant
Versus
Registrar of Co-operative Societies – Respondent
W.P.(C) 14425/2026 | CM APPL. 67527/2026
Advocates:
For the Appellants/Petitioners: Anuj Dhir
For the Respondents: Kirtiman Singh, Ritwik Saha, Ujjwal Sinha, Maulik Khurana, Shreeraj Singh
For the Appellants/Petitioners: Anuj Dhir
For the Respondents: Kirtiman Singh, Ritwik Saha, Ujjwal Sinha, Maulik Khurana, Shreeraj Singh
While society discipline is necessary, managing committees should avoid adversarial positions. In unique humanitarian circumstances, the court may exercise discretion to reduce heavy penalties to nominal payments without deciding the legal question of the penalty's validity.
Headnote:(A) Co-operative Societies - Penalties for Encroachment - Imposition of daily fines for placing flower pots in common areas - Where the original member has passed away and the property is transferred, and considering humanitarian grounds such as the presence of a specially abled child, the court may substitute a heavy penalty with a nominal payment without deciding the underlying legal validity of the penalty. (Para 14, 15)
(B) Dispute Resolution - Mediation - Disputes regarding membership transfer and associated contempt proceedings may be referred to mediation to ensure an amicable resolution between the society and its members. (Para 18)
Issues: Whether the society could legally impose a penalty of Rs. 2000 per day for encroachment of common areas by placing flower pots.
Result: Petition disposed of with a direction to pay Rs. 50,000 and referral of related disputes to mediation.
Legal Category Hierarchy
- cooperative law
- property law
- practice and procedure
Table of Contents
2. Society argues discipline necessary; owner contends penalty invalid as land not belonging to society. (Para 9 , 10 )
3. Penalty was imposed on land not owned by society; adversarial positions by society against members not beneficial. (Para 11 , 12 , 13 , 14 )
4. A society cannot penalize members for use of land not belonging to the society. (Para 7 , 14 )
5. Petition disposed of directing payment of reduced amount and mediation for related dispute. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 )
6. Can a cooperative society impose a penalty on a member for use of land not belonging to the society?
No. The society cannot penalize anyone for use of land that does not belong to it, as that would amount to accruing benefit from land it has no title to. (Para 7 , 14 )
7. What is the proper approach for a cooperative society in dealing with members?
The society and its managing committee must work for the benefit of members and avoid adopting adversarial positions, which is not good for the society in the long run. (Para 11 )
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
2. The present petition has been filed by the Petitioner under Article 226 of the Constitution of India, inter alia, assailing the order dated 11th June 2026 passed by the Delhi Cooperative Tribunal (hereinafter, ‘DCT’) passed in Appeal No. 171/2022/DCT and connected appeals.
3. The dispute in the present case arises out of an issue relating to placement of flower pots by the Respondent Nos. 2 to 4 in their flat bearing No. N-1, Riviera Apartments, 45 Mall Road, Delhi.
4. According to the Riviera Apartments Owners Cooperative Housing Society Ltd. (hereinafter, ‘Society’), it had passed a General Body Meeting Resolution dated 13th October, 2019, wherein it had decided that any person making encroachment would be liable to pay a sum of Rs. 2000/- per day which shall be added to the monthly maintenance bill. The relevant portion of the said resolution reads as under:
“Resolved that legal action to be taken against Members/Residents who have placed their goods on society land or are otherwise occupying and trespassing on common paths, rooms, and other common areas belonging to the society. The Managing Committee is authorized to get such areas vacated and in the meantime impose a penal charge of up Riviera Apartment Owners Co-op. Housing Society Ltd. Office No. 9 - North Wing, 1st Floor, Riviera Apartments, 45 - Mall Road, Delhi - 110054 Email: rivieraaptt@gmail.com to Rs.2000/- per day on the concerned member. The amount shall be added to his/her monthly maintenance bill.”
5. According to the Society, it had imposed this penalty against the original owner of this apartment namely, Late Shri Sanjay Chiripal as the owner had encroached upon the common pathway by placing flower pots and plants. According to the Society, the demands raised against the owner were pursuant to Resolution no. 4 as resolved in the GBM held in the Society on 13th October, 2019. Pursuant to the said resolution, notice dated 24th October, 2019 was issued by the Society to the claimant seeking an amount of Rs.2000/- per day in the monthly bills of the claimant, w.e.f., 14.10.2019 onwards.
6. The said owner had challenged the imposition of this penalty and the Registrar of Cooperative Societies (hereinafter, ‘RCS’) had referred the matter under Sections 70 and 71 of the Delhi Co-operative Societies Act, 2003 to a Sole Arbitrator who had, vide Award dated 7th September, 2022 allowed the claim petition of Sh.Chiripal and set aside the notice dated 24th October, 2019 issued by the Society.
7. This award was challenged by the Society before the DCT which had also dismissed the appeal. The relevant portion of the impugned order is set out below:
“52. Since the society has not filed any reply to the application dated 01.08.2022 of the claimant inspite of notice dated 17.08.2022 issued to the society which was received by it on 18.08.2022 and further did not seek any additional time to file reply even after expiry of almost three weeks from the date of receipt of the notice on 18.08.2022, I deem it appropriate to decide the application dated 01.08.2022 of the claimant.
53. The claimant has not raised any new plea in the application dated 01.08.2022 as the claimant has taken one of the Grounds of challenge in his claim petition at para no.: 86 Ground M that "the claimant has not encroached any common land/space of the society."
54. Action was to be taken by the society pursuant to resolution no.: 4 resolved in the GBM dated 13.10.2019 against members/residents who had occupied common areas belonging to the society and/or occupying society's land. Since the society itself admits that the land measuring 4920 sq yards does not belong to the society and it has no right or title over the land and apartments, being part and parcel of building Riviera Apartments, therefore the very basis of the imposition of penalty on the claimant pursuant to resolution no.: 4 passed in the GBM held in t
