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2006 Supreme(Online)(SC) 51

SUPREME COURT
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A. Jitendernath – Appellant
Versus
Jubilee Hills Cooperative House Building Society Limited, Hyderabad – Respondent
Civil Revision Petition No. 283 of 2000 | Civil Miscellaneous Petition No. 7763 of 2002



Advocates:
For the Appellants/Petitioners: Mr. S. Muralidhar
For the Respondents: Mr. G. Ramakrishna Prasad, Mr. H. S. Gururaja, Mr. T. L. V. Iyer, Mr. M. N. Rao, Mr. L. Nageswara Rao

Provisional allotments in cooperative societies are subject to compliance with obligations, and failure to notify relevant parties renders decisions unenforceable.

Headnote:(A) Andhra Pradesh Cooperative Societies Act, 1964 - Bye laws of the Society - Validity of allotment of plots and membership rights - Court held that provisional allotment to deceased member was deemed cancelled due to non-payment, and subsequent allotment made to another member was valid. (Paras 1-60)

(B) Principle of Res Judicata - Court ruled the award passed in favor of the appellant was unenforceable as it was made without notifying the necessary parties, rendering it a nullity. (Paras 50, 51)

(C) Membership Rights - A member's rights in a society depend on the compliance with membership terms and conditions, and no indefeasible right arises without complete fulfillment of obligations. (Paras 33, 34)

Facts of the case:
The appellant, upon his mother’s death, sought allotment of a plot after non-payment by his mother led to its provisional cancellation. A plot was subsequently allotted to another member who paid the required fees. The appellant queried the refusal of allotment based on his and his mother's membership.

Findings of Court:
The court ruled that the Society's actions were valid in allotting the disputed plot to the new member due to the original allotment's cancellation, leading to the decision that the appellant's award was unenforceable.

Issues: The key issue was whether the appellant had a valid claim to the plot based on prior allotments and whether the actions of the Society were appropriate after the death of the original member.

Ratio Decidendi: The court found that the provisional allotment's cancellation due to non-payment meant no valid claim arose for the appellant; the award made without necessary parties present was invalid, and the member's rights were contingent on fulfilling obligations within the Society's rules.

Result: Appeals dismissed; however, the Society directed to compensate the appellant and provide due process for future allotments.

1 These appeals are directed against judgments and orders dated 13/11/2001 and 22/04/2002 passed by the High Court of Andhra Pradesh in Civil Revision Petition No. 283 of 2000 and Civil Miscellaneous Petition No. 7763 of 2002 respectively.

2 Jubilee Hills Cooperative House Building Society Limited, Hyderabad is a Society registered under the Andhra Pradesh Cooperative Societies Act, 1964 . It had enrolled a large number of members. The father of the one Shri Anne Srinivas and the mother of the appellant, Mrs. A. Annapurna Devi, herein were members of the said Society.

3 From a perusal of the bye laws framed by the said Society, it appears that it intended to allot one plot to the family of the member concerned. The bye laws contain provisions for nomination.

4 Bye laws 19 to 22 which are relevant for our purpose read as under:
"19. Every member may by declaration attested by two witnesses nominate a person or persons to whom his share or interest, shall be paid or transferred on his death. A nominee may be changed by filing a fresh declaration with the Secretary. In the absence of any nomination the amount of his share or interest shall be paid or transferred to such person as may appear to the Managing Committee to be legally entitled. In case of any doubt the Managing Committee shall call for a succession certificate and act in accordance therewith. All amounts payable to a minor shall be paid to him through his guardian.
20. The Society shall keep a book wherein the names of all persons so nominated and all revocation or variation (if any) of such nomination shall be recorded within fifteen days.
21. All shares transferred by virtue of a nomination or by him or by legal transfer shall be transferred to the nominee or heir on his becoming a member. He shall not, however, be entitled to withdraw any such share on account of such transfer.
22. The nominee of a deceased member shall be made a member provided he fulfils the qualifications of membership."




5 The mother of the appellant herein expired on 15/08/1977. It was not notified to the Society. A plot bearing No. 39 in Phase III in Jubilee Hills admeasuring 600 sq. yards was allotted in her favour. On or about 05/11/1981, a notice was circulated to the members of the Society that allotment of plots would be done by way of draw of lots. A copy of the said notice was also sent to Mrs. A Annapurna Devi (since deceased). Plot No. 39 was allotted in her favour on a provisional basis by the Society on 20th June, 1982. She was called upon to pay a sum of Rs. 4,003.90 within one month from the date of receipt thereof. However, as no payment was made within the stipulated period, on or about 30/09/1982, a letter was issued granting final extension of time upto 30/11/1982 to make payment. It was categorically stated therein that the provisional allotment would be cancelled and no representation in that behalf shall be entertained if no payment is made on or before 30/11/1982 for confirmation of provisional allotment of the said plot. The said amount admittedly was not paid evidently because in the meantime the mother of the appellant had expired.

6 Shri Anne Srinivas was admitted as a member of the Society on 06/08/1983 in place of his father who was a member of the Society. Indisputably, on 16/09/1983, Plot No. 39 was allotted in his favour.

7 The appellant on behalf of his mother wrote a letter on 16/03/1985 to the first respondent herein for allotment of site in respect of membership No. 1646 stating:
"Sub: Allotment of site for Membership 1646.
I request you to kindly allot me a site in lieu of my Plot No. 39 in phase 3 which has been given to someone else.
I had to pay to the Society around Rs. 4,000/-, I am ready to pay the above amount immediately and start construction of the house if you would kindly allot me a suitable plot nearby.
The plot 39 in phase 3 which was allotted to me was given to some one else. I was not in Hyderabad for more than 2 1/2 years and no correspondence from you w


















































































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