A. Jitendernath vs Jubilee Hills Coop. House Bld. Soc. & Anr

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.

The mother of the Appellant herein expired on 15.8.1977. 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 5.11.1981, 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 30.9.1982, 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.

Shri Anne Srinivas was admitted as a member of the Society on 6.8.1983 in place of his father who was a member of the Society. Indisputably, on 16.9.1983, plot No. 39 was allotted in his favour.

On 18.3.1986, he made a representation for allotment of a new plot stating :

Respondent No. 1 Society admitted the Appellant as a member on 28.4.1986. Despite the fact that the membership had been transferred to the Appellant, a sale deed was executed by the Society in favour of Srinivas on 7.2.1987. The said deed was also presented for registration.

Despite having been admitted as a member of the Society, no plot admittedly was allotted to the Appellant. The Appellant made a representation for allotment of plot on 15.11.1988. The Society in terms of its letter dated 3.1.1990 declined to make any allotment in his favour. Questioning the said action on the part of the Society, the Appellant filed an application on 4.3.1990 before the Assistant Registrar of the Cooperative Society which was numbered as ARC 21 of 1990 praying for:

An appeal marked as CTA No. 6 of 1991 was preferred before the Third Assistant Judge, City Civil Court, Hyderabad by the First Respondent against the award. However, as the transfer of membership was not intimated to Srinivas, he filed a suit in the court of VII Assistant Judge, City Civil Court, Hyderabad which was marked as OS No. 3702 of 1992 wherein the Appellant herein was not impleaded as a party. During pendency of the said suit, Srinivas transferred his right, title and interest in favour of the Second Respondent herein by a deed of sale dated 25.7.1992. The Second Respondent thereafter filed an interlocutory application in the said CTA No. 6 of 1991 for being impleaded as a party thereat which was numbered as I.A. No. 651 of 1993. Both the proceedings were transferred to the District Cooperative Tribunal, Hyderabad, C.T.A. No. 6 of 1991 was renumbered as C.T.A. No. 130 of 1996.

On 30.09.1996, an appeal was preferred by the First Respondent against the award dated 22.4.1991 before the Cooperative Tribunal. The Second Respondent also filed an application for impleading himself as a party therein. By an order dated 30.09.1996, the said appeal as also the said I.A. were dismissed in default.

The said revision petition was dismissed with a liberty reserved to the Second Respondent to come on record as an additional respondent if the said appeal was restored to its original file. The Appellant also filed an execution petition for executing the award dated 22.4.1991 before the Second Assistant Judge, City Civil Court, Hyderabad. An application was filed therein by the Second Respondent contending that the said execution petition was not maintainable and by an order dated 27.4.1998, the same was allowed by the executing court, holding:

The Appellant preferred an appeal against the said order dated 27.4.1998 in the Court of Additional Chief Judge, City Civil Court, Hyderabad which was numbered as CMA No. 163 of 1998 and by a judgment and order dated 22.12.1999, the said appeal was allowed opining that no valid title passed to the said Srinivas prior to 22.4.1991 as the sale deed in his favour was registered after passing of the award. It was observed:

In terms of the aforementioned provision, therefore, if a deed of sale is executed although not registered, the right, title and interest in respect thereof shall pass with retrospective effect, i.e., from the date of execution thereof.

The High Court's judgment, therefore, is unassailable albeit for additional reasons stated hereinbefore.

We may at this stage notice that Mr. Muralidhar categorically stated that his client does not press for allotment of plot No. 39 and he would be satisfied if some other plot is allotted in its favour. This brings us to consideration to the question of allotment of plot No. 400.

We, therefore, are of the opinion that interest of justice would be sub- served if the First Respondent is directed to consider the question of allotment amongst its members upon strict compliance of the extant rules including its bye-laws wherefor cases of all persons eligible therefor must be considered.

We, therefore, direct the Registrar of the Cooperative Society to initiate an enquiry against the persons concerned who were responsible for making a wrong representation before us and take suitable action against them in accordance with law. We further direct that all amounts deposited by the Appellant before the First Respondent be refunded to him with penal interest at the rate of 24% per annum, subject, of course, to deduction of such amount to which the First Respondent was entitled to for admitting him as a member of the Society. The First Respondent shall also pay a further sum of Rs. 1,00,000/- (Rupees one lakh only) to the Appellant herein by way of compensation. The First Respondent shall also pay a sum of Rs. 1,00,000/- (Rupees one lakh only) to the Second Respondent by way of compensation. Such payments be made to them within a period of four weeks from date. The First Respondent shall be at liberty to recover the amount of interest as also the amount of compensation directed to be paid to the Appellant herein from such persons who may be found responsible therefor.

For the foregoing reasons, these appeals are dismissed, subject, however, to the aforementioned observations and directions. The parties shall, however, in the facts and circumstances of the case pay and bear their own costs throughout.

In view of our views aforementioned, it is not necessary for us to pass any separate order on the interlocutory applications. They are disposed of accordingly.