D.D.A vs Bankmens Co-Op.Group Housing Soc. & Ors

2. We may first refer to the facts of Civil Appeal No. 6805 of 2013 relating to Bankmens Co-operative Group Housing Society (hereinafter referred to as the ‘Bankmens CGHS’). Some employees of the State Bank of India resolved to form a Co-operative Group Housing Society, namely Bankmens CGHS Ltd., on 06.10.1983 under the Chairmanship of one Deepak Khanna. The Society was registered with one Shri R.K. Mangla, as its Secretary. The Society had given a list of 74 promoter members. Correspondence was exchanged between the Bankmens CGHS, Registrar of Co- operative Societies (hereinafter referred to as ‘RCS’) and the Delhi Development Authority (hereinafter referred to as ‘DDA’). The Bankmens CGHS did not comply with various directions of the RCS and it was placed under liquidation on 30.03.1992. Though Liquidator was appointed, he did not take over the records of the Bankmens CGHS.

4. The case of the appellant is that when it requested the RCS to verify the names of the members, the reply given was that all the records of the Bankmens CGHS were with the Central Bureau of Investigation (hereinafter referred to as the ‘CBI’) pursuant to the directions issued by the High Court of Delhi in Writ Petition No. 10066 of 2004, filed by one Yogi Raj Krishna Bankmens Co-operative Group Housing Society Ltd. & Ors. Thereafter, DDA wrote to the CBI but the CBI did not provide the record and replied that it was the duty of the RCS to verify the names of the members. In the year 2012, the Bankmens CGHS filed another Writ Petition No. 3546 of 2012 praying for directions to the DDA to handover the vacant possession of plot pursuant to the directions in LPA No.912 of 2004 decided on 08.02.2006. The Writ Petition was disposed of on 23.07.2012. The Delhi High Court directed the DDA to process the case of the Bankmens CGHS for possession of plot within a period of one month. This order is under challenge in Civil Appeal No. 6805 of 2013 @ SLP (C) No.18747 of 2013.

5. The facts of Safdarjung Co-operative Group Housing Society (hereinafter referred to as ‘Safdarjung CGHS’), are similar. The Safdarjung CGHS was registered with the RCS on 18.11.1983. One Shri Sudarshan Tandon moved an application on 09.08.1983 for registration of the Safdarjung CGHS showing that it had 83 promoter members. The Society wanted to change the names of its members but this action was not approved by the RCS and finally on 06.11.1990 an order was passed for liquidating the Safdarjung CGHS. Some of the records of the Safdarjung CGHS came into possession of one Mahanand Sharma who was not even a member of the Safdarjung CGHS. On 01.12.1998, an application was moved by Mahanand Sharma for revival of the Safdarjung CGHS. Thereafter the Safdarjung CGHS was revived on 26.04.1999. On 24.11.1999 the Office of the RCS recommended the name of Safdarjung CGHS for allotment of land. After the Society was revived, like in the case of Bankmens CGHS, a plot of land was provisionally allotted to Safdarjung CGHS. Thereafter, Safdarjung CGHS filed a Writ Petition No.1990 of 2004, which was disposed of along with the case of Bankmens CGHS (WP No. 1521 of 2004). Aggrieved by this order, an LPA No.904 of 2004 was filed by the DDA in this case also and identical order was passed for verification of the members. Thereafter, similar correspondence took place between the DDA, Office of the RCS and the CBI.

6. On 03.03.2011, Safdarjung CGHS filed a Writ Petition (C) No. 13298 of 2009 in the High Court of Delhi claiming that though it had paid the amount demanded to the DDA, the plot of land in Dhirpur had not been handed over on account of the CBI case pending against the office bearers of the Society. The High Court directed that the RCS should initiate fresh enquiry into the list of members submitted by the Safdarjung CGHS and it may also rely upon the investigation undertaken by the CBI. On 14.09.2011 enquiry report was submitted and it was found that the list of members was not authentic. Thereafter, the RCS on 10.01.2012 passed an order that the names of the members of the respondent Safdarjung CGHS cannot be recommended to the DDA for allotment of land.

7. Aggrieved by the aforesaid order of the RCS on 28.01.2012, Safdarjung CGHS filed Writ Petition (C) No. 1168 of 2012 claiming that the Society was a genuine Society and the Writ Petition was disposed of on 27.02.2012 on the ground that the case of the Safdarjung CGHS was identical to the case of Lords Cooperative Group Housing Society Vs. Registrar, Cooperative Societies and Ors., which was disposed of on 23.05.2011. The RCS was directed to take fresh decision in the matter. Thereafter, on 02.05.2012, the RCS recommended the names of the members of Safdarjung CGHS to the DDA. After the decision of the High Court in Bankmens CGHS’s case on 23.07.2012, the Safdarjung CGHS filed Writ Petition (C) No. 5109 of 2012 claiming relief of physical possession of the allotted plot. The High Court disposed of the petition upon the statement of the counsel for DDA that the plot would be handed over to the Society within a period 15 days. It is not disputed that possession of this plot was actually handed over to the Safdarjung CGHS pursuant to this order. Both the order dated 27.02.2012 passed in W.P.(C) No.1168 of 2012 and order dated 22.08.2012 passed in W.P.(C) No.5109 of 2012 have been challenged in C.A. Nos. 6803-6804 of 2013 @ SLP (C) Nos. 3268-3269 of 2013.

17. The argument made in Safdarjung CGHS’s case is that the DDA had acquiesced to the orders passed by the Delhi High Court. This argument is without merit. The delay in filing the petition was condoned and now the respondents cannot be allowed to urge that the appeal is not maintainable. We may make it clear that we have not gone into certain arguments of the learned Solicitor General where he had referred to the charge sheets in both the cases because we felt that we should not make any comment that would have bearing on the criminal trial. We further clarify that any observations made herein have been made only with a view to decide these cases and will have no impact on the criminal cases.

18. Another argument raised is that verification of the members is only to be done when the plots are to be allotted and such verification is not required at the time when the land is to be allotted to the Society. We are not at all in agreement with this submission. If this submission is accepted, in every case the DDA will be presented with a fait accompli and the situation as prevailing in Lords CGHS’s case would come into play. In a case like the present one where the very revival of the society or the creation thereof is wholly illegal, verification of the members must be done even at the stage before the land is allotted to the society.

19. In view of the above discussion we are clearly of the view that the revival of the Societies was illegal. It was manipulated by persons who had no connection with the Societies. We are prima facie of the view that the builder mafia had a big hand in getting the Societies revived. Hence we hold that the very revival of the Societies is illegal and the memberships are not genuine and hence the appeals are allowed. However, there may be some members of the Societies who must have been duped by the promoters. Therefore, we direct the DDA to refund the money deposited to the Societies along with interest @10% p.a with effect from the date when the money was deposited with the DDA. The amount be paid within 2 months from today. The Societies shall in turn ensure that within 4 weeks thereafter the amount deposited by the members is returned to them along with the interest aforesaid. This will alleviate the hardship of genuine members.

20. Accordingly, Civil Appeal Nos. 6805 of 2013 and 6803-6804 of 2013 filed by the DDA are allowed and the judgments/orders of the Delhi High Court 23.07.2012 , 27.02.2012 & 22.08.2012 are set aside and the Writ Petition (C) Nos. 3546, 1168 and 5109 of 2012 filed by Bankmens CGHS and Safdarjung CGHS are dismissed with the aforesaid terms.

CIVIL APPEAL NO. 8627 OF 2014

21. This appeal is directed against the interim order of the Delhi High Court whereby the High Court directed that the membership of the Society be got verified. In view of what has been discussed above, there can be no ken of doubt that verification of the members must be done to ensure that the members of the society are genuine members. Hence Civil Appeal No. 8627 of 2014 is dismissed.