Vivek Malhotra v. Registrar Cooperative Societies, Delhi

Delhi High Court · 28 May 2025 · 2025:DHC:4761-DB
Prathiba M. Singh; Rajneesh Kumar Gupta
W.P.(C) 5039/2025
2025:DHC:4761-DB
property petition_allowed Significant

AI Summary

The Delhi High Court directed allotment and possession of a cooperative society flat to a member after dismissal of society's objections and payment of outstanding ground rent.

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W.P.(C) 5039/2025
HIGH COURT OF DELHI
Date of Decision: 28th May, 2025
W.P.(C) 5039/2025, CM APPLs. 33960/2025 & 33961/2025
VIVEK MALHOTRA .....Petitioner
Through: Mr. Rajiv Vig, Adv.
VERSUS
REGISTRAR COOPERATIVE SOCIETIES , DELHI & ORS. .....Respondents
Through: Mr. Abhishek Gupta, Adv. for DDA.
(M:9990075205)
Mr. Manashwy Jha, Panel Counsel (Civil), GNCTD for R-1.
CORAM:
JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA
Prathiba M. Singh, J. (Oral)
JUDGMENT

1. This hearing has been done through hybrid mode. CM APPL. 33960/2025 (for directions) CM APPL. 33961/2025(for exemption) in W.P.(C) 5039/2025

2. The present petition has been filed by the Petitioner- Mr. Vivek Malhotra under Article 226 of the Constitution of India, inter alia, seeking issuance of an appropriate writ directing the Respondent No.1- Registrar Cooperative Societies (hereinafter, ‘RCS’) to hand over the physical possession of the allotted flat to the Petitioner, through the Respondent No. 3 - Sleuth Cooperative G/H Society Ltd., immediately after the draw of lots conducted by the Respondent No. 2 - Delhi Development Authority (hereinafter, ‘DDA’).

3. This is a petition where the Petitioner has raised the grievance that despite all compliances, the allotment of the flat is not being made in favour of the Petitioner.

4. The background is that the Petitioner obtained membership of the Sleuth Cooperative G/H Society Ltd, Plot No. 6, Pocket -A, Sector 19B, Dwarka, New Delhi (hereinafter, ‘society’). The said society was formed with a total strength of 90 members and is registered with the RCS. The Petitioner is stated to have paid a sum of Rs. 55,00,000/- way back in 2002-2003 and was given membership of the said society vide membership no. 108. Despite this, the Petitioner has not been able to obtain possession of the flat.

5. The draw of lots is stated to have been held between 2012-2014 by the DDA, however, the Petitioner was not allotted the flat.

6. On 27th July, 2023, the RCS passed an order by which it directed forwarding the names of the Petitioner and four other similarly placed members to DDA for allotment of the flat. In compliance with the said order, the RCS on 17th October 2023 forwarded the name of the Petitioner and other four similarly situated members to the DDA for allotment of flats. On 25th October 2023, the DDA wrote to the society to provide certain information about the unallotted flats in the said society, however, the DDA did not conduct any draw of lots in respect of the allotment of flat to the Petitioner.

7. The Society sought review of the order of the RCS dated 27th July, 2023 which was dismissed by the RCS on 20th February 2024. Thereafter, the Society filed a revision petition against the orders of the RCS, however, the same was dismissed vide order dated 8th August, 2024 passed by the Financial Commissioner, Delhi. The Society then approached this Court in W.P.(C) 14473/2024 titled ‘The Sleuth Cooperative Group Society Pvt. Ltd. v. order dated 16th October, 2024. The relevant observations of the Division Bench are as under:

“8. Having heard learned counsel for the parties, this Court is of the view that the Inspecting Officer’s report and the Inquiry Officer’s report dated 23rd September, 2011 and 14th January, 2013 are of ‘vintage’ period and the petitioner/society cannot rely upon the same as no recovery proceedings have been initiated on the basis of allegations of financial irregularities and misappropriation of funds either against the contractor or the architect or respondent nos.2 to 6, till date. 9. In fact, the Financial Commissioner has rightly observed that even though the petitioner/society has relied on the inspection report and the inquiry report dated 23rd September, 2011 and 14th January, 2013 respectively, yet no document has been filed to show that the respondents were involved in the misappropriation of the funds of the society. 10. Since no documents have been placed on record to show what consequential action has been taken by the office of the RCS on these reports, this Court is of the view that the impugned order calls for no interference. Accordingly, the impugned order calls for no interference in writ jurisdiction and the same is dismissed.”

8. In view of the above order, the case of the Petitioner is that there is no reason whatsoever either for the RCS or the DDA to hold back the membership of the Petitioner.

9. Repeated letters have also been written by the Petitioner to the Respondents, however, it is submitted by ld. Counsel for the Petitioner that the allotment of the flat has still not taken place.

10. In this background, on the last date of hearing, i.e., 22nd April, 2025 notice was issued to the RCS as also the DDA. Further, the following directions were issued:

“11. In this background, issue notice. Ld. Counsel for Respondent No. 1- RCS accepts notice. Mr. Kuljeet Singh, Advocate appearing for Ms. Shobhana Takiar, accepts notice for Respondent No. 2- DDA. 12. Let the copy of the present petition be supplied to the Id. Counsel for DDA. 13. Issue notice to Respondent No. 3- Society. Let the notice be taken Dasti by the Petitioner. 14. List on 22nd May, 2024. 15. Let the DDA and RCS place on record the status report by the next date of hearing. 16. It is made clear that if the DDA is found to be unnecessarily holding up the allotment of the flat, stringent action would be liable to be taken.”

11. In terms of the order dated 22nd April, 2025 a status report has been filed by the DDA. On a perusal of the same it is found that the primary issue which appears to have been raised is that some ground rent is yet to be paid by the Petitioner and a list of details of the vacant flats have also not been given by the Society. Vide letter dated 14th May, 2025, the DDA requested the Administrator of Sleuth Cooperative G/H Society Ltd. to provide a list of flats and applicant details so that the draw of lots can be conducted. The letter dated 14th May, 2025 of the DDA is extracted below: As per the above letter, a sum of Rs.51,110/- is due till 14th July, 2025.

12. Ld. Counsel submits that the Petitioner is willing to deposit the said amount.

13. From the above chronology of events it is clear that there is no justifiable reason for not allotting the flat to the Petitioner. The Society’s stand has been rejected by the Ld. Division Bench of this Court vide order dated 16th October 2024. Even the DDA’s stand is that some ground rent is to be paid. Under such circumstances, let the amount of ground rent be deposited by the Petitioner, by 10th June, 2025 with the DDA. The Society, Sleuth Cooperative G/H Society Ltd. shall inform the DDA as to which are the vacant flats, by the 10th June, 2025 itself. The draw of lots shall be conducted by the DDA by 20th June, 2025 and the allotment shall be made in favour of the Petitioner by 1st

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14. Let the compliance report be placed before this Court by 31st Both the applications are disposed of in these terms. All pending application(s), if any, are also disposed of.

15. List on 31st PRATHIBA M. SINGH JUDGE RAJNEESH KUMAR GUPTA JUDGE MAY 28, 2025 dj/rks