RAJ RANI & ORS. ETC. versus DELHI ADMINISTRATION & ORS.

RAJ RANI & ORS. ETC. versus DELHI ADMINISTRATION & ORS.

Membership formalities, payment of share money, and declaration requirements are mandatory; the actions of the nominated Managing Committee in declaring defaulters and allotting plots to new members were ultra vires, in violation of the Act and Rules, and done in bad faith. The Chairman's restoration of memberships and prioritization of allotments is just and correct. Declaration of defaulters based on the circular was illegal and contrary to bye-laws.

Parties
Petitioner: Raj Rani & Ors. etc.; Respondent: Delhi Administration & Ors.; Petitioner: Petitioner No. 59 in W.P. No. 340/72; Petitioner: Petitioner in W.P. No. 286/74; Respondent: R.R. 2, 6, 8, 10, and 12 in W.P. 340 & 1526 and R.R. 6, 8, 9, 11 and 12 in W.P. 286/74; Respondent: R.R. 13-178 in W.P. 1526/73
Jurisdiction
India
Judgment Date
10 December 1976
Procedural Posture
Writ Petition / Final Disposition
Outcome
Petitions allowed.
Legal Topics
Membership Formalities, Declaration of Defaulters, Allotment of Plots, Vires of Rule 56, Extension of Managing Committee, Ultra Vires, Malafide Action
Administrative Law Cooperative Societies Law Membership Formalities Declaration of Defaulters Allotment of Plots Vires of Rule 56 Extension of Managing Committee Ultra Vires +1 more

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Parties

Raj Rani & Ors. etc.

Petitioner

Delhi Administration & Ors.

Respondent

Petitioner No. 59 in W.P. No. 340/72

Petitioner

Petitioner in W.P. No. 286/74

Petitioner

R.R. 2, 6, 8, 10, and 12 in W.P. 340 & 1526 and R.R. 6, 8, 9, 11 and 12 in W.P. 286/74

Respondent

R.R. 13-178 in W.P. 1526/73

Respondent

Procedural Posture

Writ Petition / Final Disposition

Legal Issues

  1. 1 Whether the declaration of members as defaulters and subsequent enrolment of new members/allotment of plots was valid under the Delhi Cooperative Societies Act and Rules
  2. 2 Whether Rule 56 of the Delhi Cooperative Societies Rules was ultra vires section 71 of the Bombay Act as applied to Delhi and whether extension of the nominated Managing Committee was lawful
  3. 3 Whether payment of share money and application formalities for membership were mandatory or directory

Ratio Decidendi

Membership formalities, payment of share money, and declaration requirements are mandatory; the actions of the nominated Managing Committee in declaring defaulters and allotting plots to new members were ultra vires, in violation of the Act and Rules, and done in bad faith. The Chairman's restoration of memberships and prioritization of allotments is just and correct. Declaration of defaulters based on the circular was illegal and contrary to bye-laws.

Court Disposition

Petitions allowed.

Orders

  • Membership of alleged defaulters restored as per Chairman's report.
  • Persons referred to in the Chairman's report to apply afresh with affidavits; allotment of plots to proceed per priority fixed by Chairman.