{"id":735,"date":"2004-04-21T00:00:00","date_gmt":"2004-04-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-new-friends-co-operative-vs-rajesh-chawla-and-ors-on-21-april-2004"},"modified":"2017-04-21T11:20:33","modified_gmt":"2017-04-21T05:50:33","slug":"the-new-friends-co-operative-vs-rajesh-chawla-and-ors-on-21-april-2004","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-new-friends-co-operative-vs-rajesh-chawla-and-ors-on-21-april-2004","title":{"rendered":"The New Friends Co-Operative &#8230; vs Rajesh Chawla And Ors on 21 April, 2004"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">The New Friends Co-Operative &#8230; vs Rajesh Chawla And Ors on 21 April, 2004<\/div>\n<div class=\"doc_author\">Author: A Pasayat<\/div>\n<div class=\"doc_bench\">Bench: Doraiswamy Raju, Arijit Pasayat.<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  538 of 2004\n\nPETITIONER:\nThe New Friends Co-operative House Building Society Ltd.\n\nRESPONDENT:\nRajesh Chawla and Ors.\n\nDATE OF JUDGMENT: 21\/04\/2004\n\nBENCH:\nDORAISWAMY RAJU &amp; ARIJIT PASAYAT.\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<\/p>\n<p>ARIJIT PASAYAT, J.\n<\/p>\n<p>\tThe appellant-society calls in question legality<br \/>\nof the judgment rendered by Division Bench of the Delhi<br \/>\nHigh Court whereby it was held that respondents 1 to 3<br \/>\nwere not defaulters and, therefore, demands raised<br \/>\nagainst them for the period prior to 4th August, 1984<br \/>\nwere unsustainable. Respondents nos. 1 to 3 were the<br \/>\nwrit petitioners nos. 1 to 3 in the writ petition filed<br \/>\nby them before the High Court.  There was further<br \/>\ndirection given by the High Court that there may have<br \/>\nbeen many members to whom similar demands have been<br \/>\nsent. They were also entitled to refund of any payment<br \/>\ntaken by the society from them.\n<\/p>\n<p>\tWrit application was filed by the respondents with<br \/>\nprayer to quash the order dated 1.2.2003 issued by the<br \/>\nElection Officer of the appellant-society and for<br \/>\nsetting aside the orders dated 23.1.2003 passed by him<br \/>\nand for a direction for carrying out fresh inquiry<br \/>\nregarding defaulters. They had filed nomination for the<br \/>\npost of President, Member and Vice-President of the<br \/>\nsociety for the election which was scheduled to be held<br \/>\non 1.2.2003.  A bare reading of the writ petition shows<br \/>\nthat they were not satisfied with the list of<br \/>\ndefaulters prepared.  The writ petition was filed on<br \/>\n8.1.2003.  An affidavit was filed by the Secretary of<br \/>\nthe appellant-society indicating as to how the stand of<br \/>\nthe writ petitioners about they being not defaulters<br \/>\nwas not correct. It has been specifically pointed out<br \/>\nthat in the petition before this Court that the books<br \/>\nof accounts and correspondences were produced on<br \/>\n9.7.2003. Matter was listed on 25.7.2003 but no hearing<br \/>\ntook place on account of lawyers&#8217; strike at the Delhi<br \/>\nHigh Court.  But the appellant&#8217;s officers were present<br \/>\nin the Court with the books of accounts and the<br \/>\nrecords.\n<\/p>\n<p>The High Court seems to have adjudicated as to<br \/>\nwhether the writ petitioners were defaulters or not.<br \/>\nReference was made to a letter dated 4.8.1984 wherein<br \/>\nit has been stated that no dues were outstanding<br \/>\nagainst Shri Rajesh and Shri Rajiv Chawla holders of<br \/>\nplot no. 230, Sector VIII.  Whether there was any<br \/>\namount outstanding would not normally and could not<br \/>\neffectively and finally be adjudicated in a writ<br \/>\npetition and that too filed against a decision<br \/>\nincidentally rendered in the course of election<br \/>\nproceedings by the Election officer. Separate forums<br \/>\nare available in the statutory governing and<br \/>\nfunctioning of co-operative society whereunder only<br \/>\nsuch issues affecting substantial civil rights of<br \/>\nparties could be got adjudicated. The High Court seems<br \/>\nto have not considered all such relevant aspects and<br \/>\nseems to have proceeded superficially and summarily.<br \/>\nPrayer in the writ petition was to the following<br \/>\neffect:\n<\/p>\n<p>&#8220;(i)\tIssue a writ in the nature of<br \/>\nMandamus or any other like writ or order<br \/>\nor direction directing the second and<br \/>\nthe third respondent to enquire into the<br \/>\nalleged List of Defaulters submitted to<br \/>\nthem by the present Managing Committee<br \/>\nof the Society;\n<\/p>\n<p>(ii) Issue a writ in the nature of<br \/>\nMandamus or any other like writ or<br \/>\ndirection or order directing the second<br \/>\nand the third respondent to prepare,<br \/>\nafter holding the necessary enquiry, a<br \/>\nfresh and actual List of Defaulters of<br \/>\nthe members of the Society;\n<\/p>\n<p>(iii) Issue a writ of Certiorari or any<br \/>\nother like writ or direction or order<br \/>\nquashing the Notification dated<br \/>\n6.01.2002 proposing to hold elections of<br \/>\nthe Managing Committee of the Society on<br \/>\nthe 1.2.2003;\n<\/p>\n<p>(iv) Issue a writ of prohibition or like<br \/>\nwrit, order or direction, prohibiting<br \/>\nthe respondent nos. 5 and 6 herein from<br \/>\nholding the election of the members of<br \/>\nthe Society on 1.2.2003; and<\/p>\n<p>(v) pass such other and further order as<br \/>\nthis Hon&#8217;ble Court may deem fit and<br \/>\nproper in the facts and circumstances of<br \/>\nthe case to do complete justice between<br \/>\nthe parties.&#8221;\n<\/p>\n<p>\tThe question whether a member was a defaulter had<br \/>\nto be adjudicated in appropriate proceedings and writ<br \/>\napplication prima facie was not a proper course.<br \/>\nAssuming without accepting that the stand taken for the<br \/>\nalleged defaulters can be entertained and gone into in<br \/>\nthe course of conduct of election, it could, if at all<br \/>\nbe only for the limited purpose of election and the<br \/>\nright of the society or the member for having their<br \/>\nrights and liabilities finally and effectively get<br \/>\nadjudicated by arbitration proceedings statutorily<br \/>\nprovided for under the statute in lieu of proceedings<br \/>\nbefore civil court, and the conclusions arrived at or<br \/>\nrecorded in the course of election proceedings shall be<br \/>\nonly without prejudice to and ultimately subject to all<br \/>\nor any such proceedings and decisions by such statutory<br \/>\nforums. In any event without proper hearing and<br \/>\nconsideration of relevant materials, High Court seems<br \/>\nto have arrived at abrupt conclusions. High Court&#8217;s<br \/>\norder is consequently unsustainable for more than one<br \/>\nreason. To add further to the vulnerability of the High<br \/>\nCourt&#8217;s judgment is the direction given for refund and<br \/>\nin favour of those who have not approached the Court<br \/>\nalso, as though it is deciding statutory Arbitration<br \/>\nproceedings, envisaged under the Co-operative Societies<br \/>\nAct concerned. It was no body&#8217;s case that any other<br \/>\nperson has been illegally asked to pay, or that any<br \/>\nsuch collection has been illegally made. Direction for<br \/>\nrefund to other members is without application of mind<br \/>\nand totally uncalled for. The records and<br \/>\ncorrespondences were apparently called for. If the High<br \/>\nCourt wanted to decide the matter it should have been<br \/>\ndone after looking into them which has not been done.<br \/>\nEven such decision, as noticed above, should be made<br \/>\nsubject to any adjudication in the Statutory<br \/>\nArbitration proceedings and not to decide finally the<br \/>\ncivil liabilities inter se of parties.  Therefore, we<br \/>\nset aside the judgment of the High Court and remit the<br \/>\nmatter back for fresh adjudication.  We make it clear<br \/>\nthat except quashing the directions given for refund to<br \/>\nother members and restraining the High Court from<br \/>\ngiving any such directions, rest of the matter shall be<br \/>\nadjudicated on its own merit in accordance with law and<br \/>\nsuch exercise could only be for the limited purpose of<br \/>\ntreating the person(s) concerned &#8220;defaulters or not&#8221;<br \/>\nfor participating in the election process and not for<br \/>\nforeclosing the right of the society to recover any<br \/>\namount as such, through the forums prescribed under the<br \/>\nconcerned Co-operative Societies Act and in accordance<br \/>\nwith law.\n<\/p>\n<p>\tIt appears that respondents 1 to 3 have filed<br \/>\napplication before the Registrar of the Society on<br \/>\n27.8.2003 for referring the dispute to arbitration,<br \/>\nwhich alone is the proper procedure to get their civil<br \/>\nliability finally and effectively adjudicated.  The<br \/>\nHigh Court shall consider the desirability of<br \/>\nadjudicating the issues raised in the writ petition in<br \/>\nview of the recourse taken by respondents 1 to 3 (writ<br \/>\npetitioners before the High Court) themselves before<br \/>\nthe Competent Authorities, availing already of their<br \/>\neffective remedies. The appeal is accordingly disposed<br \/>\nof. There shall be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India The New Friends Co-Operative &#8230; vs Rajesh Chawla And Ors on 21 April, 2004 Author: A Pasayat Bench: Doraiswamy Raju, Arijit Pasayat. CASE NO.: Appeal (civil) 538 of 2004 PETITIONER: The New Friends Co-operative House Building Society Ltd. RESPONDENT: Rajesh Chawla and Ors. DATE OF JUDGMENT: 21\/04\/2004 BENCH: DORAISWAMY RAJU &amp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-735","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The New Friends Co-Operative ... vs Rajesh Chawla And Ors on 21 April, 2004 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-new-friends-co-operative-vs-rajesh-chawla-and-ors-on-21-april-2004\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The New Friends Co-Operative ... vs Rajesh Chawla And Ors on 21 April, 2004 - Free Judgements of Supreme Court &amp; 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