MANAV CGHS LIMITED Vs. PO DELHI COOPERATION TRIBUNAL

JUDGEMENT

(1.) The petitioner-Society has grievance against the award dated 12th July, 1999 holding that it has no jurisdiction to waive off the interest from defaulter members on the defaulted amount. The petitioner-Society is of the view that General Body of the society is superior and final authority and if it has jurisdiction to take the decision of levying interest on the defaulters it has also jurisdiction and powers to waive off the same which in this case was the interest levied by the earlier Managing Committee on those persons who did not pay the demands raised by the society on account of suspension and delay in construction work.

(2.) The row sparked off when the petitioner society vide its resolution dated 7th July, 1996 passed by the General Body decided not to charge interest from the Members who did not pay the demand amount because of the suspension or delay in the construction work whereas the categories of the Members including R-2 to R-6 were charged interest as according to R-2 to R-6 the said action of the petitioner-Society is mala fide and is a premium on the defaulters as the Members who had paid the demanded amount within the time have not been given any benefits for their payment.

(3.) Apart from the aforesaid question of law the petitioner society also raised a plea that as per Section 28 of the DCS Act, 1972 the General Body of the society is supreme and any decision or action of the General Body cannot be subject to the claim contemplated under Section 60 of the DCS Act.