VIKAS CO Vs. REGISTRAR, CO

JUDGEMENT

(1.) By this petition under Art. 226 of the Constitution of India, the Vikas Co-operative Group Housing Society Ltd. has challenged the legality and validity of the order dated July 10, 1986 of the Joint Registrar, Co-operative Societies, whereby Shri K.L. Kadamb, Assistant Registrar, was appointed as liquidator under section 66(1) of the Delhi Co-operative Societies Act, 1972 to receive all record of the society and thereafter prepare the account books for further necessary action within three months of the issuance of the order. The order preceding the operative portion reads as under:

(2.) The relevant facts are these: The petitioner-society was formed in Oct., 1971 and it was registered under the Bombay Co-operative Societies Act, 1925 and is now governed by the provisions of the Delhi Co-operative Societies Act, 1972. The society at its inception had 304 members; its membership changed from time to time, and new members numbering about 42 were inducted into the society. The society was allotted a plot of land measuring about 6 acres on 30th Jan., 1975 in Pitampura, Delhi. The society deposited Rs.2,00,000 towards the cost of land; but substantial amount remained to be paid. The society asked its members to pay a land premium at 25% of Rs.5,000 to the society, and the same was to be paid to the Delhi Development Authority by 15th Feb., 1975. The members of the society, it seems, did not respond to the above demand of the society and, therefore, the demanded payment towards the cost of the land could not be paid in time. The Registrar, Co-operative Societies, on 26th Dec., 1978/17th March, 1979 passed an order for the liquidation of the society. On 13th July, 1979 the Deputy Director (Co-operative), Delhi Development Authority, wrote a letter to the Registrar, Co-operative Societies, stating that the society was interested in the allotment of 2 acres of land which had already been offered to the society prior to the order dated 17th March, 1979 and the Registrar, Co-operative Societies, was asked whether the society could be revived at that stage. The Registrar, through his Deputy Registrar wrote to the Deputy Director, Delhi Development Authority, that the society could be revived provided the Delhi Development Authority makes arrangement for allotment of a plot of land measuring 2 acres and the society pays the money in respect of the land premium. The Delhi Development Authority allotted a piece of land measuring 2 acres to the society on 8th Feb., 1980 and required the society to pay the balance cost of land of Rs.2,37,076 by 8th March 1980. The society after prior intimation to the Registrar, Co-operative Societies deposited the balance cost of Rs.2,37,076 within the required time. The society also applied to the Registrar on 4th March 1980 for cancellation of the winding-up order.

(3.) The Registrar vide his memo dated 27th Feb., 1980 wrote to the liquidator not to take any action against the society as the society had been given time upto &h March, 1980 for making the payment towards the cost of land. The Delhi Development Authority gave possession of land measuring 2 acres to the society in Pitampura residential scheme under the Group Housing Scheme on 2nd Nov., 1981. The society, thereafter, submitted building plans for the approval of the Joint Director (Buildings) and the building plans of the society were approved. The society, admittedly, has commenced construction and the construction is in midway. It is further alleged that the accounts of the society for the years 1978-79 to 1984-85 were audited by M/s. Ravi Bhatia & Co., Chartered Accountants and their fees amounting to Rs.6,929 were paid (Annexure 10). The balance sheet for the period ending 30th June, 1985 has been filed on the record; and that shows that building funds amounting to Rs.36,63,560 have been raised from the members and substantial amounts totalling almost Rs.35,00,000 have been paid to the various contractors.