SATINDER PAL SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) I. Parties to dispute - General Co-operation and litigation are a semantic mismatch. The former epitomizes harmony and the latter, animosity; the former cements and the latter splinters; the former warms up heart and the latter leaves behind gall and bad-blood. The United Cooperative House Building Society (the respondent in CWP No.7742/2007), as the combination of words signify, ought to have made room for a united happy living of several persons under a common roof. This, it did not and so we have these litigations. The fight is between members of the society and persons who claim to be members by induction through resolutions of the committee. The bad blood is on account of alleged betrayal of trust by persons at the helm of the affairs of the society who have made arbitrary allotments of flats breaching principles of fair play and seniority. Caught in this cross-fire are the official respondents who have passed orders legitimizing the induction of membership and allegedly allowing several such persons to corner allotments by keeping at bay the old timers by brazen nepotism and corruption indulged by the office bearers of the society. II. Objects of the Society

(2.) The 4th respondent was registered under the Registrar of Cooperative Societies on 17.06.1987, found with the avowed object of purchase and construction of land and buildings as per the duly sanctioned plans for distribution amongst the members of the society. The object was also to undertake measures to spread knowledge of cooperative principles and practices. The persons eligible for admission as per Clause 5 of the Bye Laws were that the member shall be over 18 years of age and of sound mind, ordinarily resident in the area of the operation of society, of good character and intends to build a house of his own in the area of operation of the society. The area of operation of the society in Clause 3 states that it shall be at Belongi, Mohali and Doana only. The disqualification for the membership as set out in Clause 6 is that he could not have applied for bankruptcy and declared as insolvent or having suffered any conviction for offences involved dishonesty or moral turpitude within 5 years from the date of applying for membership.

(3.) The funds of the society would include the shares taken by each member, which shall be at least one share of the value of Rs.100/- at the time of admission and no member shall hold a share of which the nominal value exceeds Rs.10,000/- or 1/5th of the total share capital subscribed, whichever will be less. The Managing Committee as per Clause 13 shall vest in a body consisting of not more than 7 members and it shall hold office for a term of three years. The powers of the Managing Committee as set out in Clause 36 included the power to purchase or acquire land by exchange, lease or otherwise for construction of houses and to sell, lay out, or lease, size to members for construction of houses. Clause 37 also provides to the Managing Committee the competence to frame subsidiary rules.