MANINDER DEEP SINGH MAHANT Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Both the petitioners, who claim to be members of Rawalpindi Self Supporting Co-operative Cinema Society Ltd. (for brevity hereinafter referred to as 'the Society') have invoked the writ jurisdiction of this Court claiming the following relief:

(2.) It has been claimed that the society - respondent No.3 was registered under the Punjab Self-Supporting Co-operative Societies Act, 2006 (for short '2006 Act') and was the owner of land and building known as 'Society Cinema', Ludhiana, which was on lease with a third party. By an agreement dtd. 14/3/2018, Annexure P13, society agreed to sell the land and building of the cinema to M/s Periwal Enterprises Private Ltd. for Rs.16.00 crores. A sale deed dtd. 12/6/2020, Annexure P14, was executed between the parties whereby 1/4th share of the property was sold to the company for Rs.4.00 crores.

(3.) Learned senior counsel appearing for the petitioners has urged that the property of a society can only be disposed off under Sec. 10 or under Sec. 63 of the 2006 Act and in any case, it cannot be alienated to a private limited company. He contends that as the society had sold the property in breach of the provisions of 2006 Act, applications dtd. 7/4/2022 and 6/1/2023, Annexures P12 and P16, respectively, were submitted to the Registrar, Cooperative Societies (RCS), Punjab - respondent No.2 to conduct an inquiry under Sec. 53 of the 2006 Act, but no action was taken. Learned Senior counsel submits that the information about the sale came to the knowledge of the petitioners during the pendency of a civil suit filed inter se the parties and the petitioners have separately filed a criminal complaint in New Delhi. It has been asserted that the Managing Director of M/s Periwal Enterprises Private Ltd. is the spouse of the President of the society and they have embezzled huge funds of the society.