Girija Viswanathan & Anr vs Pragya Cooperative Group Housing Society Ltd

Heard counsel for the parties.

Mrs. Girija Viswanathan has filed CC/1558/2018 for directing Pragya Cooperative Group Housing Society Ltd. (the opposite party) to refund the principal amount of Rs.3421333/-, pay Rs.14678667/- as compensation for loss caused by the society to the complainants or in alternative, to allot a flat of ‘B’ Category of the same price originally paid by the complainant as per provisions of Delhi Cooperative Societies Act, 1972, to pay pendent-lite and future interest @ 18% per annum, to pay Rs.860000/- for loss of rent to the complainants from August 2014 to February 2018, to pay Rs.10/- lacs towards compensation for mental agony and harassment, to pay Rs.5/- lacs towards the cost of litigation and any other relief which is deemed fit and proper in the facts of the case.

Smt. Sangeeta and Ashwani Gupta have filed CC/1559/2018 for directing Pragya Cooperative Group Housing Society Ltd. (the opposite party) to refund the principal amount of Rs.3495373/-, to pay Rs.14504627/- as compensation for loss caused by the society to the complainants or in alternative, to allot a flat of ‘B’ Category of the same price originally paid by the complainants as per provisions of Delhi Cooperative Societies Act, 1972, to pay pendent-lite and future interest @ 18% per annum, to pay Rs.498000/- for loss of rent to the complainants from August 2014 to February 2018, to pay Rs.506000/- towards interest paid on home loan, to pay Rs.5/- lacs towards compensation for mental agony and harassment, to pay Rs.5/- lacs towards the cost of litigation and any other relief which is deemed fit and proper in the facts of the case.

Sachidanand Tripathi has filed CC/1560/2018 for directing Pragya Cooperative Group Housing Society Ltd. (the opposite party) to refund the principal amount of Rs.4150110/-, to pay Rs.15849890/- as compensation for the loss caused by the society to the complainant or in alternative, to allot a flat of ‘A’ Category of the same price originally paid by the complainants as per provisions of Delhi Cooperative Societies Act, 1972, to pay pendent-lite and future interest @ 18% per annum, to pay Rs.750000/- for loss of rent to the complainant from January 2014 to February 2018, to pay Rs.5/- lacs towards compensation for mental agony and harassment, to pay Rs.5/- lacs towards the cost of litigation and any other relief which is deemed fit and proper in the facts of the case.

The facts in short leading to the controversy are as follows:

(a) Pragya Cooperative Group Housing Society Ltd. (the opposite party) was a “housing co-operative society” registered under Delhi Cooperative Societies Act, 1972. The opposite party was allotted land bearing plot No.1B, Sector-2, Dwarka, New Delhi, for construction of multi-storeyed flats, for its members. on 21.08.2007, the opposite party gave an advertisement inviting applications from eligible persons for membership in the society. In pursuance of the advertisement, the complainants applied on 02.09.2007 and deposited required amount with the opposite party, for their enrolment as the members. The opposite party, by resolution dated 02.09.2007, accepted their applications of the complainants and enrolled them as the members of the Cooperative Society and informed them through letter dated 03.09.2007. Later on, Registrar, Cooperative Societies, Delhi, by order dated 23.08.2010, held that enrolment of the complainants as members in the Cooperative Society was not in accordance with Rule 24 of the Rules framed under the Cooperative Societies Act, 1972 and not valid. The complainants challenged the order dated 23.08.2010, in Revision No.22 of 2010 before Financial Commissioner which was dismissed on 16.04.2015. Thereafter, they challenged the order by Writ Petition (Civil) no.4491 of 2015 which was also dismissed by the order dated 23.09.2016. The complainants filed Special Leave Petition (C) No.35780-35781 of 2016 before the Supreme Court. Supreme Court by order dated 14.12.2016, declined to interfere with the order of the High Court, but observed that it should be open to the complainants to seek refund from Cooperative Society.

(b) Thereafter, the complainants gave a legal notice to the opposite party on 30.10.2017 for refund of their money along with other consequential reliefs. The opposite party in the reply notice dated 16.11.2017, asked the complainants to verify the deposit and settle the matter in respect of the refund. The complainants were not satisfied with the reply notice of the Cooperative Society and raised their grievance before the Public Grievance Commission, Delhi, who vide order dated 14.03.2018, observed that the complainants are entitled to share the profit coming from the sale of the flats. Thereafter, these complaints have been filed for the aforesaid reliefs.

(c) Similarly situated six members, whose membership also held as illegal by Registrar, filed Original Suit no.308 of 2018 before the Delhi High Court for refund of their amount. Before Delhi High Court, the President of the opposite party showed inability of the opposite party to refund on the ground that money realised from these members had been invested in construction of the flat and the opposite party did not have sufficient fund to refund. Delhi High Court vide order dated 19.12.2018, permitted the opposite party to sell the flats, which were constructed from the money of the plaintiffs and refund them. However, later on High Court vide order dated 16.07.2019, formed a committee of two Advocates and directed them to auction six flats. The committee auctioned six flats and submitted report on 09.10.2019, which was confirmed by High Court on 19.02.2020. Registrar Cooperative Society and Delhi Development Authority however, raised objection against the order dated 19.02.2020, which were rejected vide order dated 03.11.2020 and the opposite party was directed to refund the amounts of six plaintiffs with interest @9% per annum.

The deposit of the amounts by the complainants, are not disputed. If enrolment of the complainants as the member of the opposite party was held illegal by Registrar Cooperative Society, the opposite party would have refunded entire amount of the opposite party at that time itself. But at no point of time, the opposite party offered for refund of the amounts of the complainants. Delhi High Court, being a jurisdictional High Court of this Commission, we are bound to follow the same order in these complaints also.

ORDER

In view of the order of the High Court, the complaints are partly allowed. The Registrar, Cooperative Society, Delhi is permitted to auction/sell the three vacant flats available in the society as per the procedure prescribed by the Delhi High Court in the order dated 16.07.2019 and from the sale proceeds, refund the entire money of the complainants along with interest @9% per annum from the date of deposit till the date of payment within a period of three months from the date of this judgment. The complainants shall produce a certified copy of this order before the Registrar, Cooperative Society, Delhi along with proof of deposit made by them within ten days.