ISHWAR NAGAR CO OP HOUSING BUILDING SOCIETY Vs. PARMA NAND SHARMA
LAWS(SC)-2010-11-68
SUPREME COURT OF INDIA (FROM: DELHI)
Decided on November 15,2010

ISHWAR NAGAR CO-OP. HOUSING BUILDING SOCIETY Appellant
VERSUS
PARMA NAND SHARMA Respondents

JUDGEMENT

Mukundakam Sharma, J. - (1.) Leave granted.
(2.) This Appeal is directed against the judgment and order dated 28/03/2008 in W.P. No. 474/1982 of the High Court of Delhi wherein the High Court allowed the writ petition filed by the respondent-1 and whereby resolution and order dated 14th January, 1978 passed by the appellant and the order of the Registrar, Cooperative Societies dated 17th May, 1978 and the order of the Deputy Registrar dated 5th November, 1981 whereby the name of the respondent-1 had been removed from the list of members of the appellant-society were quashed and set aside.
(3.) The respondent-1, Dr. Parmanand Sharma was enrolled as a member of the appellant society vide membership No. 35 on 11th March 1961. In 1968, he purchased a property bearing No. A-19/A, Kailash Colony, New Delhi in the name of his Hindu Undivided Family consisting of respondent-1, his wife and two minor children in 1968 and a structure was constructed thereon in 1969. According to the appellant-society, this construction is a residence-cum- nursing home, whereas respondent-1 claims it to be only a nursing home, to which question we will refer later. In this chain of events, the membership of the respondent-1 was terminated from the appellant society on the ground that the respondent-1 owned another property, i.e., 19/A, Kailash Colony, in Delhi, since as per Rule 25 (1)(c) of the Delhi Cooperative Societies Rules, 1973 (hereinafter referred to as "the Rules" ), upon owning another property, the appellant was not entitled to be member of a Cooperative Housing Society. The respondent-1 was also expelled on 14th January 1978 from the society under Section 36(1) of the Delhi Cooperative Societies Act, 1972 (hereinafter referred to as "the Act") for being a persistent defaulter, since he had not paid the dues demanded by the society. The action of the society expelling the respondent-1 was approved by the Registrar, Cooperative Societies on 17th May 1978. On 26th February 1980, an application was filed by respondent-1 under Section 60 of the Act for reference of dispute to arbitration. The reference was dismissed on 5th November, 1980. Being aggrieved, the respondent filed a writ petition before the High Court, wherein the High Court by the impugned judgment and order dated 28/03/2008 held that 19/A, Kailash Colony, Delhi was being used for running a nursing home, i.e., for a commercial purpose and therefore, that would not constitute a violation of Rule 25 of the Rules. By the said order, the HC set aside the expulsion orders.;


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