Ishwar Nagar CO-OP.HOUSE Building Society v. Parma Nand Sharma and Ors.
DR. 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 G
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 H
A 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
8 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
C 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
D 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
E 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
F 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
G 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.
·,
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 977
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
4. The present appeal is directed against the above A
impugned judgment and order of the High Court by way of
Special Leave Petition on which we heard the counsel
appearing for the parties at length. The learned counsel for the
appellant contended that on the ground floor of the said
property, the respondent-1 is running a nursing home and that B
he is residing on the first floor. In that view, the appellant
contended that the property was being used for residential
purposes. Counsel for the appellant also submitted that the
respondent-1 in his various correspondences, pleadings and
affidavits has shown the property as his address which is c
conclusive proof that he is residing in the said property.
Moreover, it was also contended that respondent-1 had been
unable to disclose where he was alternatively residing and no
documents had been furnished to show that the said property
was being used exclusively and solely for commercial purpose. 0 In this regard, it was submitted that the user of the said property
being a resident therein, this not only violates Rule 25 of the
Rules, but also is contrary to the bye laws of the society and
the terms of perpetual lease agreement entered between Govt.
of India and the appellant society, in pursuance of which the E
respondent-1 would be entitled as being member of the
appellant-society. On the other hand, the learned counsel for the
respondent-1 refuted the claims made by the appellant
contending that the said property was used solely for a nursing
home, and since respondent-1 remained in the nursing home
for most of the time as a doctor, therefore it was solely for F
convenience's sake that he used the address to further
correspondence. This aspect, it was submitted, would not
render the property residential in any way. Further, counsel for
respondent-1 contended that the said property was purchased
in the name of the HUF, and not in respondent-1's name, and G
therefore the latter cannot be expelled from the membership of
the appellant-society. He also submitted that the respondent-1
cannot be expelled because of purchase of the said property
was facilitated before the Rules came into force in exercise of
power granted under the Delhi Cooperative Societies Act, H
A 1972. It was further contended that at the time of acquisition of
membership of the said society, the appellant's society was
governed by the Bombay Cooperative Societies Act, 1925,
which doesn't have any provision disqualifying a member of a
cooperative society on acquisition of another property in Delhi.
B Rule 25 has no retrospective application; therefore it was
submitted that expulsion of the respondent-1 is non est in law.
5. After hearing the parties in detail the questions which
arise in this appeal are: -
I. Whether Rule 25 of the Rules has a retrospective
application in debarring a member of a co-
operative society who enrolled as a member of the
society and acquired separate property before the
Rules came into force?
II. Whether bye laws of the society can debar the
respondent-1 on acquisition of a separate
residential/dwelling house in Delhi?
Ill. Whether the property purchased in the name of
HUF can debar the respondent-1 to continue as a
member of the appellant-society?
IV. Whether the nature of the property purchased is
residential or commercial?
Issue I
6. As far as applicability of Rule 25 of the Rules is
concerned, the learned counsel for the appellant contended that
the provisions contained in Rule 25 are applicable to all the
G members of the society, whether enrolled before or after the
enactment of the Delhi Co-operative Societies Rules, 1973
and in view of the said rule, the respondent-1 was ineligible to
continue to be a member of the society and his membership
was correctly terminated in accordance with law. In contrast, the
H learned counsel for the respondent-1 contended that at the time
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 979
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
of enrolment of respondent-1 and subsequent to purchasing of A
the property, the co-operative societies in Delhi were governed
by the Bombay Co-operative Societies Act, 1925 as extended·
to Delhi Co-operative Societies Rules, 1950. There was no
prohibition whatsoever at the relevant time for a person who
was a member of the co-operative society from purchasing any B
property. Subsequently, on 24.4.1973, the Delhi Co-operative
Societies Act and Delhi Co-operative Societies Rules, 1973
came into force and the earlier Act and the 1950 Rules stood
repealed. The 1973 rules prescribed eligibility criteria for
admission under the said Rule 25 and the eligibility criteria for c
admission are not same as required for continuation. Moreover,
it was contended that Rule 25 has no retrospective application.
7. Rule 25 reads as follows: -
"Disqualification for Membership- (1) No person shall be D
eligible for admission as a member of a. co-operative
society if he -
(a) has applied to adjudicated an insolvent or is an
undischarged insolvent; or
(b) has been sentenced for any offence other than an
offence not involving moral turpitude and dishonesty and
a period of five years has not elapsed from the date of
expiry of the sentence:
(c) in the case of membership of a housing society:
(i) owns a residential house or a plot of land for the
construction of a residential house in any of the approved
or un-approved colonies or other localities in the National
Capital Territory of Delhi, in his own name or in the name G
of his spouse or any of his dependent children, on lease
hold or free-hold basis or on power of attorney or on
agreement for sale;
Provided that disqualification of membership as laid down
in sub-rule (l)(c)(i) shall not be applicable in case of co
sharers of property whose share is less than 66. 72 sq.
metres of land; Provided further that the said
disqualification shall not be applicable in case of a person
who has acquired property on power of attorney or through
agreement for sale and on conversion of the property from
leasehold to freehold on execution of conveyance deed for
it, if such person applies for the membership of the housing
society concerned; (Amended on 6.8.97)
(ii) he deals in purchase or sale of immovable properties
either as principal or as agent in the national Capital
Territory of Delhi: or (iii) he or his spouse or any of his
dependent children is a member of any other housing
society except otherwise permitted by the Registrar .
. 2. Notwithstanding anything contained in the rules or the
bye-laws of the co-operative society, if a member
becomes, or has already become, subject to any
disqualification specified in sub~rule (1 ), he shall be
deemed to have ceased to be a member from the date
when the disqualifications were incurred.
3. A member who ceases to be a member of a co
operative society under sub-rule (2), shall not be entitled
to exercise rights of memberships or incur liability as
member with effect from the date referred to in sub-rule
(2) but as from the date he becomes a creditor of the co
operative society in respect of the amount due to him on
account of paid up share capital, deposit, cost of land
deposited or any other amount paid by him to the co
operative society as its member. As from the date of his
ceasing to be a member or the society under sub-rule (2),
the amount standing to his credit shall be paid to him by
the co-operative society within 3 months and when the co
operative society is already under liquidation, the amount
due to him will be credited as a debt due to a third party
from the co-operative society.
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 981
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
4. If any question as to whether a member has incurred A
any of the disqualification referred to in sub-rule (1) arises,
it shall be referred to the Registrar for decision. His
decision shall be final and binding on all concerned. The
power of the Registrar under this rule shall not be delegated
to any other person appointed to assist the Registrar." B
8. A perusal to Rule 25(2) makes it clear that after the said
Rules came into force, if a member has already become
subject to any disqualification specified in sub rule (1 ), he would
be deemed to have ceased to be a member from the date
when the disqualification was incurred. In the present case, the C
rule which is to be considered is Rule 25(1)(c)(i). The said Rule
also stipulates that no person shall be eligible for admission
as a member of the co-operative society, if he owns a
residential house or a plot of land for the construction of a
residential house in any of Territory of Delhi, in his own name D
or in the name of his spouse or any of his dependent children,
on lease-h.old or free-hold basis. The learned counsel for the
respondent-1 contended that since the said rule does not
come within the ambit of power given under Section 97(2) of
the Act to the Lt. Governor who is empowered to make rules E
about the conditions to be complied with by persons applying
for admission or admitted as members, the same cannot be
applied to the person who have already become a member to
disqualify him for the act done prior to coming into force of the
Rules. Further it was also contended that the said power is F
limited by section 98 of the Act which repeals the earlier Act
... and saves the right, privileges or obligations accrued or incurred
under the earlier Act repealed.
9. The first consideration in this regard is whether Section G
97 of the Act permits the Lt. Governor to make the above
disputed provision of rule 25. Section 97 of the Act reads as
follows:
"97 (1) The Lieutenant Governor may, for any co-operati\Je
society or class of co-operative societies, make rules to H
982 SUPREME COURT REPORTS [2010) 13 (ADOL.) S.C.R.
A carry out the purposes of this Act.
(2) In particular, and without prejudice to the generally of
the foregoing power, such rules may provide for all or any
following matters, namely ... -
.... (v)The conditions to be complied with by persons
applying for admission or admitted as members, for the
election admission of members, and for the payment to be
made and the interest to be acquired before the exercise
of the right of membership."
10. A perusal of the aforementioned provision indicates
that the power to frame rules is given by S. 97(1) to the Lt.
Governor to make rules to carry out the purposes of this Act
and the list of subjects mentioned in sub rule (2) is merely
0 illustrative as is clear when it says that "Jn particular, and
without prejudice to the generally of the foregoing power, such
rules may provide for all or any matters contained therein". It
is well-settled that the specific provisions as are contained in
several clause of sub-section (2) of 97 are merely restrictive
E and they cannot be read as restrictive of the generality of powers
prescribed by sub section (1) of S. 97. The particular matters
given in sub section (2) only illustrate and do not exhaust all the
powers conferred. In that connection reference may be made
to two analogous cases. First to that of Afzal Ullah v. State of
Uttar Pradesh reported at AIR 1964 SC 264 wherein principles
F for interpreting a provision similar in objective (of the United
Provinces Municipalities Act, 1916) were laid down. This Court
in the said case, held:
"13 ......... It is now well-settled that the specific provisions
G such as are contained in the several clauses of Section
298(2) are merely illustrative and they cannot be read as
restrictive of the generality of powers prescribed by
Section 298(1 ). If the powers specified by Section 298(1)
are very wide and they take in within their scope Bye-laws
H like the ones with which we are concerned in the present
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 983
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
appeal, it cannot be said that the powers enumerated A
under Section 298(2) control the general words used by
Section 298(1). These latter clauses merely illustrate and
do not exhaust all the powers conferred on the Board, so
that any cases not falling within the powers specified by
Section 298(2) may well be protected by Section 298(1 ), B
provided, of course, the impugned Bye-law can be justified
by-reference to the requirements of Section 298(1 )."
This rule of interpretation was again reiterated in Rohtak
Hissar District Electricity Supply Co. Ltd. Vs. State of Utter C
Pradesh and Ors. reported at Al R 1966 SC 14 71:
"18 .......... Section 15(1) confers wide powers on the
appropriate Government to make rules to carry out the
purposes of the Act; and s. 15(2) specifies some of the
matters enumerated by clauses (a) to (e), in respect of D
which rules may be framed. It is well-settled that the
enumeration of the particular matters by sub-s. (2) will not
control or limit the width of the power conferred on the
appropriate Government by sub-s. (1) of s. 15; and so, if
it appears that the item added by the appropriate E
Government has relation to conditions of employment, its
addition cannot be challenged as being invalid in law.
Whether or not such addition should be made, is a matter
for the appropriate Government to decide in its discretion.
The reasonableness of such addition cannot be F
questioned, because the power to decide which additions
should be made has been left by the Legislature to the
appropriate Government."
11. In view of the above position, it may be deduced that
the power to frame rules given under s. 97(1) of the Act is not G
controlled by 1he list mentioned in sub section (2) and the Lt.
Governor can make rules for any of the purposes of the Act. A
co-operative society may be defined as a voluntary association
of individuals combined to achieve an improvement in their
social and economic conditions through the common ownership H
A and democratic management of the instruments of wealth.
(Vide Row's Encyclopedia of Co-operative Societies Law in
India, Vol. 2, page 1) Experience has shown that voluntary
organizations like cooperative societies are the best system
which can suit the needs of poor and weaker sections. The
B object of a co-operative society is not to earn profits but to
enable the members to improve their economic conditions by
helping them in their pursuits. Thus, the cooperative societies
like the present one which seek to obtain the land at
concessional rate from the government and to build houses
c must necessarily have a limitation in that only members who
are in real need of houses should be permitted to become
members and to take the benefit of land allotment. In the garb
of a cooperative society, a person cannot be permitted to avoid
the stress of market prices and take a concessional advantage
0 in obtaining a plot. Thus Rule 25(2) does not in any manner go
beyond the ambit of rule making authority given under
Section 97(1) of the Act.
12. The learned counsel for the respondent-1 further
contended that the Rule 25 is not applicable to the respondent-
E 1 's case as the said rule is not retrospective and the alleged
'disqualification' of purchasing the said property had incurred
prior to the adoption of the Rules. We are of the considered
opinion that the aforesaid contention of the learned counsel for
the respondent-1 is misconceived. Merely because a person
F who had become a member of the society at a point of time
when the disqualification mentioned in Rule 25 was· not in
existence and because of the said rule would now cease to be
·a member of the society does not necessarily mean that the
said rule is retrospective. "A statute is not properly called a
G retrospective statute because a part of the requisites for its
action is drawn from a time precedent to its passing". (See
Graise on Statute Law. 17th edition page 386). Reference may
also be made to Queen v. Vina reported at (1875) 10 Q.B
195 wherein the Statute enacted that every person convicted
H of felony shall be for ever disqualified from selling spirits by
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 985
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
retail. It was held that the disqualification applied to. every A
convicted felon irrespective of whether he was so convicted
prior to or after the Act came into operation.
13. A reference may also be made to Re: Solicitors Clerk
reported at (1957) 3 AH. E.R. 617, wherein the bone of 8 contention revolved around that Solicitor's Act of 1956 which
provided that no solicitor should employ any person who is
convicted of larceny without the. permission of the Law Society.
The clerk in that case was convicted of larceny in 1953, while
the ban was imposed in 1956. It was urged that the provisions C
of the 1956 Act cannot be applied to him because he was
convicted before that Act came into operation. ''To do otherwise,
it was argued, would be to make its operation retrospective. In
rejecting this contention, Lord Goddard, C.J. observed:
"In my opinion, this Act is not in truth retrospective. It D
enables an order to be made disqualifying a person from
acting as a solicitor's clerk in the future and what
happened in the past as the cause or reason for the
making of the order; but the order has no retrospective
effect. It would be retrospective if the Act provided that E
anything done before the Act came into force or before
the order was made should be void or voidable, or if a
penalty were inflicted for having acted in this or any other
capacity before the Act came into force or before the order
was made. This Act simply enables a disqualification to F
be imposed for the future which in no way affects anything
done by the appellant in the past. Accordingly, in our
opinion the disciplinary committee had jurisdiction to
make the order complained of'
14. Same principle was applied in State of Maharashtra G
v. Vishnu Ramachandra reported at 1961 Cri L. J 450 where
Section 57 of the Bombay Police Act, 1951 authorised removal
of a person from an area if he has been convicted of certain
offences including theft. The Supreme Court held that
986 SUPREME counT REPORTS [2010] 13 (ADDL.) S.C.R.
"18. 'Section. 57 of the Bombay Police Act, 1951 does not
create a new offence nor makes punishable that which was
not an offence. It is designed to protect the public from the
activities of undesirable persons who have been convicted
of offences of a particular kind. The section only enables
the authorities to take note of their conviction and to put
them outside the area of their activities so that the Public
may be protected against a repetition of such
activities ........ .
18. An offender who has been punished may be restrained
in his acts and conduct by some legislation, which takes
notes of his antecedents, but so long as the action taken
against him is after the Act comes into force, the statute
cannot be said to be applied retrospectively."'
D 15. The most concrete cases wherein laws are made
retrospective are those in which the date of commencement is
earlier than enactment, or which validate some invalid law,
otherwise, every statute affects rights which would have been
in existence but for the statute and a statute does not become
E a retrospective one because a part of the requisition for its
action is drawn from a time antecedent to its passing. Applying
that to the present case, the conclusion is inescapable, that
Rule 25(2) is not retrospective. All that Rule 25(2) does is that
it operates in future, though the basis for taking action is the
F factum acquiring a plot in the past. Thus when by virtue of Rule
25(2), a member is deemed to have ceased to be a member
of the society, the cessation operates from April 2, 1973, when
the rules came into force.
Issue II
16. Coming to the second question of applicability of bye
laws, the same came into force on 3.10.1962. The eligibility
conditions for enrollment as a member of the society were
provided in chapter Ill of the said bye-laws. Bye-law No. 8 (vii)
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 987
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
which provides for cessation of membership is reproduced is A
reproduced herein under:
"8. A person ceases to be a member:
(vii) On undertaking the business of purchase and sale of
houses or land for construction of houses either directly or
indirectly or on purchasing a house or a plot of land for
construction of houses either in his own name or in name
of any of his dependants through any other source and the
member shall, within one month of his undertaking the said
business or purchase of a house or a plot of land shall
inform the society about this."
17. Perusal to above bye-law makes it clear that on
purchasing a house or a plot of land for construction of a house,
either in his own name or in name of any of his dependants,
disqualifies a member of the society to continue as one. Bye
laws of the society regulate the management of the society and
govern the relationship between society and members inter se.
They are of the nature of Articles of Association of a company
registered under the Companies Act. If they are consistent with
the Act and Rules, the members are bound by them. In
Zoroastrian Coop. Housing Society Ltd. v. District Registrar,
Coop. Societies (Urban), reported at (2005) 5 SCC 632, at
page 661 :
"36. if the relevant bye-law of a society places any
restriction on a person getting admitted to a cooperative
society, that bye-law would be operative against him and
no person, or aspiring member, can be heard to say that
he will not be bound by that law which prescribes a
qualification for his membership."
18. Bye-law 8(vii) was neither inconsistent with the Bombay
Cooperative Societies Act, 1925 under which the appellant
society was governed nor was it contrary to Delhi Cooperative
Societies Act, 1972 and the Rules framed thereunder.
A Therefore, a member of the society who acted in violation of
the said bye law was liable to have his or her membership
removed from the appellant-society.
19. However, the learned counsel for the Respondent-1
8 contended that the appellant-society never communicated to the
Respondent-1, as to violation of bye law 8(vii). No
correspondence made by the appellant-society to the
respondent 1 mentioned the said bye law 8(vii), but mentioned
only the violation of bye law S(i;{e) and Rule 25 wherein bye
C law 5(i){e) prescribes to be member of the society and is not
applicable to the person who has already become member
before the adoption of the bye laws. Further, the learned
counsel for the respondent-1 contended that during the
adjudication of the Writ Petition, the appellant never raised the
ground of the violation of bye law 8 (vii) and even the Special
D Leave Petition filed by the appellant does not mention the said
bye law 8(vii) either in list of dates or in the Question of Law or
in Grounds. It was only for the first time on 22.09.10 during the
course of oral arguments the learned counsel for the appellant
raised the said violation as a surprise. On further investigation
E apart from the fact that the alleged 1962 bye laws were not part
of the High Court file and the copy of the bye laws relied upon,
it was contended, appears to be fabricated.
20. If we accept the above contention of respondent-1 and .
F keep aside the alleged bye law 8(vii) from our consideration,
bye law S(i)(e) still remains to be considered, the existence of
which is also not in doubt. The violation of said bye law 5(i)(e)
was also communicated to the respondent-1 by show cause
notice dated 24.1.1978 and also raised as a ground in the writ
G petition before the High Court and in the SLP filed before this
Court. The said bye law 5(i){e) is produced hereinunder:
"5(i) Any person shall be eligible to be a member of the
society, provided;
H (e) he or his wife (she or her husband incase of a woman)
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 989
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
or any of his/her dependents does not own a dwelling A
house or a plot for building a house in Delhi;"
21. The question for our consideration is what is the
meaning of the expression "eligible to be a member" used in
the 1962 bye law No. 5(i)(e). The verb "be" has two meanings,
namely, (a) to exist, and (b) to become. The former refers to
the existence of state of affairs in present while the latter refers
to the coming into existence of a new state of affairs. It is argued
for the respondent-1 that the 1962 bye-law No. 5(i)(e) refers
only to the eligibility of a person to become a member. On the C
contrary, the respondents have urged that even a person who
is already a member ceases to be eligible to continue as a
member if he does not satisfy bye-law 5(i)(e). That is to say, if
a person after becoming a member of the society purchased
a dwelling house in Delhi, then he is not eligible to be a member
in the sense that he is not eligible to continue to be a member D
of the society under the said bye-laws. As against the
contention of the respondent-1 that bye-law 5(i)(e) does not
apply to existing members, it may be pointed out that in
Article 102(1) of the Constitution also the word "be" is used in
the sense of "exist" as contrasted to "become". Under
Article 102(1) a person is disqualified for "being chosen as" and
also for "being a member of either Houses of parliament" etc.
The dichotomy there is between becoming a member and
continuing to be a member of parliament. It is therefore, to be
1 concluded that even under the 1962 bye-law No. 5(i) (e) the
· respondent-1 were disabled from continuing to be members of
the society.
Issue Ill
22. The next argument for the learned counsel for the G
respondent-1 was that the said property was purchased in the
name of HUF and not by respondent-1 in his personal capacity.
Whereas the learned counsel for the appellant contended that
the Rule 25 is applicable to the respondent-1 irrespective of
A the fact that the said property is purchased in the name of HUF.
We have considered these arguments in the light of the Rule
25. Sub-rule (1 )(c)(i) of the rule 25 provides an exception in
case of persons who are only co-sharers in the joint family
property, in that disqualification of membership as laid down
B in sub-rule (l)(c)(i) shall not be applicable in case of co-sharers
of property whose share is less than 66.72 sq. m. (80 yds) of
land. In the present case, the said property is admeasuring
1080 yds and there are 3 co-sharers of the property, i.e.
respondent-1 and his two children, (after the death of wife) and
c the share of the respondent-1 would be more than the
prescribed limit. In this regard, the aforesaid exception is not
applicable to the respondent-1 's case. There is one more
angle, which was specifically placed before us and requires our
consideration. A perpetual lease deed with respect to the land
D allotted to the appellant society was executed on 06.04.1978
by the President of India through the Delhi Administration. A
copy of the said perpetual lease deed executed with the
appellant society is placed on record. Our specific attention
was drawn to clause No. 5 (a) of the said lease deed, which
reads as follows: E
"5(a). The lease shall sublease within one year from the
date of execution of these present, such time and on such
premium and yearly rent as may be fixed by the lessor, one
residential plot to each of its members who or whose wife/
F husband or any of his/her dependent relatives including
unmarried children does not own, in full or in part, on
freehold or leasehold bases, any residential plot or house
in the urban areas of Delhi, New Delhi or Delhi
cantonment, and who may be approved by the chief
G commissioner."
The appellant society was, therefore, under an obligation
not to allot a residential plot to a person, who was owning a
property in the city of Delhi. Therefore, as per terms of allotment
of the land to the appellant it was obligatory for the society not
ISHWAR NAGAR COOP.HOUSE BUILDING SOCIETY v. 991
PARMA NANO SHARMA [DR. MUKUNDAKAM SHARMA, J.]
to allot plots of land to such persons who own any residential A
property either in their own name or in the name of their family
member. When the Hindu Undivided Family of the respondent
consists only of his own family members, namely, his wife, son
and the daughter and therefore obviously ownership of the said
property by the Hindu Undivided Family of the respondent is B
ownership of property by the family members and consequently
the same would ~!early fall within the prohibition and bar of
allotment as contained in clause No. 5 (a) of the lease deed.
Issue IV
23. The last submission made by respondent-1 is that the
said property is being used only for the purpose of running a
nursing home, i.e., for a commercial and not residential
purpose. The learned counsel for the appellant-society refuted
the same contending that the nursing home was located only D
on the ground floor of the property and the other floors are being
used for residential purpose and the same appears from the
various correspondences and affidavits made by the
respondent-1 wherein he has shown the said property as his
residence. In light of Rule 25, the action of the appellant-society E
would be justified if the said property is found to be residential
house in the light of documents on record. The mere fact that
the respondent-1 has shown in affidavits and correspondences
the said property as his address doesn't prove that the property
is a residential house as being a doctor running a nursing home,
he had to remain invariably in his workplace for very long hours.
However, the Annexure P-12 and P-13 are respectively self
assessment property tax forms filled by the respondent-1 with
respect to the said property and an objection letter written by
the respondent-1 against the assessment notice issued by the G
Municipal Corporation with respect to the said property. In
Annexure P-12, while assessing the tax of the property, the
respondent-1 has shown the property as used for residential
and self-occupied purpose only. In Annexure P-13, the
respondent-1 opposed the assessable value shown in the H
A assessment notice on the ground that the building on the said
plot is a new constructed building and is under self-occupation
for residence and self professional-medical work only and is a
single-unit house. The respondent for the purpose of being
member of the appellant-society cannot claim the said property
B used purely for commercial purpose when he himself claimed
the said property being used for residential purpose also. It
should also be indicated that the aforesaid information about
the nature and status of his property in Kailash Colony were
furnished by the respondent under his own declaration a.nd by
c certifying that the said particulars filled in the form are true and
correct to the best of his knowledge. The respondent No. 1 has
also appended his signature to the said declaration by signing
it on 27/06/2006. These informations are relevant and material
to come the conclusions that the aforesaid property in Kailash
0 Colony was also used as a residential property and therefore
tfle contention of the counsel for the respondent no. 1 that it is
exclusively a commercial property cannot be accepted.
24. We have considered the facts and circumstances of
the case, and analysed the arguments put forth by both parties
E to buttress their stand. For the reasons that we have considered
herein and mentioned above, we find that the arguments raised
by respondent-1 are without merit, and the appeal therefore,
is to be allowed.
D.G. Appeals allowed.