DELHI DEVELOPMENT AUTHORITY versus BANKMENS CO-OPERATIVE GROUP HOUSING SOCIETY LTD. & ORS.

Citation: [2017] 6 S.C.R. 616 · Decided: 17-04-2017 · Supreme Court of India · Bench: PINAKI CHANDRA GHOSE · Disposal: Disposed off

Judgment (excerpt)

A 
B 
c 
[2017] 6 S.C.R. 616 
DELHIDEVELOPMENT AUTHORITY 
v. 
BANK.MENS CO-OPERATIVE GROUP HOUSING 
SOCIETY LTD. & ORS. 
(Civil Appeal No. 6805 of2013) 
APRIL 17,2017 
[PINAKI CHANDRA GHOSE AND 
DEEPAK GUPTA, JJ.] 
Co-operative Societies - Two Co-operative Housing Societies 
(CGHS) 'B' and 'S' placed under liquidation for not complying with 
directions of Registrar of Co-operative Societies (RCS) - Revival 
applications for revival of both the societies filed by persons not 
concerned with the societies - List of members of 'B' approved for 
allotment of land by appellant-DDA - Though the land was allotted 
D provisionally by DDA but was not handed over to 'B ' - Writ petition 
by 'B' seeking direction to DDA to allot land to 'B ' - Writ allowed -
LPA by DDA, disposed of directing verification of members either 
by DDA or RCS and thereafter possession of land be handed over 
to 'B' - Direction not complied with by DDA as 'B :S records were 
E with CBI in view of direction by High Court in relation to another 
CGHS wherein CBI stated that chargesheets have been filed against 
some office bearers of 'B' as well as 'S' - Another writ petition by 
'B 'praying for directions to DDA to handover possession of the 
plot pursuant to directions in aforesaid LPA - High Court directed 
F 
DDA to process B :S case for allotment - Further, in case of 'S' also 
land provisionally allotted but not handed over - Writ petition by 
'S', disposed of by High Court directing possession of allotted plot 
to 'S' - Plea of appellant that revival of societies was a fraudulent 
act and that the memberships of the societies were not genuine -
On appeal, held: It is more than apparent that the builder mafia 
G was instrumental in getting the societies revived -After investigation 
by CBI, triable cases have been made out against the office bearers 
of both 'B' and 'S' and some officials of RCS - The move of revival 
of both the Societies was started by persons who were not even 
members or promoters of the original society- Thus, the very revival 
of the -Societies was illegal and the memberships are not genuine -
H 
616 
DELHI DEVELOPMENT AUTHORITY v. BANKMENS CO- . 
617 
OPERATIVE GROUP HOUSING SOCIETY 
However, there may be some members of the Societies who have 
A 
been duped by the promoters - DDA directed to refund the money 
deposited to the Societies along with interest @10% p.a w.e.f the 
date when the money was deposited with the DDA - Societies in 
turn to return the amount so deposited by the members along with 
interest to obviate the hardships of genuine members. 
B 
Disposing of the appeals, the Court 
HELD: 1.1 It is more than apparent that the builder mafia 
was instrumental in getting the societies revived. The CBI 
conducted investigation on the directions of the High Court. After 
investigation, triable cases have been made out against the office c 
bearers of both 'B' and 'S' and some officials of the RCS. In case 
of 'S', an inquiry was conducted on the directions given by the 
High Court and in that inquiry it was found that the memberships 
were not genuine. But that report has been brushed aside by the 
High Court, only on the ground that this case was covered b.Y 
case of another CGHS. The facts of these cases are totally D 
different from the facts of the case relied on by the High Court. 
(Para 15) (628-D-F] 
1.2 In the present case, the move for revival of both the 
Societies was started by persons who were not even members or 
promoters of the original society. There is nothing on record to 
E 
show how these persons were entitled to file the application for 
revival. The revival of societies was funded by the builders. The 
original members have all vanished into thin air. There is no 
explanation as to how they resigned and who accepted their 
resignations. Both the Societies were put under liquidation 
F 
because they could not furnish some information to the Office of 
the RCS. There is not even a plea that when the revival was 
done the RCS was satisfied that the reasons for which the 
Societies were liquidated no longer existed. Therefore, the very 
revival of the Societies is illegal and when the foundation falls 
the edifice which has been developed on the foundation must G 
go.(Para 16) [629-A-D] 
1.3 The revival of the Societies was illegal. It was 
manipulated by persons who had no connection with the Societies. 
The builder mafia had a big hand in getting the Societies revived. 
H 
' 
618 
SUPREME COURT 

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