Supreme Court Directs Inquiry in Housing Society Land Dispute Case

The Supreme Court of India, in its judgment dated April 16, 2019, ruled on a long-standing land dispute involving the Adarsh Colony Cooperative House Building Society Ltd. and its founder member, Nisha Singla. The case concerned the allotment of residential plots in Ludhiana, Punjab, where the appellant claimed denial of possession despite being a legitimate member of the society since 1975. The Supreme Court directed an inquiry by the Registrar of Cooperative Societies, Punjab, to determine whether the appellant was wrongfully denied possession of her plot.

Background of the Case

The dispute originated in 1981 when the Society approached the Punjab Government to safeguard its land from being acquired by the Ludhiana Improvement Trust. The government approved the Society’s request, allowing members to retain their plots, provided they were members until 1982. In 1983, the Society was allotted 281 plots in Bhai Randhir Singh Nagar, Ludhiana.

The appellant, Nisha Singla, claimed to be a founding member who had made all necessary deposits for the allotment of a 250-square-yard plot. However, she was later denied possession, leading to multiple rounds of litigation.

Key Timeline of Events

• 1975-1982: The appellant deposits money for a residential plot in the Society.
• 1983: The Punjab Government allows the Society to retain land for members registered until 1982.
• 1984: The Administrator of the Society makes arbitrary plot allotments without a proper process.
• July 17, 1984: The Deputy Registrar of Cooperative Societies cancels these allotments due to irregularities.
• 1985-1988: Higher authorities uphold the Deputy Registrar’s cancellation.
• 1993: The Society conducts fresh allotments; the appellant accepts a 250-yard plot while reserving the right for a larger one.
• 2002-2011: The appellant’s legal challenges are dismissed at multiple levels, including the Punjab and Haryana High Court.
• 2019: The Supreme Court reopens the case, directing an inquiry.

Arguments by the Appellant

• The appellant claimed she had been an original member of the Society since 1975 and had made all necessary payments.
• She argued that despite being allotted a plot, possession was never handed over.
• The appellant contended that she had been unfairly denied a 500-square-yard plot but later agreed to a 250-square-yard plot.
• She alleged that her allotted plot was wrongfully given to Ashish Gupta, son of T.R. Gupta, a former Honorary Secretary of the Society.

Arguments by the Respondents (Adarsh Colony Cooperative House Building Society Ltd.)

• The Society claimed that the appellant had been allotted a 250-yard plot, which she had accepted.
• The respondents argued that she had never raised objections to her allotted plot until much later.
• They stated that financial contributions made by members determined the size of plots, and since she had not made additional deposits, she was not entitled to a larger plot.

Supreme Court’s Observations

• The Court found that the appellant’s possession had never been clearly established.
• It observed that the Deputy Registrar’s 1984 order, which canceled the arbitrary allotments, had attained finality.
• The Court criticized the Society’s inconsistent approach in handling member allotments and found merit in the appellant’s grievance.
• To resolve the issue fairly, the Court directed an independent inquiry by the Registrar of Cooperative Societies, Punjab.

Final Judgment

• The Supreme Court remanded the case for an inquiry.
• The Registrar of Cooperative Societies, Punjab, was tasked with verifying:
• Whether the appellant was originally allotted a plot by the Society.
• Whether the allotment was later canceled or unlawfully transferred to another person.
• Whether a suitable alternative plot could be allotted if her original plot was no longer available.
• The Registrar was directed to complete the inquiry and submit a report within four months.

Legal Implications

• This judgment reinforces the importance of proper documentation in cooperative housing societies.
• It highlights the need for a fair and transparent allotment process in cooperative societies.
• The ruling ensures that founding members of cooperative societies are not deprived of their rightful allotments.
• The case sets a precedent for similar disputes where original allotments are later challenged or manipulated.

Conclusion

The Supreme Court’s ruling in this case provides relief to a founding member who had been fighting for her rightful possession for decades. By directing an independent inquiry, the Court ensures that justice is delivered based on factual findings rather than procedural technicalities. The judgment upholds the principles of fairness and transparency in cooperative housing society matters, setting a strong precedent for future cases.

Petitioner Name: Nisha Singla.
Respondent Name: Adarsh Colony Cooperative House Building Society Ltd. & Ors..
Judgment By: Justice Dhananjaya Y. Chandrachud, Justice Hemant Gupta.
Place Of Incident: Ludhiana, Punjab.
Judgment Date: 16-04-2019.

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