Telangana High Court
Dantuluri Venakatapathi Raju vs State Of Telangana, on 22 March, 2024
Author: Nagesh Bheemapaka
Bench: Nagesh Bheemapaka
HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA
WRIT PETITION No. 31755 OF 2023
ORDER:
The present Writ petition is filed challenging the Certificate of Registration (Reg. No. TS/MLKG/MACS/2023- 78/FOW & M dated 30.09.2023) issued by the 3rd respondent under Section 5 of the Telangana Mutually Aided Co-operative Societies Act, 1995, in favor of Respondent No. 4 as illegal, arbitrary, and violative of Articles 14, 19, and 21 of the Constitution of India.
2. Petitioners claim to be the residents of Swaranandhra Colony Phase-1, a residential complex consisting of villas developed by the builder in 1998-2003. The colony falls under the maintenance of Greater Hyderabad Municipal Corporation. In 2016, the residents of Swaranandhra Colony Phase-1 formed 'Swarnandhra Colony Residents Welfare Society, Yapral' with Registration No. 482/2016.
While so, two years ago, when certain members formed a Management Committee without adhering to proper procedures, these members began harassing others who opposed their actions, including petitioners. Despite objections from some members, a faction within the colony decided to register a new society under the Telangana Mutually Aided Co- 2 operative Societies Act, 1995, ignoring the existence of previously registered society. Petitioners, along with other members, therefore, submitted representation dated 27.09.2023 to the 3rd respondent opposing registration of new society under the Telangana Mutually Aided Co-operative Societies Act, 1995, highlighting the ongoing existence of Swarnandhra Colony Residents Welfare Society, Yapral. However, the 3rd respondent proceeded to issue the impugned Certificate of Registration certifying registration of a Society named "Golf View Paradise Swarnandhra Colony Phase-1 Owners Mutually Aided Co- operative Maintenance Society," limiting its area of operation to the confines of Yapral.
3. This Court by order dated 07.12.2023 ordered interim suspension of certificate of registration dated 30.09.2023 issued by the 3rd respondent till 21.12.2023 and the said order was extended from time to time.
4. In the counter-affidavit filed on behalf of the 4th respondent, it is stated that registration in favor of the 4th respondent was conducted following due legal procedures by the 3rd respondent. It is stated that petitioners are members of the society which was registered as "Swarnandhra Colony Welfare Society", Yapral, and the said society was functioning smoothly, but when the society executive committee approached the 3 District Registrar for submitting the year audit record pertaining to the society, wherein the authority had refused the same on the following ground:
"The Registration or amendment of apartment/Villas/Plot Owners related societies which consists of maintenance charges cannot be registered in this office, as per the judgement of High Court with W.P.No.3319 of 2013 and C & IG Circular Memo No.Soc/7124/2018 This respondent maintains that the decision to re- register under the Telangana Mutually Co-Operative Aided Society was lawful and necessary due to prevailing circumstances. All legal procedures were meticulously followed, resulting in the Society's registration on 30.09.2023, under the name "Golf View Paradise Swarnandhra Colony Phase 1 Owners Mutually Aided Cooperative Maintenance Society'. The society denies any illegality and emphasizes that registration was conducted in compliance with law. The respondent highlights that the society was registered before the writ petition was filed on 15.11.2023 and the prefix 'Golf View Paradise' was added for clarity based on the layout mentioned in members' sale deeds. The Society refutes the claim that one-third of its members oppose joining the Society registered under the Telangana Mutually Co-Operative Aided Society. It is asserted that a General Body Meeting convened on 08.01.2023 garnered significant support, with 67 house owners out of 111 providing 4 consent for registration under the new Society, as evidenced by accompanying documentation. Denying the accusation of usurping society deposit amounts, it is asserted that the Executive Committee maintains comprehensive expenditure records, subject to annual audit reports accessible to all members. Additionally, the Society highlights that petitioners, in an attempt to harass the Society and its members, registered with another society under the Telangana Societies Act, 2001, using forged documents following an interim order dated 23.11.2023. The respondent emphasizes availability of an efficacious alternative remedy as per Section 37(1) of the Telangana Mutually Aided Co-Operative Societies Act, rendering the present writ petition legally unsustainable. It asserts that petitioners, who have defaulted on regular maintenance payments, filed the petition on false grounds after their maintenance arrears were questioned by the Society. It is stated that petitioners approached this Court by concealing material facts and obtained an interim order, thereby stalling the society's day-to-day operations. Only 17 out of 93 members are attempting to disrupt the society's tranquility by resorting to litigation. It is argued that if any member has grievances, they should seek redressal through proper channel rather than approaching the Court.5
5. Sri Baglekar Akash Kumar, learned counsel for petitioner submits that issuance of impugned Certificate of Registration under the Telangana Mutually Aided Co-operative Societies Act, 1995 for a colony already registered under the Telangana Societies Registration Act, 2001, is deemed arbitrary and illegal. Such dual registration is argued to be untenable as it contravenes legal principles dictating that an entity cannot operate under two distinct statutes simultaneously. According to learned counsel, despite the representation dated 27.09.2023, wherein nearly one-third of the existing society members expressed unwillingness to join the new society, Respondent No. 3 proceeded to issue the impugned Certificate of Registration dated 30.09.2023. It is argued that the society registered under the Telangana Societies Registration Act, 2001, maintains a bank account (No. 000000035261018024) with the State Bank of India, Yapral Branch, with a substantial fixed deposit of Rs. 16,80,788/-. This sum, collected from maintenance contributions of all society members, is at risk of misappropriation by the newly registered society's board of directors.
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6. Heard learned Government Pleader for Cooperation.
7. Perused the record. This Court is not concerned with the disputes between the members and the competent authority will decide the same. Under Section 37(1), if any dispute arises touching the constitution, management or business of a Co-operative Society and matters connected therewith or incidental thereto among members, past members or persons claiming through members, past members and deceased members; such disputes shall be referred to the Registrar for decision. An appeal on the decision of the Registrar vests with the Co-operative Tribunal. This Court in Vasathi Housing Limited v. Government of Telangana 1 in similar circumstances, held that this Court is not inclined to go into the issue of deciding the registration and accordingly, disposed of the Writ Petition giving liberty to petitioner to avail appropriate remedies, if any.
8. In view of the settled legal position, this Writ Petition is also disposed of leaving liberty to petitioner to avail the remedy under Section 37(1) of the Telangana Mutually Aided Cooperative Societies Act, 1995. No costs.
1 2023 SCC On Line TS 471 7
9. Consequently, the miscellaneous Applications, if any shall stand closed.
-------------------------------------- NAGESH BHEEMAPAKA, J 22nd March 2024 ksld