Delhi High Court - Orders
Jamia Cooperative Bank Ltd vs Syed Mohd. Noor Ullah on 19 August, 2025
$-17
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 8927/2023
JAMIA COOPERATIVE BANK LTD. .....Petitioner
Through: Mr. Tarique Siddiqui, Mr.
Abhishek K. Tanwar, Mr. Rakshan
Ahmed, Ms. Lakshmi and Mr.
Anirudh Sharma, Advs.
versus
SYED MOHD. NOOR ULLAH .....Respondent
Through: Mr. Sanjay Tripathi, Adv.
CORAM:
HON'BLE MR. JUSTICE NITIN WASUDEO SAMBRE
HON'BLE MR. JUSTICE ANISH DAYAL
ORDER
% 19.08.2025
CM APPL. 33829/2023 (stay)
1. This application has been filed seeking stay of impugned order 05th April 2023 passed in Appeal No.055/2022/DCT.
2. The challenge in the petition is to the order dated 05th April 2023 passed by the Delhi Co-operative Tribunal ('DCT') in Appeal No.055/2022/DCT titled "Syed Mohd. Noor Ullah Vs. Jamia Cooperative Bank Ltd" and the order dated 17th August 2021 passed by Additional Registrar Co-operative Society ('Addl. RCS') in exercise of powers under Section 40 of Delhi Co-operative Societies Act, 2003 ('DCS Act').
3. Facts necessary for passing the present interim order are that petitioner, a co-operative bank, is functioning under the supervision of Reserve Bank of India. As on 31st March 2022, the business of the Bank had crossed around Rs. 350 crores.
This is a digitally signed order.
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4. Present respondent is a member of the said Bank and had unsuccessfully contested the elections for the Managing Committee. Petitioner-Bank invoked the provisions of Section 40 of DCS Act against respondent seeking approval for expulsion of the respondent, on the ground that he is in the habit of filing false complaint against the Bank, which has not only led to bringing disrepute to the Bank but also such conduct was detrimental to the interest and the working of the Co- operative Bank.
5. Decision taken by petitioner was subject to approval under Section 40 of the DCS Act. Accordingly, petitioner-Bank passed a resolution expelling the respondent under Section 40 and the same was subjected to approval.
6. Addl. RCS vide order dated 17th August 2021, refused to accord approval. This prompted petitioner to take out proceedings under Section 115 of DCS Act, seeking review of the aforesaid order. It appears that the Special Registrar of Co-operative Societies thereafter in exercise of powers under Section 115, accorded approval for the expulsion of respondent vide its order dated 26th April 2022.
7. Respondent, feeling aggrieved, approached the DCT questioning the aforesaid order, and Tribunal set aside the aforesaid order on the ground that the authority has exceeded the review jurisdiction conferred under Section 115 of the DCS Act.
8. Learned counsel for petitioner has invited our attention not only to proviso to section 40, wherein the procedure is prescribed, but also to the mandate provided under Section 115, wherein short guidelines are laid down for the exercise of review jurisdiction. It is contended that the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/08/2025 at 22:17:18 authority, while exercising review jurisdiction, is required to be sensitive to the proviso to Section 40 and also to the scope of section 115 of DCS Act.
9. It is claimed that the order impugned dated 05th April 2023 passed by the DCT, has been made in ignorance of the aforesaid provisions and as such is liable to be stayed.
10. It is further brought to our notice that false complaints filed by respondent to the various authorities has resulted into causing not only inspection, but also special audit, which has resulted into incurring expenses at the cost of members of the society, for which the respondent is solely to be blamed.
11. It is further urged that even during the inspection or the special audit hardly any default was noticed on the part of petitioner or that of office bearers of the petitioner-Bank.
12. It is claimed that respondent is in habit of filing false complaints and spreading false propaganda about the functioning of the bank so as to jeopardize the interests of the depositors and account holders. Such conduct is required to be viewed as 'bringing disrepute to the bank' and also 'acting in detriment to the interest of society'.
13. It is urged that rightly so while exercising the powers under Section 115 of DCS Act, Special Registrar of Co-operative Societies has taken the aforesaid conduct of respondent into account, while granting approval to the expulsion.
14. As against above, counsel for respondent submits that the scope of the review under Section 115 is required to be considered and was rightly so appreciated by DCT. According to him, all the steps taken by This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/08/2025 at 22:17:18 respondent in the capacity of the member of the Bank are in the interest of the depositors and the proper functioning of the Bank in tune with the co- operative movement to be promoted. It is further submitted that since the Bank was conducting itself de hors the principles of democratic setup, respondent was entitled to seek inspections and audits.
15. It is claimed that respondent's conduct in any case cannot be viewed as bringing disrepute or that of jeopardizing the interest of the Bank. As such, he urges that petitioner is not entitled for interim relief.
16. We have considered the submissions at this stage.
17. Prima facie, we are satisfied that respondent, after having unsuccessfully contested the election of the Managing Committee of petitioner-Bank, has indulged in a personal vendetta against the office bearers and the Bank itself by filing false complaints, which led to inspection and inquiry. The same did not yield any ill-intention on the part of petitioner therefore reflecting sufficiently on respondent's conduct being motivated by malice and targeted with an intention to bring disrepute to the bank.
18. It appears that such conduct, prima facie, can be viewed as detrimental to the interest of depositors and account holders. In such eventuality, having regard to the scheme of Section 40 of DCS Act, particularly its proviso, and the mandate provided under Section 115 of the DCS Act, we are of the view the impugned order passed by the DCT on 05th April 2023 in Appeal No.055/2022/DCT is liable to be stayed, and it is accordingly stayed.
19. The application is allowed and stands disposed of accordingly.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/08/2025 at 22:17:18 W.P.(C) 8927/2023
20. In view of the above, order 17th August 2021 granting approval to expulsion of respondent as a member of petitioner-Bank shall hold the field.
21. We hereby clarify that we have given an option to respondent to give a full stop to the present matter by furnishing an undertaking to this Court that he is apologetic towards his conduct qua petitioner-Bank and shall also to bear some cost.
22. Counsel for respondent, on instructions, has stated that respondent is willing to give an undertaking; however, he is not willing to bear the cost. The Bank has already incurred cost of more than Rs.2 lakhs in meeting various false charges, which were levelled against it, which led to the conduct of an inspection and special audit.
23. Rule (DB).
24. Issue notice.
25. Mr. Sanjay Tripathi, Adv. accepts notice on behalf of the respondent.
26. Every endeavor to hear the rule expeditiously shall be made.
27. A copy of this order be uploaded on the website of this Court forthwith.
NITIN WASUDEO SAMBRE, J ANISH DAYAL, J AUGUST 19, 2025/sky/bp This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/08/2025 at 22:17:18