In a significant legal development, the Supreme Court of India delivered a judgement on the construction dispute between Modern Cooperative Society and the alleged contemnors. The case involved a complex situation regarding the construction of a new building, possession issues, and compliance with court orders. Learn more about how the court resolved the dispute in favor of the society and the subsequent implications for all parties involved.
Facts
- The Modern Cooperative Group Housing Society Limited, with an approved strength of 211 members, expelled 27 members including the alleged contemnors in a General Body Meeting held on 27.12.1987.
- Special leave petitioners had filed undertakings on 13.04.2017 to vacate the apartments they were occupying.
- An affidavit by the Administrator of the Society was filed on 07.01.2019, enclosing an architect’s report suggesting the construction of a new tower with 18 apartments.
- Proposal to construct a new building was voted against by 43 members and in favor by 30 members of the Society.
- A notice was issued on 04.08.2017 followed by an order on 25.01.2018 to maintain status quo.
- Alleged contemnors argued that they had paid all instalments, had been occupying the apartments for several years, and the construction was funded by deposits of all members including them.
- There was a suggestion to explore the possibility of constructing another building on the society’s land to accommodate the alleged contemnors.
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Arguments
- Mr. S. D. Singh suggested that if the contempt petitioners were guaranteed possession of apartments, they would not object to the construction of a new building by the society.
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Analysis
- The alleged contemnors have violated court orders and failed to vacate the apartments despite undertakings.
- The society has funds exceeding Rs. 4 crores due to contributions from alleged contemnors and contempt petitioners.
- Architect report suggests construction of a new building with 18 apartments, even after meeting alleged contemnors’ requirements.
- Meetings were held with the Administrator to discuss possession issues in light of Supreme Court orders.
- Registrar Cooperative Societies found that 13 out of 14 claimants deposited the required amount, except one.
- General Body meeting held with 73 members, excluding alleged contemnors, to discuss the new construction proposal.
- Municipal Corporation of Delhi (North) to provide response on the feasibility of constructing a new tower within permissible limits.
- Parking requirements and technical details of construction need to be considered before proceeding with the project.
- To be re-admitted as a Member, a person must deposit the determined amount and furnish an affidavit.
- Once the deposit is made and affidavit is submitted, the person will be re-admitted in the Society as a Member.
- The alleged contemnors have made their contributions to the society
- Society has more than Rs.4 crores available in funds
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Decision
- The Contempt Petitions have been disposed of by the Court.
- A fresh draw of lots will be conducted in the presence of an Official from the Office of the Registrar, Cooperative Societies to allot 18 apartments, including to the alleged contemnors.
- Alleged contemnors must find new or transit accommodation until they are finally allotted the apartments after construction, at their own cost and charges.
- The cost of construction for the new building to be entirely borne by the allottees, with a decision to be made by the society on possible contributions.
- Orders from previous RCS orders and applications were mentioned and actions were taken accordingly.
- All alleged contemnors to vacate their respective apartments by a specified date.
- Administrator to seek permission to erect a new building with 18 apartments within one month.
- Directions for the completion of construction, initiation of new member admissions, and allocation of vacated apartments were issued.
- Municipal Corporation of Delhi’s approval in principle for the construction of a new building was discussed.
- The matter was considered in contempt jurisdiction, with directions passed for the alleged contemnors’ vacation of apartments by a given deadline.
Case Title: SANT LAL GUPTA Vs. UMESH KUMAR JAIN
Case Number: CONMT.PET.(C) No.-001505-001506 / 2017