SUPREME COURT OF INDIA
A. Jitendernath
Vs
Jubilee Hills Cooperative House Building Society and Another
Civil Appeal Nos. 306-307 of 2005
(S. B. Sinha and P. P. Naolekar, JJ)
02.05.2006
S. B. SINHA, J.
1. These appeals are directed against judgments and orders dated 13.11.2001 and
22.4.2002 passed by the High Court of Andhra Pradesh in Civil Revision Petition
No. 283 of 2000 and Civil Miscellaneous Petition No. 7763 of 2002 respectively.
2. Jubilee Hills Cooperative House Building Society Limited, Hyderabad is a
Society registered under the Andhra Pradesh Cooperative Societies Act, 1964. It
had enrolled a large number of members. The father of the one Shri Anne
Srinivas and the mother of the Appellant, Mrs. A. Annapurna Devi, herein were
members of the said Society.
3. From a perusal of the bye-laws framed by the said Society, it appears that
it intended to allot one plot to the family of the member concerned. The
bye-laws contain provisions for nomination.
4. Bye-laws 19 to 22 which are relevant for our purpose read as under:
"19. every member may be declaration attested by two witnesses nominate a
person or persons to whom his share or interest, shall be paid or transferred
on his death. A nominee may be changed by filing a fresh declaration with the
Secretary. In the absence of any nomination the amount of his share or interest
shall be paid or transferred to such person as may appear to the Managing
Committee to be legally entitled. In case of any doubt the Managing Committee
shall call for a succession certificate and act in accordance therewith. All
amounts payable to a minor shall be paid to him through his guardian.
20. The Society shall keep a Book wherein the names of all persons so nominated
and all revocation or variation (if any) of such nomination shall be recorded
within fifteen days.
21. All shares transferred by virtue of a nomination or by him or by legal
transfer shall be transferred to the nominee or heir on his becoming a member.
He shall not, however, be entitled to withdraw any such share on account of
such transfer.
22. The nominee of a deceased member shall be made a member provided he fulfils
the qualifications of membership."
5. The mother of the Appellant herein expired on 15.8.1977. It was not notified
to the Society. A plot bearing No. 39 in Phase III in Jubilee Hills admeasuring
600 sq. yards was allotted in her favour. On or about 5.11.1981, a notice was
circulated to the members of the society that allotment of plots would be done
by way of draw of lots. A copy of the said notice was also sent to Mrs. A
Annapurna Devi (since deceased). Plot No. 39 was allotted in her favour on a
provisional basis by the society on 20th June, 1982. She was called upon to pay
a sum of Rs. 4, 003.90 within one month from the date of receipt thereof.
However, as no payment was made within the stipulated period, on or about
30.9.1982, a letter was issued granting final extension of time up to
30.11.1982 to make payment. It was categorically stated therein that the
provisional allotment would be cancelled and no representation in that behalf
shall be entertained if no payment is made on or before 30.11.1982 for
confirmation of provisional allotment of the said plot. The said amount
admittedly was not paid evidently because in the meantime the mother of the
Appellant had expired.
6. Shri Anne Srinivas was admitted as a member of the Society on 6.8.1983 in
place of his father who was a member of the Society. Indisputably, on
16.9.1983, plot No. 39 was allotted in his favour.
7.The Appellant on behalf of her mother wrote a letter on 16.3.1985 to the
First Respondent herein for allotment of site in respect of membership No. 1646
stating:
"Sub: Allotment of site for Membership 1646.
I request you kindly allot me a site in lieu of my plot No. 39 in phase 3 which
has been given to someone else.
I had to pay to the society around Rs. 4, 000/-, I am ready to pay the above
amount immediately and start construction of the house if you would kindly
allot me a suitable plot nearby.
The plot 39 in phase 3 which was allotted to me was given to some one else. I
was not in Hyderabad for more than 2V2 years and in correspondence from you was
received by me.
When I came to the office to find out about my plot no. 39, 1 was told that the
same has been allotted to some one else. There has been a confusion and I had
not received any of your letters. I would be even grateful to you if you
consider my case and allot me a suitable site to construction of the house
immediately.
Thanking you,
Yours faithfully, For A. Anapoornamma
Son. A. Jithender Nath"
[Emphasis supplied]
8. In response to the said letter, the allottee was informed that due to non
payment of development charges, the said allotment had been cancelled. By a
letter dated 21.6.1985, the Appellant informed the Society about the death of
her mother and sought membership of the Society by way of transfer.
9. On 18.3.1986, he made a representation for allotment of a new plot stating :
"I received your letter dated 20-9-1985. In this regard, I would like to
inform you, that I have already submitted an affidavit duly notarized, and a
death certificate of my mother Late Smt. A. Annapurnamma. Now, I enclose the
original Affidavit No. 13820 dated 21-6-85, which is duly signed by gazetted
officer.
I request you to kindly transfer the membership to my name and please allot a
new plot to me, I am ready to pay any balance due amount and I am also ready to
built a house immediately."
10. Respondent No. 1 Society admitted the Appellant as a member on 28.4.1986.
Despite the fact that the membership had been transferred to the Appellant, a
sale deed was executed by the Society in favour of Srinivas on 7.2.1987. The said
deed was also presented for registration.
11. Despite having been admitted as a member of the Society, no plot admittedly
was allotted to the Appellant. The Appellant made a representation for
allotment of plot on 15.11.1988. The Society in terms of its letter dated
3.1.1990 declined to make any allotment in his favour. Questioning the said
action on the part of the Society, the Appellant filed an application on
4.3.1990 before the Assistant Registrar of the Cooperative Society which was
numbered as ARC 21 of 1990 praying for:
"The Plaintiff, therefore, prays that this Hon'ble Court may be pleased to
declare that the Plaintiff is entitled Plot No. 39 of the Defendant Society and
or in the alternative:
(a)to declare an alternative plot in the same block to an extent of 600 sq.
yards and deliver vacant possession;
(b)An injunction be granted restraining the Defendant from allotting the plot
No. 39 to any other member of the Society, pending disposal of the suit."
12. In the said proceeding, Srinivas was not impleaded as a party. He, thus,
evidently had no notice thereof. The First Respondent in response to the notice
issued by the Registrar allegedly stated that the said plot No. 39 has been
allotted to Srinivas and he had constructed a house thereupon. Despite the same
Srinivas was not impleaded.
13. The Presiding Officer visited the site and found that no house was
constructed and, therefore, made an award in favour of the Appellant on or
about 22.4.1991 directing the Society to allot the plot No. 39 in favour of the
Appellant. Pursuant thereto or in furtherance thereof, the Appellant paid all
the amounts payable therefor. It is, however, not in dispute that that despite
the same, a deed of sale was registered in favour of Srinivas by the First
Respondent on 13.6.1991.
14. An appeal marked as CTA No. 6 of 1991 was preferred before the Third
Assistant Judge, City Civil Court, Hyderabad by the First Respondent against
the award. However, as the transfer of membership was not intimated to
Srinivas, he filed a suit in the court of VII Assistant Judge, City Civil
Court, Hyderabad which was marked as OS No. 3702 of 1992 wherein the Appellant
herein was not impleaded as a party. During pendency of the said suit, Srinivas
transferred his right, title and interest in favour of the Second Respondent
herein by a deed of sale dated 25.7.1992. The Second Respondent thereafter
filed an interlocutory application in the said CTA No. 6 of 1991 for being
impleaded as a party thereat which was numbered as I.A. No. 651 of 1993. Both
the proceedings were transferred to the District Cooperative Tribunal,
Hyderabad, C.T.A. No. 6 of 1991 was renumbered as C.T.A. No. 130 of 1996.
15. In the meantime, the Civil Court granted a decree in the said original suit
No. 3702 of 1992 on 16.10.1996 in favour of the Second Respondent.
16. On 30.09.1996, an appeal was preferred by the First Respondent against the
award dated 22.4.1991 before the Cooperative Tribunal. The Second Respondent
also filed an application for impleading himself as a party therein. By an
order dated 30.09.1996, the said appeal as also the said LA. Were dismissed in
default.
17. The said decree passed in OS No. 3702 of 1992 was put in execution by the
Second Respondent which was marked as EP No. 2 of 997. A revision application
was also filed before the High Court by the Second Respondent against the order
dated 30.09.1996 dismissing the appeal preferred by the First Respondent in
default.
18. The said revision petition was dismissed with a liberty reserved to the Second
Respondent to come on record as an additional respondent if the said appeal was
restored to its original file. The Appellant also filed an execution petition
for executing the award dated 22.4.1991 before the Second Assistant Judge, City
Civil Court, Hyderabad. An application was filed therein by the Second
Respondent contending that the said execution petition was not maintainable and
by an order dated 27.4.1998, the same was allowed by the executing court,
holding:
"In view of the above discussion, it is evident that the petitioner is
claiming title and possession independently and not through the JDR Society and
that prima facie the petitioner has lawful title over the disputed plot and
also possession of the same and that the JDR Society had no title over the
disputed plot even by the date of filing of plaint in ARC 21/90 and that
therefore the petitioner cannot be dispossessed in execution of the decree in
ARC 21/90. It is made clear that the question of right, title or interest in
the property between the parties to this petition to the extent of their
relevance for the proper adjudication of this petition alone has been
considered in the light of the observation in 1992 (1) ALT 371."
19. The Appellant preferred an appeal against the said order dated 27.4.1998 in
the Court of Additional Chief Judge, City Civil Court, Hyderabad which was
numbered as CMA No. 163 of 1998 and by a judgment and order dated 22.12.1999,
the said appeal was allowed opining that no valid title passed to the said
Srinivas prior to 22.4.1991 as the sale deed in his favour was registered after
passing of the award. It was observed:
"So far as the transfer made in the name of the petitioner is concerned by
the said Srinivas, it is not hit by clause 'G' of A.P. Cooperative Societies
Act, 1964 (directions of the effective and proper functioning of the
cooperative societies in the State) since, the same was passed on 3.12.1997
which is subsequent to the sale deed executed in the name of the petitioner.
The petitioner obtained the sale deed from her son who is the power of attorney
holder of the said Srinivas under Ex. A.9. However, this Court has arrived at a
conclusion that three is no valid title passed to the said Srinivas prior to
the award passed by the Tribunal on 22-4-1991. The society being a party to the
said award, it ought to have stopped the registration by virtue of the award
and in fact, it did not stop the same, and kept in abeyance, and allowed the
document to be registered to deprive the award passed by the Tribunal.
Therefore, I am of the opinion, that the learned Asst. Judge has arrived at a
wrong conclusion and on the wrong premise that R.2 had no vested right in the
said property, allowed the petition. Hence, it suffers from infirmities and the
impugned order is liable to be set aside by allowing the appeal."
20. The legality of the said order dated 22.12.1999 came to be questioned by
the Second Respondent herein before the High Court by filing a revision
application which by reason of the impugned order dated 13.11.2001 was allowed
by a learned judge of the said Court stating:
".. .The lower appellate court lost the sight of the fact that as on the
date of the order of the Deputy Registrar, the deed was pending registration
and once it was registered on 13-6-1991, much prior to the initiation of
execution proceedings by the first respondent, it dates back to the date of
presentation of the document, i.e. 7-2-1987. In such circumstances and in view
of the provisions contemplated in Section 47 of the Registration Act as well as
the law laid down by the Supreme Court, which was followed by other High
Courts, the view taken by the lower appellate court cannot be sustained.
Accordingly, the order passed by the lower appellate court is set aside.
However, the right and entitlement of the first respondent vis-a-vis the second
respondent cannot be defeated on account of the above proceedings to which he
is not a party. It is, therefore, left open to the first respondent to approach
the Deputy Registrar for such directions as are necessary and permissible in
law in view of the development that has taken place culminating in the order of
the Executing Court in E.A. No. 155 of 1997."
21. An application for clarification of the said order made by the Second
Respondent herein was disposed of by the High Court in terms of an order dated
22.04.2002 stating:
"The direction in the order dated 13.11.2001 in CRP No. 283 of 2000 as
regards the right of the respondents to approach the Deputy Registrar for such
directions, as are necessary and permissible in law are obviously for allotment
of an alternative plot other than plo't No. 39 phase II which was found to have
been validly transferred in favour of Mr. A. Srinivas the vendor of the
petitioner herein, i.e., Smt. Mina Patalay. The matter is accordingly
clarified."
22. The Appellant is, thus, before us.
23.In view of the fact that one award was passed in favour of the Appellant
herein which attained finality, rightly or wrongly, and similarly a decree
having been passed in favour of the Respondent, this Court with a view to do
justice between the parties on or about 10.8.2005 asked the learned counsel
appearing on behalf of the First Respondent herein to produce the bye- laws,
the scheme of allotment and as to whether any other plot was available, which
could be allotted in favour of the Appellant. This Court was informed that one
plot being plot No. 400, Phase III was available and the same would be allotted
to the Appellant. The said offer was accepted by the Appellant. An undertaking
was also given to pay the price therefor and other legal dues as and when
demanded by the Society.
24. Pursuant to or in furtherance of acceptance of the said offer, and payment made
by the Appellant to the Society, an allotment letter was issued in his favour
in respect of the said plot No. 400. However, interlocutory applications were
filed by one B.M. Ramalingeswara Rao being I.A. Nos. 5-10 of 2005. The matter
came up before a 3-Judge Bench presided over by Hon'ble the Chief Justice of
India and in an order dated 9.9.2005 noticing the statements made in this said
application that the said plot was allotted to the applicant therein in 1984,
it was directed to be put up on 21.9.2005. Interlocutory applications being
Nos. 11-12 were also filed by Dr. M.S. Raju wherein also notices were issued.
In interlocutory applications being Nos. 13 - 14 by, however, while issuing
notice by an order dated 8.12.2005, this Court directed:
"Having heard learned counsel for the parties, we are of the opinion that
the respondent No. 1 - Jubilee Hills Coop. House Bid. Soc. should file its
responses to the interlocutory applications for impleadment filed before us.
Such respondents (sic responses) should be filed by 12.1.2006. The President of
the respondent-Society shall hand over authenticated copies of the relevant
documents and shall also keep the original records with the learned counsel for
the respondent-Society to enable the parties hereof to make inspection thereto.
After such inspections of the Society's records are carried out, the parties
before us including those who have filed applications for impleadment in these
appeals would be at liberty to file their affidavits. Such affidavits should be
filed by 25.1.2006."
25. An application for impleadment has also been filed by one J.S. Rama Murthy
being LA. Nos. 15-16 wherein it has been stated that an award in his favour has
been passed under Section 61 of the Andhra Pradesh Co-operative Societies Act,
wherein it was directed:
"Having regard to the facts, mentioned above and on considering totality
of the circumstances of the case, the Respondent Society (i.e.) Jubilee
Co-operative House Building Society Ltd. TA-No. 173, Hyderabad is hereby directed
to allot and register a suitable plot to petitioner."
26. Mr. S. Muralidhar, learned counsel appearing on behalf of the Appellant, at
the outset, submitted that the order of the High Court as regards
interpretation of Section 47 of the Registration Act, 1908
holding that the sale deed registered in favour of the said Srinivas by the
First Respondent on 13.6.1991 would be effective from 7.2.1987 is not correct
being contrary to a 5-Judge Bench decision of this Court in Ram Saran Lall and
others v. Mst. Domini Kuer and others[. . It was urged that the High
Court committed a manifest error in foreclosing the Appellant's right in
respect of plot No. 39 by directing him to approach the Deputy Registrar
seeking for the remedies afresh.
27.Drawing our attention to Bye-laws 70(a) and 71, it was contended that as in
terms thereof it is postulated that the lands belonging to the Respondent-
Society would be divided into plots for members thereof and each member was
eligible for being allotted a plot of land, the High Court acted illegally and
without jurisdiction in passing the impugned judgment particularly in view of
the fact that in terms of Rule 17 of the Andhra Pradesh Cooperative Societies
Rules, 1964 (for short "the Rules") as also Bye-law 19 of the Society,
a nomination by a member is envisaged. It was argued that as the Appellant was
admitted as a member in place of his deceased mother, he became eligible for
being allotted the very plot being No. 39 which could not have been allotted to
the said Srinivas as no sale deed had been executed \n his favour at the
relevant time. Once the Appellant was admitted to the membership, in all
fairness, the Registrar, Society should have cancelled the allotment made in
favour of the said Srinivas and allotted the same to the Appellant. In any
event, the society ought to have brought the relevant records to the notice of
the Registrar so as to enable him to consider grant of alternative relief in
his favour as had been prayed for.
28. It was further urged that by reason of the award dated 22.4.1991, the
Appellant's indefeasible right on the said plot has been recognized and the
appeal preferred thereagainst having been dismissed, the same attained
finality. The said award, therefore, became final and binding and, thus, in
terms of the Bye-laws the vested right of the Appellant therein could not have
been taken away by reason of the decree passed in the suit. In any event as he
was not a party in the said suit, the decree passed in favour of the Second
Respondent is not binding on him. The principle of res judicata, the learned
counsel would submit, is, thus, attracted and in that view of the matter, the
Respondents herein cannot question the correctness or otherwise of the said
award which was evidently made prior to registration of the deed of sale in
favour of the said Srinivas. In any event, plot No. 400 having been allotted in
favour of the Appellant, the Society must be held to have recognized the right
of the Appellant for allotment of plot in his capacity as a member of the
Respondent-Society. As the said plot was available for allotment, Mr.
Muralidhar would submit, this Court may grant prayer (a) in favour of the
Appellant by directing formalization of the allotment of the said plot by
execution and registration of a sale deed in his favour.
29. Mr. H.S. Gururaja, learned senior counsel appearing on behalf of the Second
Respondent, on the other hand, submitted that the allotment made in favour of
the mother of the Appellant must be deemed to have been cancelled by the
Society as the requisite payments therefor as demanded by the Society had not
been made.
30.Mr. G. Ramakrishna Prasad, learned counsel appearing on behalf of the First
Respondent-Society, urged that at the point of time when purported allotment of
plot No. 400 was made in favour of the Appellant herein, the Administrator was
Incharge, but the affairs of the Society having been taken over by the elected
body, it has now been found out that there were several persons in whose favour
directions have been issued by the Authorities/ Tribunals to consider the
matter relating to allotment of plots in their favour in accordance with
seniority.
31. Mr. T.L.V. Iyer, Mr. M.N. Rao, Mr. L. Nageswara Rao, learned senior counsel
also addressed us pressing the impleadment applications filed by different
applicants. Our attention has also been drawn to an order dated 13.06.2005
passed by the Andhra Pradesh Cooperative Tribunal wherein it was directed that
allotment of plots including plot no.400 should be made in accordance with the
bye laws.
32. The principal question which arises for consideration in this appeal is as
to whether the award passed in favour of the Appellant herein is capable of
enforced in law. The said question may have to be answered in favour of the Appellant
only, if the principle of res judicata is found to be applicable in this case.
33. The Appellant became a member of the Cooperative Society in place of his
mother. As a member of a Society, nobody had a right to be allotted a plot far
less a particular plot. Plot No. 39 was indisputably allotted in favour of his
mother. But before the provisional allotment could fructify by making a formal
allotment and executing a deed of sale in her favour, she had expired. This
fact was not communicated by the Appellant to the First Respondent -Society for
a long time. He in his letter dated 16.3.1985 accepted that he was out of
Hyderabad for more than two and half years. He did not deny or dispute that in
the mean time the Society issued several letters in the name of all allottees
to deposit the development cost. A notice had also been issued to all the
allottees asking them to deposit the development charges failing which the
order of allotment would stand cancelled. It stands admitted that the
development charges had not been deposited in respect of plot No. 39. It may be
that no formal letter of cancellation of the said plot was issued but in view
of the admitted position that the requirements as contained in letter dated
30.9.1982 of the First Respondent having not been complied with, the allotment
would in law, be deemed to be cancelled.
34. An inference as regards cancellation of the said allotment must be drawn in
view of the fact that plot No. 39 admittedly was allotted in favour of Mr.
Srinivas. Even if there had been no express cancellation of allotment of the
said plot, by reason of a fresh allotment, the provisional allotment made in
favour of mother of the appellant must be held to have come to an end. The
allotment of plot No. 39 in favour of the mother of the Appellant was a
provisional one. By reason of such provisional allotment, the allottee did not
derive any legal right far less an indefeasible right. Such provisional
allotment would have acquired permanence provided the requirements therefor were
complied with.
35. Furthermore, the Appellant in its letter dated 16.3.1985 requested for
allotment of another site in lieu of plot No. 39 in Phase III as the same had
been given to someone else. He was informed thereabout. He never put forward
his case before the First Respondent to allot plot No. 39 in his favour upon
cancellation of such allotment made in favour of Mr. Srinivas. Even in his
other letters, similar requests were made. The Appellant was also aware of the
fact that allotment made in favour of her mother had been cancelled due to
non-payment of the development charges. He had specifically asked for allotment
of another site where for he was even ready to make extra-payment. He had,
thus, consistently been asking for allotment of a new plot. He despite such
knowledge that allotment of plot No. 39 made in favour of his mother had been
cancelled and subsequently made in favour of somebody else, while questioning
the refusal on the part of the First Respondent herein to allot another plot in
his favour and initiating the arbitration proceeding only prayed for an order
of injunction restraining the Society from allotting plot No. 39 to any other
member of the Society. His main prayer, however, was that an allotment of an
alternative plot in the same block to the extent of 600 sq. yards be made and
the vacant possession thereof be delivered.
36. It is beyond any cavil of doubt that the conduct of the First Respondent
Society was not fair. When it had made an allotment in favour of Mr. Srinivas,
it was obligatory on its part to disclose all the facts before the Registrar so
as to enable him to arrive at an independent opinion. It failed and neglected
to do so and, thus, it created all sorts of confusions.
37. If the contention of the Appellant is correct, that after the said award,
the Society accepted the deposit of the requisite amount from the Appellant, we
fail to see any reason as to why the said fact was not brought to the notice of
the said Srinivas. The appeal preferred by the First Respondent against the
Appellant herein was also not properly pursued. We do not know whether any
application for restoration has been filed.
38. It may be true, as was submitted by Mr. Gururaja that the appeal was
dismissed for default by the Cooperative Tribunal without giving any proper
notice of transfer, but in the facts and circumstances of the case, it is not
necessary to deal with the said question.
39. If the contention of the Appellant is to be accepted that by reason of the
provisional allotment made in favour of his mother, he acquired an indefeasible
right only because he at a later date was admitted as a member of the Society,
indisputably, the said Srinivas had acquired a higher right as not only the
said plot was allotted in his favour but also a deed of sale was executed. The
Appellant does not deny or dispute about the factum of execution of sale by the
First Respondent herein in favour of Shri Srinivas as far back as on 7.02.1987.
40. In the aforementioned situation, the effect as regards application of
Section 47 of the Registration Act requires consideration. The said provision
reads as under:
"47. Time from which registered document operates.- A registered document
shall operate from the time from which it would have commenced to operate if no
registration thereof had been required or made, and not from the time of its
registration."
41.In terms of the aforementioned provision, therefore, if a deed of sale is
executed although not registered, the right, title and interest in respect
thereof shall pass with retrospective effect, i.e., from the date of execution
thereof.
42. The question is no longer res integra in view of a large number of
decisions of Privy Council as also this Court including Kalyanasundaram Pillai
v. Karuppa Mooppanar 1927 AIR(PC) 42, Venkatasubba Shrinivas Hegde v.
Subba Rama Hegde 1928 AIR(PC) 86, Radhakisan Laxminarayan Toshniwal v.
Shridhar RamchandraAlshi and others , K.J. Nathan v. S.V. Maruthi Rao and
other , Nanda Ballabh Gururani v. Smt. Maqbool Begun and Thakur Kishan
Singh (Dead) v. Arvind Kumar .
43. We would hereinafter notice a few decisions.
44. In Radhakisan Laxminarayan Toshniwal (supra), a Constitution Bench of this
Court has clearly held:
"It was then submitted that the sale deed had as a matter of fact, been
executed on February 1, 1944; but respondent Sridhar brought the suit not on
the cause of action arising on the sale dated February 1, 1944, but on the
transaction of April 10, 1943, coupled with that of April 24, 1943, which being
mere contracts of sale created no interest in the vendee and there was no right
of pre-emption in Respondent 1 which could be enforced under the Code. Mr
Chatterji urged that it did not matter if the sale took place later and the
suit was brought earlier but the suit as laid down was one to pre-empt a sale
of April 1943 when, as a matter of fact, no sale had taken place. If respondent
Sridhar had based his right of preemption on the basis of the sale of February
1, , 1944, the appellant would have taken such defence as the law allowed him.
The defence in regard to the conversion of the land from agricultural into
non-agricultural site which negatives the right of preemption would then have
become a very important issue in the case and the appellant would have adduced
proper proof in regard to it. The right of pre-emption is a weak right and is
not looked upon with favour by courts and therefore the courts could not go out
of their way to help the pre-emptor."
45. The aforementioned decision has consistently been followed by this Court.
Strong reliance has been placed by Mr. Muralidhar on Ram Saran Lall (supra). It
is interesting to note that in that case the decision of the earlier
Constitution Bench of this Court in Radhakisan Laxminarayan Toshniwal (supra)
was not brought to the court's notice. Hon'ble the Chief Justice B.P. Sinha was
a party to both the decisions. His Lordship, therefore, presumably was aware of
the distinctive features of both the cases.
46. In Ram Saran Lall (supra), the Constitution Bench of this Court was
considering a different question, namely, in the light of the provision
relating to preemption what would constitute a complete sale, as would appear
from the following:
"...We will assume that the learned Attorney-General's construction of the
instrument of sale that the property was intended to pass under it on the date
of the instrument is correct. Section 47 of the Registration Act does not,
however, say when a sale would be deemed to be complete. It only permits a
document when registered, to operate from a certain date which may be earlier
than the date when it was registered. The object of this section is to decide
which of two or more registered instruments in respect of the same property is
to have effect. The section applies to a document only after it has been
registered. It has nothing to do with the completion of the registration and
therefore nothing to do with the completion of a sale when the instrument is
one of sale. A sale which is admittedly not completed until the registration of
the instrument of sale is completed, cannot be said to have been completed
earlier because by virtue of Section 47 the instrument by which it is effected,
after it has been registered, commences to operate from an earlier date.
Therefore we do not think that the sale in this case can be said, in view of
Section 47, to have been completed on January 31, 1946..."
[Emphasis supplied]
47. The said decision, therefore, does not in any way support the contention of
Mr. Muralidhar; rather runs counter thereto.
48. We may notice that in Hiralal Agrawal v. Rampadarth Singh and others
: this Court made similar observations. Therein this Court was
considering the question as to whether an application for pre-emption which was
filed before the registration of the deed, although, cognizance in relation
thereto was taken thereafter, would be valid.
49. Despite knowledge, that plot No. 39 has been allotted to somebody else, the
Appellant did not make the said Srinivas a party in his application before the
Registrar. Ex facie the award being in violation of the principles of natural
justice would be a nullity.
50. We have, furthermore, noticed hereinbefore the prayers made by the
Appellant in the said arbitration proceedings. In view of prayer (a) which was
the main prayer ex facie the Registrar acted illegally and without jurisdiction
in directing the First Respondent to allot plot No. 39. The First Respondent
made it clear that the plot in question had been allotted in favour of the said
Srinivas. The question as to whether he raised constructions thereupon or not
was immaterial. He despite such allotment having been made in his favour was
not impleaded as a party. He was a necessary party. No award therefor could
have been passed in his absence. In any event, so far as plot No. 39 is
concerned, the only prayer made by the Appellant was an order of injunction.
The Registrar while exercising his judicial function had no jurisdiction to
pass such an order of injunction in view of prayer (a) made in the application.
51. The said award, therefore, was a nullity. In this view of the matter, the
principles of res judicata will have no application. [See. Haryana State Coop.
Land Development Bank v. Neelam = 2005 (2) SCJ 487, Ram Chandra
Singh v. Savitri Devi and others[JT2005(ll)SC439]. An order which was passed by
an authority without jurisdiction need not be set aside, being a nullity, it in
the eyes of law never existed. [See Balvant N. Viswamitra and others v. Yadav
Sadashiv Mule (Dead) Through LRS. and others.
52. Furthermore, the said award was put in execution. The Executing Court in
view of title passed in favour of the said Srinivas and consequent acquisition
of title by him in terms of the deed of sale executed by him in favour of the
Second Respondent herein was entitled to enter into the question as to whether
the said award was capable of being executed. As the High Court rightly found
that the Second Respondent has acquired a valid title with effect from a date
prior to making of the award, the same became inexecutable. If the said award
was not capable of being executed, the remedy of the Appellant evidently lies
to ventilate his grievance as regards allotment of plot by initiating a
different proceeding.
53.It is true that even in me out the Second Respondent herein against le First
Respondent being OS No. 3702 f 1992 the Appellant was not impleaded s a party.
The decree passed, therefore, may not be binding on the Appellant. For he
self-same reasons we have assigned hereinbefore, the said decree may not Dperate
as a res judicata but we have to consider the matter from a different angle.
The Second Respondent did not enforce the decree as against the Appellant
herein where as the award, in view of the peculiar facts and circumstances of
this case, was required to be enforced by the Executing Court as against the
Second Respondent besides the First Respondent herein and in that view of the
matter the Second Respondent in law could file an appropriate application not
only for his impleadment but also to show that the award is not enforceable in
law.
54. The High Court's judgment, therefore, is unassailable albeit for additional
reasons stated hereinbefore.
55. We may at this stage notice that Mr. Muralidhar categorically stated that
his client does not press for allotment of plot No. 39 and he would be
satisfied if some other plot is allotted in its favour. This brings us to
consideration to the question of allotment of plot No. 400.
56.The question which now arises for consideration is that what would be the
effect of allotment of plot No. 400 in Phase III by the First Respondent during
pendency of the proceedings before this Court, We have noticed hereinbefore
that this Court, while asking the learned counsel appearing on behalf of the
First Respondent, was of the opinion that interest of justice may be subsreved
if some plot which was available for allotment could be directed to be allotted
in favour of the Appellant herein. A representation was made, which now turns
out to be wrong, on behalf of the First Respondent that the plot No. 400 was
available for allotment. It was in that situation, the offer of the First
Respondent as regard allotment of the said plot to the Appellant was accepted.
The Appellate paid a huge sum therefor. The said amount has also been appropriated
by the First Respondent. However, in law only because an order of allotment has
been issued in favour of the Appellant herein by the First Respondent, the same
by itself would not mean that thereby the right of the others for being
considered therefor or for that matter any other plot which was available for
allotment could be put in jeopardy. This Court whence proceeded to consider the
matter of allotment of another plot in favour of the Appellant by the First
Respondent, it had evidently in its mind that same plot may be available for
allotment but by reason thereof, the right of somebody else was not meant to be
nor could be affected. Even in exercise of its jurisdiction under Article 142
of the Constitution while making an attempt to do complete justice to the
parties this Court cannot pass an order which could cause injustice to others
and in particular to those who are not before it. The correctness or otherwise
of the contentions raised by the impleaded parties, thus, need not be gone
into. We must, however, place on record that our attention has been drawn to
the fact that several proceedings as regard allotment of plot at the hands of
the society are pending adjudication before several forums. Even a direction
has been issued by a Co-operative Tribunal as regard saying that the courts of
law would always see to it that while making allotment of plot by a
co-operative society, no discrimination is caused amongst the members. The
Co-operative Society having been formed for the purpose of allotment of plots
to its members must strictly and scrupulously follow the statutory rules as
also the bye-laws framed by it. It must also act within the four corners not
only of the statue and statutory rules but also the bye-laws framed by it. In
terms of the extant law, seniority rule would govern the matter of allotment of
land amongst the members of the Society. This Court is not in a position to
determine the inter se dispute, if any, even as regard the seniority amongst
the members. In fact this Court has not been called upon to do so nor in view
of the Us between the parties we can go thereinto. Whether the Appellant would
be senior in the matter of allotment of plot over the others is a disputed
question of fact. Such disputed question of fact, as and when any occasion
arises therefor, must be gone into and adjudicated upon by an appropriate
forum. The Appellant as a member has a right, although not indefeasible, to be
considered for allotment of a plot along with other members similarly situated.
Such a right, therefore, could not have been taken away nor directed to be
taken away by any court of law.
57. We, therefore, are of the opinion that interest of justice would be
sub-served if the First Respondent is directed to consider the question of
allotment amongst its members upon strict compliance of the extant rules
including its bye-laws wherefor cases of all persons eligible therefor must be
considered.
58. It goes without saying that in the event of any dispute or difference as
regard entitlement to be allotted a plot between the parties, they would be at
liberty to initiate such proceedings or ventilate their grievances before such
forums as is permissible in law.
59. This brings to the fore another question viz. as to whether, in view of the
conduct of the First Respondent, the Appellant should be monetarily
compensated. We think so. The First Respondent despite the knowledge that the
award dated 22.4.1991 was not enforceable appears to have taken some amount
from the Appellant. It compelled the Appellant to fight litigations before
various forums. The Appellant also had to initiate an execution proceeding for
execution of the award passed by the Registrar. It succeeded at least before
one court. Even before this Court, a wrong representation was made by the First
Respondent that plot No. 400 was available for allotment to the Appellant. The
said representation was turned to be wrong. As we are not in a position to
consider the correctness or otherwise of one representation or the other by the
First Respondent herein as also the contentions raised by the impleaded
parties, we are of the opinion that the conduct of the First Respondent is
deplorable. It being a Society was obligated to render all assistance to this
Court so as to enable it in turn to render a decision in accordance with law.
It could not have made any misrepresentation before us. We are not bothered as
to whether at the relevant point of time the First Respondent was
represented'by an Administrator or an elected body. It was admittedly being
represented who could do so before us in law.
60. We, therefore, direct the Registrar of the Cooperative Society to initiate
an enquiry against the persons.concerned who were responsible for making a
wrong representation before us and take suitable action against them in
accordance with law. We further direct that all amounts deposited by the
Appellant before the First Respondent be refunded to him with penal interest at
the rate of 24% per annum, subject, of course, to deduction of such amount to which
the First Respondent was entitled to for admitting him as a member of the
Society. The First Respondent shall also pay a further sum of Rs. 1, 00,
000/-(Rupees one lakh only) to the Appellant herein by way of compensation. The
First Respondent shall also pay a sum of Rs. 1, 00, 000/- (Rupees one lakh
only) to the Second Respondent by way of compensation. Such payments be made to
them within a period of four weeks from date. The First Respondent shall be at
liberty to recover the amount of interest as also the amount of compensation
directed to be paid to the Appellant herein from such persons who may be found
responsible therefor.
61. for the foregoing reasons, these' appeals are dismissed, subject, however,
to the aforementioned observations and directions. The parties shall, however,
in the facts and circumstances of the case pay and bear their own costs
throughout.
62. In view of our views aforementioned, it is not necessary for us to pass any
separate order on the interlocutory applications. They are disposed of
accordingly.
J