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Labour & Industrial LawSupreme Court of India

Dinesh Kumar v. State of Haryana and Ors.

Civil Appeal · 2026 INSC 163Decided 17 Feb 2026
C.A. No.-001701-001701 - 2026
Justice Sanjay Kumar · Justice K. Vinod Chandran · Justice K. Vinod Chandran's

Background

HEWO, a welfare society of HUDA (Haryana Urban Development Authority) employees, allotted two "super deluxe" flats: one to a sitting governing-body member and one by draw of lots to a subordinate of that same member. Dinesh Kumar, another eligible member who had also applied, challenged both allotments as favouritism and ineligibility, but the Punjab and Haryana High Court's Division Bench dismissed his writ petition somewhat cursorily, holding he was estopped from challenging since he had also participated in the draw.

Decision Breakdown

The Supreme Court agreed the writ was maintainable since the society administered housing on land allotted by the government and its office-bearers, though acting in an ex officio capacity, owed a fiduciary duty of fairness and transparency. On the merits, the Court found the governing-body member did not even meet the minimum six-month deputation eligibility when the flat was conceded to him, making that allotment a "clear act of favouritism." It also found the subordinate beneficiary was outside the stipulated pay-band and his application was undated and lacked proof of the earnest-money deposit, making his allotment untenable too. The Court set aside both allotments, ordered a fresh draw among the remaining eligible applicants (with a lower priority slot reserved for the appellant if only one remains), directed refund of amounts paid by the ousted allottees, and imposed costs on the society and the two individual respondents for the "gross abuse of powers."

Lesson Learnt

Even a nominally private welfare society can be held to constitutional standards of fairness under Article 226 if it administers a public benefit (like government-allotted land/housing) to government employees; office-bearers cannot use their position to secure preferential treatment for themselves or their subordinates.

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