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Delhi Dayalbagh House Building Society v. Registrar, Cooperative Societies

Civil Appeal · 2019 INSC 113Decided 30 Jan 2019
Civil Appeal No. 1316 of 2019
Justice A.M. Khanwilkar · Justice Ajay Rastogi

Background

This matter involved two connected appeals by a housing cooperative society. One appeal challenged an order dated 2 July 2013 passed by the Registrar of Cooperative Societies under Section 94 of the Delhi Cooperative Societies Act, 2003, which the society had taken directly to the Supreme Court, bypassing the statutory appeal route under Section 112 of the same Act, on the premise that an earlier Delhi High Court judgment (challenged in the connected appeal) had made adverse observations that made a normal appeal pointless. The second, connected appeal was against that December 2012 Delhi High Court judgment itself, which concerned winding-up proceedings initiated against the society following a member's complaint.

Decision Breakdown

On hearing the matter, the Supreme Court found that the High Court's judgment did not in fact contain any observations that would have prejudiced the society or improperly influenced the Registrar's later order; the Registrar's order was instead based on an independent inquiry by a two-member committee after hearing the parties. Since the society had an effective alternative remedy, a statutory appeal under Section 112, the Court, citing its own precedent in Whirlpool Corporation v. Registrar of Trade Marks, declined to entertain the direct appeal on merits, but to protect the society (given how long the case had been pending), gave it 60 days to file the statutory appeal and directed that it be treated as filed within time. The first appeal was disposed of on this basis, and the second, connected appeal (against the High Court's judgment) was held to have become infructuous as a result and was dismissed.

Lesson Learnt

Courts generally will not bypass a statutory appellate remedy that Parliament or a legislature has specifically provided, even if a litigant believes going straight to a higher court would be more efficient; where delay before the Supreme Court has eaten into the time available, the Court can still protect the litigant by extending the limitation period for filing the proper statutory appeal.

Official source (sci.gov.in)View Judgment (PDF)

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