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Geeta & Ors. vs. Financial Commissioner, Govt. of NCT Delhi & Ors.

Civil Appeal · 2023 INSC 316Decided 29 Mar 2023
Civil Appeal No. 1362 of 2011
Rajesh Bindal · Aravind Kumar

Background

The late husband of the lead appellant was a member of a cooperative group housing society that had allotted him a flat. He fell into arrears on dues for construction of the flats, and after notice and an opportunity to pay, the society expelled his membership in 1992, a decision approved by the Cooperative Societies Registrar in 1993. His appeal to the Financial Commissioner, Delhi and subsequent writ petition to the Delhi High Court were both dismissed, and his heirs (the appellants) then approached the Supreme Court.

Decision Breakdown

The Supreme Court noted that all authorities below had made concurrent findings that the deceased had genuinely defaulted on payments and had repeatedly been given, but never availed of, opportunities to clear the dues, including an explicit offer to pay with interest that was declined because he disputed the construction cost calculation. The appellants' new argument that the society failed to follow the procedure under Rule 36(2) of the Delhi Cooperative Society Rules, 1973 was raised for the first time before the Supreme Court and was rejected, with the Court observing that "procedural law is subservient to justice." Since the underlying default was never genuinely disputed or cured despite multiple chances, the Court dismissed the appeal and upheld the expulsion.

Lesson Learnt

Cooperative society members who default on dues must actually clear them when given a fair opportunity to do so. Courts will not entertain belated procedural objections raised for the first time on appeal when the underlying default itself was never seriously contested or remedied.

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

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