J.N. Chaudhary v. State of Haryana
Background
A housing society's members voted to sell its land after development became impractical because of cost, disputes and other obstacles. A small group later challenged the 2003 auction as fraudulent and undervalued. The High Court upheld the sale while increasing the payable price to Rs.70 lakh per acre with 6% interest for the eligible members' benefit.
Decision Breakdown
The Supreme Court dismissed the appeals and left the High Court's orders in place. The general-body sale resolution had been passed while a valid managing committee was in office, and later disputes about the committee did not undo it. The challengers produced no evidence establishing fraud or a 2003 value above the enhanced price, and later appreciation could not establish undervaluation at the auction date. Allegations requiring factual proof belonged in proper evidence-based proceedings, and the Court found no basis to upset the concurrent findings eleven years after the sale.
Lesson Learnt
Members challenging a society's majority decision or land sale need evidence of the alleged illegality or fraud. Suspicion and a property's later rise in value do not by themselves justify undoing an old auction.