W.P.(C) 13982/2026 $~55 * IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010453292026 + W.P.(C) 13982/2026 & CM APPL. 65275, CM APPL. 65276 JYOTI CGHS LTD. THROUGH ITS PRESIDENT .....Petitioner Through: Mr. Ravi Chawla, Mr. Vivek Luthra, Mr. Daksh Tikod and Ms. Aakarshika Chawla, Advs. versus REGISTRAR OF COOPERATIVE SOCIETES & ANR. .....Respondents Through: Mr. Shashi Pratap Singh, Advocate CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE DINESH BHATT O R D E R % 22.09.2026 1. This hearing has been done through hybrid mode. 2. The present petition has been filed by the Petitioner-Jyoti CGHS Ltd. (hereinafter ‘Society’) under Article 226 of the Constitution of India, inter alia, challenging the impugned order dated 27th March, 2026 passed by the Financial Commissioner in a revision petition i.e., Case No. 38/2023, under Section 116 of Delhi Co-operative Societies Act, 2003. 3. The said revision petition arises out of orders dated 28th February, 2024 and 14th January, 2026 passed by the Special Registrar of Cooperative Societies and Registrar of Cooperative Societies (hereinafter, ‘RCS’), whereby the Society was directed to transfer the membership in favour of the Respondent No. 2 - Mrs. Shweta Bhardwaj. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 4. The challenge to the impugned order by the Society is that there are several amounts including maintenance dues which the Respondent No. 2 has to pay and since the said payments have not been made, the membership could not have been transferred in her name. 5. The Court has heard ld. Counsel for the Petitioner Society and the ld. Counsel for the RCS. The stand of the ld. Counsel for the Petitioner is that the Arbitral Award dated 02nd December, 2025 had directed that no maintenance amounts are due from Respondent No. 2 and further directions were issued against the Society vide the said award. The challenge to this award is now pending in an appeal before the Delhi Cooperative Tribunal (hereinafter, ‘DCT’) which has stayed the said award. The stand of the Society is that hence, the membership cannot be granted to the Respondent No. 2. 6. Mr. Singh, ld. Counsel for the RCS on the other hand submits that on the basis of pending maintenance dues, the membership of the Respondent No. 2 cannot be withheld as observed by the RCS in the order dated 14th January, 2026 dismissing the review application filed by the Society under Section 115 of the of Delhi Co-operative Societies Act, 2003. 7. The short question that arises in the present petition is whether the membership of the Respondent No. 2 can be held up due to the non-payment of maintenance dues or not. 8. Vide Arbitral Award dated 02nd December, 2025, the ld. Arbitrator has held as under: “On the basis of documents at records and arguments of both parties the following award is pronounced. 1. Outstanding dues on account maintenance charges claimed by Claimant (Jyoti CGHS Ltd ) against the defendant Sh. Arun Sud This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 through Attorney Smt. Sweta Bhardwaj , Flat No. 81-C has been paid /cleared . Nothing is outstanding against the defendant on the date. This arbitration case should be treated as settles. . 2. Claimant (Jyoti CGHS Ltd ) is directed to refund to defendant the Excess payment of Rs,5510/- made by the defendant on account of maintence charges within 30 days of receipt of this order. 3. Further Claimant (Jyoti CGHS Ltd.) is directed to recover amounting Rs. 91,000/- received by the society but not accounted for in the society account from concerned/responsible official of the society and action should be initiated against him under DCS Act, and DCS Rules 2007. Given under my hand and seal on 02,12,2025” 9. This award was challenged by the Society before the DCT, which passed the following order on 11th March, 2026: “Original receipt books have been produced by the appellant society and perused by the Tribunal. Sh. Vig has also placed on record an affidavit of Sh. Igbal Singh Nain, Ex-Treasurer of the society. The original receipt which have been produced today certainly did not match the receipts relied upon by the Respondent Ms. Shweta Bhardwaj. It is submitted by Sh. Vig that the receipts relied upon by the respondent are forged and fabricated. Prima facie of submission of Sh. Vig seems to be Plausible Issue notice in the appeal to the Respondent on filing of PF/SP. Meanwhile, operation of the award dated 02.12.2025 passed by Sh. Prahalad Singh, Arbitrator is stayed qua the appellant. Issue notice to the concerned DR of the RCS to present with the Trial Court record on the adjourned date. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 Copy of order be given dasti to the appellant. Notices returnable on 07.05.2026. PF be filed within 10 days from today.” 10. In the meantime, the Respondent No. 2 had also filed an application under Section 91 of the Delhi Co-operative Societies Act, 2003 seeking membership in which vide order dated 28th February, 2024, the Special Registrar Co-operative Societies had directed transfer of the membership in the following terms: “5.From the perusal of the copies of documents annexed by the appellant with the appeal, the appellant has applied with all requisite documents and affidavits and has paid the requisite amount of fees. Further the appellants has annexed a copy of registered Sale Deed registered on 05.09.2013. 6.All the conditions as required under the provisions of Section 91 of DCS Act 2003 are fulfilled in the present case 7. No disqualification has been pointed out by the respondent society qua the appellant for her becoming a member of the society. 8.Transfer of Membership cannot be refused by a society without sufficient cause. The society does not have an unfettered right to admit, deny or refuse transfer of membership. 9.In view of the above, the respondent society is directed to transfer membership in the name of the appellant Shewta Bhardwaj Dixit r.o. flat no. 81-C in the respondent society within 10 days from the date of receipt of this order” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 11. The review application filed by the Society under Section 115 of the of Delhi Co-operative Societies Act, 2003 against this order was also rejected on 14th January, 2026 with the following observations: “xxx xxx xxx Upon careful consideration of the pleadings, submissions made by both parties, and the material available on record, this Authority observes that the scope of review under Section 115 of the Delhi Co-operative Societies Act, 2003 is limited and confined to correction of an apparent error on the face of the record or discovery of new and important matter or evidence which despite due diligence, was not within the knowledge of the applicant at the time of passing of the impugned order. In the present case, the applicant society has failed to bring on record any such new or material evidence warranting interference with the order dated 28.02.2024 passed by the Ld. Special Registrar under Section 91 of the DCS Act, 2003. It is further observed that the Ld. Special Registrar has passed a reasoned and speaking order after due consideration of the provisions of Section 91 of the DCS Ael. 2003 read with Rule 92 of the DCS Rules, 2007, and the same does not suffer from any illegality, perversity, or procedural irregularity. The contention of the applicant society regarding alleged outstanding dues is already the subject matter of separate proceedings under Section 70 of tie DCS Act, 2003, which are pending adjudication before the competent forum. Pendency of such proceedings, by itself; does not operate as a bar to transfer of membership under Section 91 of the Act, particularly when the transferee has filed the prescribed affidavit in Form-21 and has undertaken to discharge any lawful liability, if so determined in accordance with law. This Authority further observes that disputes relating to quantification of recovery of dues are required to be adjudicated strictly in accordance with the mechanism provided under Sections 70 and 71 of the DCS Act, 2003, and the same cannot be used as a ground to indefinitely This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 withhold transfer of membership once the statutory requirements under Section 91 and Rule 92 stand substantially complied with. The insistence of the society on prior clearance of disputed dues. without final adjudication, is not supported by the scheme of die Act and Rules. In view of the above, this Authority finds no infirmity or apparent error in the order dated 28.02.2024 passed by the Ld. Special Registrar. The review application is devoid of merit and does not call for any interference. Accordingly, the order dated 28.02.2024 passed by the La. Special Registrar is hereby upheld. The applicant society is directed to transfer the membership in favour of the respondent strictly in accordance with Section 91 of the Delhi Co-operative Societies Act, 2003 read with Rule 92 of the Delhi Co-operative Societies Rules. 2007, within a period of 10 days from the date of issuance of this order. Outcome of proceedings pending under Sections 70 and 71 of the Act shall be dealt independently in accordance with law.” 12. The Society, thereafter, challenged the orders dated 28th February, 2024 and 14th January, 2026 passed by the Special Registrar of Cooperative Societies and RCS wherein the Financial Commissioner has observed as under: “6. After hearing submissions/contentions of both sides, it is clear that the award passed by the Arbitrator is in favour of R-2, which has been challenged by Petitioner Society and the same is pending before the DCT. Hence, there Is no immediate reason for this Court to interfere with the impugned orders passed by the RCS and parties are advised to await the decision of the DCT, as also the decision of RCS, who has already committed before the High Court to decide on the issue of grant of prosecution sanction against the Petitioner. 7. In view of the above, it is quite clear that the Petitioner is trying to approach multiple forums, and creating confusion. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 The RCS and DCT are already handling certain aspects in the case and their decision is vital to further adjudicate in the matter. The case is accordingly dismissed and the revision petition no.38/2026 titled "Jyoti Coop. G/H Society Ltd. Vs. Registrar Cooperative Societies & Anr." is disposed of.” 13. The Petitioner Society is aggrieved by the observations made by the Financial Commissioner. 14. In the opinion of this Court, after seeing the record, the observations of the Financial Commissioner appear to be fully justified. A Society is primarily constituted for the sake of its Members. It ought to resolve issues with its members in a cordial and amicable manner, rather than entangling the member in multiple litigations repeatedly. The membership of any Society is a valuable right which a member has and a dispute on maintenance charges which is already pending before the DCT could not have held up the membership of the Respondent No. 2. 15. Under these circumstances, it is directed that the membership confirmation shall now be issued by the Society to Respondent No. 2 within a period of one month by sending the communication to the RCS. 16. The above direction shall, however, be subject to the final decision of the DCT where the challenge to the award dated 02nd December, 2025 is pending. If the DCT directs that any membership dues or other amounts are payable, the same shall be paid by the Member, subject to availment of legal remedies. 17. If the Society does not comply with the present order, the Respondent No. 2 is given liberty to approach this Court by way of an application. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01 W.P.(C) 13982/2026 18. The petition is disposed of in these terms. All pending applications, if any, are also disposed of. PRATHIBA M. SINGH, J DINESH BHATT, J SEPTEMBER 22, 2026 ss/ck This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/09/2026 at 11:51:01