Delhi High Court

Co-operative society must restore flat category in adherence to a binding final arbitral award.

Jagdish Chander Bhatla vs The Registrar Co-Operative Societies & Ors.

Delhi High CourtJUDGMENT: April 10, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, a member of the Jan Vikas Co-Operative Group Housing Society Ltd., challenged a list dated September 24, 2025, issued by the Registrar Co-operative Societies (RCS), which incorrectly classified his flat as ‘Category B’ instead of ‘Category C’

Source reference: p.1

Previously, an arbitration award dated January 21, 2019, passed under Section 70 of the Delhi Co-operative Societies Act, 2003, had already directed the restoration of the Petitioner's category to ‘Category C’

Source reference: p.2

Despite this award, the Society’s Secretary (Respondent No. 3) allegedly engaged in irregular activities, leading to the incorrect categorization

Source reference: p.2-3

During proceedings, the Society's President filed an affidavit stating no objection to the Petitioner's claim, and the Secretary subsequently issued a letter dated January 21, 2026, admitting the claim for ‘Category C’

Source reference: p.3-4
02

Issues

1. Whether the Petitioner is entitled to the restoration of his flat category from ‘Category B’ to ‘Category C’ in accordance with the prior binding arbitration award and the subsequent admissions by the Society

Source reference: p.4-5
03

Law Applied

Section 70 of the Delhi Co-operative Societies Act, 2003, regarding the resolution of disputes through arbitration

Source reference: p.2

The court primarily relied on the principle of finality of arbitration awards and the principles of natural justice and equity, noting that the arbitrary downgrading of a member's category without legal basis is unsustainable

Source reference: p.4

The court also exercised its writ jurisdiction under Article 226 of the Constitution of India to ensure the implementation of a settled legal right

Source reference: p.1, 5
04

Reasoning

The court observed that the Petitioner’s right to ‘Category C’ was already crystallized by the Sole Arbitrator’s award in 2019, which found the Society's action of downgrading the category to be against the law and principles of equity

Source reference: p.4

The High Court noted the internal discord within the Society management, where the President accused the Secretary of vested interests and irregular activities regarding flat allotments

Source reference: p.3

Since both the Society and the Secretary eventually submitted that they would abide by the 2019 award and had no objection to the restoration, the legal impediment to the Petitioner’s claim was removed

Source reference: p.4

The court determined that the RCS list dated September 24, 2025, was erroneous as it failed to account for the executed arbitration award

Source reference: p.5
05

Holding

The Court allowed the petition and directed that the arbitration award dated January 21, 2019, be given full effect, restoring the Petitioner’s status to ‘Category C’

The court ordered the RCS to send the modified recommendation to the Delhi Development Authority (DDA) by April 30, 2026, and the DDA was directed to conduct the draw of lots for the Petitioner under ‘Category C’ in accordance with the law

Source reference: p.5
Delhi High Court

Original Court PDF

Jagdish Chander BhatlavsThe Registrar Co-Operative Societies & Ors.

Delhi High Court · April 10, 2026

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