Facts
The Petitioner Society was registered in 1956.
Source reference: p.2Since 1993, the Society has provided 'Watch and Ward' (security) services based on Annual General Meeting (AGM) resolutions.
Source reference: p.2-3Following complaints by certain resident-members alleging financial irregularities and bye-law violations, the Registrar of Co-operative Societies (RCS) issued a Show Cause Notice on 11.04.2016 and appointed an Inquiry Officer on 10.10.2016.
Source reference: p.3Although the Society sought a revision before the Financial Commissioner as directed by an earlier High Court order, no order was passed for nearly two years.
Source reference: p.4On 30.10.2017, the Assistant Registrar appointed a new Inquiry Officer to probe security services, club accounts, and membership issues.
Source reference: p.5Simultaneously, resident-members filed a cross-petition seeking to wind up the Managing Committee and conduct fresh elections.
Source reference: p.6Issues
1. Whether the Assistant Registrar’s order dated 30th October 2017, appointing an inquiry officer to probe 'Watch and Ward' services and management issues, is sustainable given the Society's Bye-laws and the RWA’s position.
Source reference: p.5, 102. Whether the Society is authorized to collect funds and manage 'Watch and Ward' services for its residents.
Source reference: p.6-73. Whether the Resident Welfare Association (RWA) should be directed to take over security services from the Society.
Source reference: p.9-10Law Applied
The Court applied the Delhi Co-operative Societies Act, 2003, specifically Section 61 regarding the Registrar's power to conduct inquiries.
Source reference: p.8Sections 112 and 116 regarding appeals and revisions.
Source reference: p.4, 9The Court interpreted Society Bye-laws 3(iv) and 10(e), which authorize the Society to undertake welfare activities and maintain funds for 'Watch and Ward' services.
Source reference: p.6It further relied on the Delhi Cooperative Societies Rules, 2007, regarding the independence of auditors.
Source reference: p.11Reasoning
The Court found that the Society's Bye-laws explicitly empower it to provide security services and collect relevant dues.
Source reference: p.6The Court noted that the Residents Welfare Association (ANRWA) passed a resolution on 20.05.2025 stating it lacked the funds and infrastructure to handle colony security and requested the Society to continue managing it.
Source reference: p.9-10The Court reasoned that directing the RWA to take over would be practically unimplementable and that disrupting the existing arrangement based on complaints from a few members would cause "serious prejudice" to the colony.
Source reference: p.10-11Consequently, the Court determined that the inquiry into 'Watch and Ward' services was an impediment to the Society's functioning.
Source reference: p.10However, the Court maintained that the RCS must continue its statutory oversight regarding audits and financial transparency.
Source reference: p.11Holding
The Court set aside the impugned order dated 30.10.2017 and all recommendations made by the Inquiry Officer.
The Society is permitted to continue managing 'Watch and Ward' services in collaboration with the ANRWA.
Source reference: p.10-11Specific Directions: 1. The RCS shall monitor the Society’s Audit Reports and supervise its functioning according to law. 2. The Society must ensure auditors are independent under the 2007 Rules. 3. The RWA was directed to reinstate Mr. W.S. Chona as a full member without further payment, contingent on maintaining harmony.
Source reference: p.11Both petitions were disposed of with no further orders.
Source reference: p.12Original Court PDF
Anand Niketan Cooperative Housing Society Ltd.vsAsstt. Registrar (H/Sec-I) And Anr.
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