Court Mandates Regularization of Pre-2010 Self-Draw of Lots in Cooperative Societies if Procedurally Sound

The Petitioner, a member of the Mayur Bagh Cooperative Group Housing Society Limited (Membership No. 49), sought regularization of a "self-draw" of lots conducted for her flat (Flat No. 39)

She was issued a share certificate in 1987 and a possession letter in 1994

Despite receiving a No Objection Certificate in 1999, the flat was not regularized

In March 2025, the DDA raised objections regarding the legality of the self-draw process—where the Society conducts the allotment without the oversight of the Registrar of Cooperative Societies (RCS)

The Petitioner approached the High Court seeking a directive for regularization, whereas the RCS contended that no formal representation had been made to them

1. Whether the self-draw of lots conducted by the Society prior to 2010 can be regularized by the RCS despite procedural irregularities

2. Whether the Petitioner is entitled to the benefit of the policy decision taken by the Lieutenant Governor of Delhi regarding the regularization of self-draws in cooperative societies

The court primarily applied the directive of the Lieutenant Governor of Delhi dated September 20, 2011, which permits the regularization of self-draws conducted by societies prior to 2010, provided the outcomes were accepted unanimously and no irregularities other than procedural ones existed

The court further relied on the precedent established in Sh. Rajeev Saxena and Ors. v. Registrar of Co-operative Societies and Ors. (W.P.(C) 12218/2021), which held that members should not be deprived of property rights due to technical or procedural mistakes by the Society or the RCS, especially when the Lieutenant Governor's policy grants an opportunity for regularization

The court observed that the Petitioner has been in possession and held a share certificate for several decades, during which time the RCS failed to take a pragmatic view of the procedural lapse

Applying the rationale from Rajeev Saxena, the court noted that where self-draws were held with the consent of members and without ill-motive, they deserve regularization under the 2011 LG notification

The court emphasized that the RCS should not compel members to "run from pillar to post" for technicalities if the allotment is otherwise genuine

Consequently, since the Petitioner’s self-draw occurred well before the 2010 cutoff mentioned in the LG's decision, her case fell within the ambit of the regularization policy

The RCS is ordered to verify the Petitioner’s documents, the genuineness of the draw, and the Society's records, and pass a final decision within two months

The court further directed both the Petitioner and the Society to appear before the RCS on June 8, 2026, to facilitate this process