The petitioner Society filed a writ petition challenging the arbitrary cancellation of a lease granted to it. The court held that the matter involved a contractual dispute and directed the petitioner to approach the Civil Court for an appropriate remedy.
Petitioner directed to pursue alternative remedy of filing a civil suit.
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CIVIL WRIT PETITION NO.15820 OF 2009 :{ 1 }:
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
DATE OF DECISION: NOVEMBER 16, 2012
Yatana Educational Society, New Delhi
.....Petitioner
VERSUS
State of Haryana and others
....Respondents
CORAM:- HON'BLE MR.JUSTICE RANJIT SINGH
Present: Mr. Kanwaljit Singh, Sr.Advocate with Mr. Ajaivir Singh, Advocate, for the petitioner.
Ms. Kirti Singh, DAG, Haryana, for the State.
Mr. Sushil Jain, Advocate, for respondent No.5.
Mr. Amar Vivek, Advocate, for respondent Nos.6 and 7.
RANJIT SINGH, J.
The Faridabad Ex-Sainik and Karamchari Co-operative House Building Society Limited (for short, “the Society”) is a registered Society under the Punjab Cooperative Societies Act, 1961. The Society sought permission from the Assistant Registrar, Cooperative Societies, Faridabad, for leasing the land for setting up a Health Centre in Sainik Colony, Faridabad. The Assistant Registrar
CIVIL WRIT PETITION NO.15820 OF 2009 :{ 2 }:
wrote to Deputy Registrar on 2.4.2009 for according necessary approval. The said approval was granted on 10.4.2009 on certain terms and conditions, which are as under:-
“(1) The land which is proposed to be leased out by the Society should be given in open auction.
Aforesaid communication was followed by another communication dated 16.4.2009, which was to the following effect:-
“With reference to the above subject cited, while sending a photo copy of the letter granting permission by the office of D.R.C., Gurgaon, it is written that immediate compliance of the points raised in the letter be made. Besides this, it is also written that for giving on lease an advertisement be given in any national newspaper and the lease rates should not be less than the rate of MCF and HUDA department.
DA/Photo copy of the letter.”
A public notice was issued in Indian Express, showing that land measuring 2727 square yards of the Society was scheduled to be auctioned on 13.5.2009 in the office of Society as per rules of auction. The petitioner-Society took part in the open auction held on 13.5.2009. The bid of the Society was considered
CIVIL WRIT PETITION NO.15820 OF 2009 :{ 3 }:
highest at the rate of 775/- per square yard. The bid was accepted and the proceedings were confirmed on 16.5.2009. An agreement was entered into between both the Societies on 30.7.2009. A sum of 12,94,550/- was forwarded by the Society. Thereafter abruptly, without issuing any show cause notice or otherwise providing any opportunity of hearing to the petitioner-Society, the auction held in favour of the Society was illegally and arbitrarily cancelled on 15.8.2009. Resolution, when conveyed to the petitioner-Society, led to the filing of present writ petition to challenge the order of cancellation of the lease executed in its favour. The petitioner-Society has pleaded various grounds to challenge the impugned order, violation of principles of natural justice being the main and prime ground in this regard.
Notice of motion was issued. Reply has been filed.
A preliminary objection in regard to maintainability of the writ petition is raised. It is stated that both the Societies have purely entered into a bilateral contract and the writ is not an appropriate remedy to invoke the violation of the contractual obligation. Though some submissions are made in regard to maintainability of the writ petition but ultimately learned senior counsel appearing for the petitioner seeks permission to approach the Civil Court to challenge the cancellation order and to have its remedy in accordance with law, which may include the remedy of seeking damages against the illegal and arbitrary cancellation of the lease deeds. The prayer made by the learned senior counsel is accepted. The petitioner-Society is relegated to its alternative remedy of filing a civil suit or to approach
CIVIL WRIT PETITION NO.15820 OF 2009 :{ 4 }:
any other Forum in accordance with law. The petitioner-Society would also be at liberty to file an appropriate application, if any objection in regard to delay in approaching the Civil Court is raised or the petitioner-Society is confronted with any such objection. To be fair to the petitioner-Society, the respondents have conceded that they will not raise any objection on this count. Since the petitioner-Society has pursued its remedy for considerable period before this Court, it is considered appropriate to direct the Civil Court or the Forum concerned to deal with the case with speed and decide the same as early as possible.
The writ petition is accordingly disposed of.
November 16, 2012 khurmi
(RANJIT SINGH ) JUDGE
2 issues framed by the court
Whether the High Court should exercise jurisdiction to adjudicate the validity of the cancellation of a lease between two societies.
Whether an alternative civil remedy is appropriate for challenging the arbitrary cancellation of a lease agreement.
Yatana Educational Society
State of Haryana
Ranjit Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
