Supreme Court Refuses To Interfere With Delhi HC Order On Interim Chairman Of SCBA Multi-State Co-operative Group Housing Society

A bench comprising Chief Justice of India DY Chandrachud, Justices JB Pardiwala and Manoj Misra was hearing the challenge to the order of the Delhi High Court which directed the appointment of an interim chairman for the Group Housing Society under the supervision of Senior Advocate Dr. S Murlidhar . 

The Delhi High Court on August 29 allowed the writ petition filed by the SCBA Multi-State Co-operative (SCBA MSC) Group Housing Society seeking directions to Central Registrar of Cooperative Societies (CRCS) to conduct re-election for the post of Chairman of the Society from amongst the Board of Directors and for conducting an enquiry against petitioner for his intentional misconduct and use of criminal force against other Directors of the society. 

The bench of Acting Chief Justice Manmohan and Justice Tushar Rao Gedela ordered the following : (1) CRCS to expeditiously decide the representations dated June 3 and June 27 by the Society against the Petitioner; (2) Dr S Murlidhar to be appointed as the Observer of the board meetings of the Society; (3) appointment of an Interim Chairman under supervision of Dr Murlidhar.

Today, Senior Advocate Gopal Sankarnarayanan appearing for Pandey contended that if the High Court in its order observed that the question of re-election will be decided in accordance with law, then appointing an interim chairman would be unjustified considering that Pandey has neither been removed nor suspended from his post.

"Where is the question of Interim Chairman? I have not been suspended, I have not been removed."

At this juncture the CJI stated, "Let the views of the General Body be tested." 

The senior counsel argued that the Chairman can only be removed officially as per a resolution passed by the General Body and not the board of directors/executive body. He also stressed that the High Court's direction for appointment of an interim chairman was beyond the scope of the writ petition filed before it. 

The CJI opined that the matter was not a case for interference under Article 136.

Sankaranarayanan then expressed his desire to not "pressing it (the matter) any further." 

The Court was informed by the Counsel appearing for the Group Housing Society that the executive body in May passed a no-confidence motion against Pandey in a 12:1 majority. 

Subsequent to the hearing, a communication by the Board of Directors today was circulated stating that the election of the Interim Chairman will be conducted by Dr Murlidhar tomorrow September 7. It also stated that all past sole work of Pandey would stand null and void. 

Background

Earlier, the Supreme Court also heard the challenge to the Delhi High Court order dated January 16 which allowed the disqualified members of the SCBA Multi-State Cooperative Group-Housing Society to contest the Housing Society Elections.

On January 17, the Court refused to stay the elections considering that the elections were to take place the next day- January 18 and should not be interfered with at such a juncture.

Pandey was appointed as the Chairman with a majority of 8:7 by the Board of directors on January 20. 

Notably, pursuant to the elections, an arbitrator appointed by the order of the Top Court under S.84 of the Multi-State Cooperative Societies Act, 2002 (MSCS Act) on May 18 disqualified 2 out of 4 Board Members on grounds of being ineligible. This reduced the total strength of the Board of Directors to 13 from 15. 

Case Details : SATISH PANDEY Versus SUPREME COURT BAR ASSOCIATION MULTI STATE COOPERATIVE GROUP HOUSING SOCIETY LTD. AND ORS. SLP(C) No. 20553/2024 

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