Case Law Analysis

Limited Certiorari Jurisdiction of HC in Cooperative-Society Arbitration under the Cooperative Societies Act, 1972 | SC upholds HC interference

The Supreme Court affirmed that a High Court may set aside arbitration awards of a cooperative society only when the award breaches statutory provisions, confirming the narrow reach of certiorari under Articles 226/227. This limits judicial interference in internal cooperative disputes, affecting societies and members alike.

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Sep 1, 2026, 7:57 PM(Updated: Nov 3, 2026)
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Limited Certiorari Jurisdiction of HC in Cooperative-Society Arbitration under the Cooperative Societies Act, 1972 | SC upholds HC interference

The Supreme Court affirmed the Delhi High Court’s exercise of certiorari jurisdiction in a long-running cooperative-society dispute, holding that the High Court was entitled to set aside the arbitrator’s and tribunal’s orders where they were unsupported by evidence and violated principles of natural justice.

Background & Facts

The Dispute

The appellant, Shri Prakash Narain Sharma (deceased, represented by his legal heir), claimed to be a member of M/s. Burmah Shell Co-operative Housing Society (the Society) and therefore entitled to allotment of a plot. The Society denied his claim, asserting that the original claimant, S.N. Sharma, had resigned in 1951 and was never admitted as a member thereafter.

Key Facts

  • 1951: Resignation of S.N. Sharma recorded in the Minutes of the Managing Committee meeting dated 05.05.1951; share transferred to another member on 18.08.1951.
  • 1952: Application for membership filed on 05.11.1952 and rejected; no share certificate issued.
  • 1979: Request to pay deposit for a plot rejected on 04.11.1979.
  • The original claimant filed a dispute before the Joint Registrar, Co-operative Societies, Delhi, which was referred to an Arbitrator.
  • The Arbitrator, despite a restraint order in a civil suit, proceeded ex-parte and awarded the claimant a plot.
  • 21.08.2002: Supreme Court (2022) set aside the ex-parte award and directed continuation of arbitration.
  • The original Arbitrator died; the Registrar, Co-operative Societies, Delhi, acted as Arbitrator and passed an award on 07.10.2003 confirming the claimant’s membership and entitlement to a plot.
  • The Society appealed the Registrar’s award under Section 76 of the Delhi Cooperative Societies Act, 1972; the Delhi Co-operative Tribunal upheld the award by order dated 18.03.2004.
  • The Society filed a writ petition under Articles 226 and 227 of the Constitution before the Delhi High Court. The High Court, on 06.10.2010, set aside the orders of the Registrar and the Tribunal, holding that the Society’s documents showing resignation and rejection of membership had been ignored.
  • The legal heir of the original claimant filed the present civil appeals (Nos. 10693-10694 of 2026) before this Court, challenging the High Court’s interference.

Procedural History

  • 21.08.2002: Supreme Court judgment (2022) set aside ex-parte award.
  • 07.10.2003: Registrar’s award confirming claimant’s entitlement.
  • 18.03.2004: Delhi Co-operative Tribunal order upholding Registrar’s award.
  • 06.10.2010: Delhi High Court judgment setting aside Registrar and Tribunal orders.
  • 31.08.2026: Present Supreme Court judgment dismissing the civil appeals.

Parties' Positions

  • Appellant (Sharma’s legal heir): Argues that the High Court exceeded its writ jurisdiction; the Registrar and Tribunal had correctly applied the law and facts.
  • Respondent (Society & Managing Committee Member P. Jindal): Contends that the High Court was right to intervene because the arbitrator and tribunal ignored crucial documentary evidence, leading to a miscarriage of justice.

Relief Sought

The appellant sought reversal of the Delhi High Court’s order and restoration of the Registrar’s award granting a plot to the legal heir. The Society sought affirmation of the High Court’s decision and dismissal of the appeals.

Case Details

SHRI PRAKASH NARAIN SHARMA DEAD THROUGH LRS. vs M/S. BURMAH SHELL COOPERATIVE HOUSING SOCIETY (REGD) THROUGH MANAGING COMMITTEE MEMBER SH. P. JINDAL

2026 INSC 927
PDF
Court
Supreme Court of India
Date
2026-08-31
Case Number
C.A. No.-010693-010694 - 2026
Bench
HON'BLE MR. JUSTICE UJJAL BHUYAN
Counsel
Pet: Jitendra Mohan Sharma
Res: Ashim Vachher

Frequently Asked Questions

The Court held that certiorati jurisdiction is supervisory, not appellate, and is limited to correcting jurisdictional errors, violations of natural justice, or decisions manifestly unsupported by evidence.
A finding of fact may be challenged if it is made without any evidence, is purely speculative, or is perverse, thereby constituting an error of law amenable to certiorati.
Yes, if the arbitrator’s order is based on a jurisdictional error or ignores material evidence, the High Court may intervene under its certiorati jurisdiction.
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Disclaimer

This article is for informational purposes only and does not constitute legal advice. The views expressed are based on the judgment analysis and should not be taken as professional counsel. Please consult with a qualified attorney for advice specific to your situation.