Procedural Flaws in Self-Draw of Lots Cannot Deny Property Rights: Delhi High Court Directs RCS to Process Flat Allotment for 77-Year-Old Senior Citizen

The Delhi High Court has directed the Registrar of Cooperative Societies (RCS) to take a decision on the regularization and allotment of a flat in favor of a 77-year-old senior citizen. A division bench comprising Justice Prathiba M. Singh and Justice Madhu Jain ordered the RCS to verify the relevant documents and forward its recommendations to the Delhi Development Authority (DDA) within two months. The ruling builds upon established judicial precedents where procedural technicalities concerning the self-draw of lots by housing societies were set aside to protect the legitimate property rights of valid members.

Background of the Case

The petitioner, Smt. Nirmala Devi, a 77-year-old senior citizen, approached the High Court seeking the regularization and allotment of Flat No. E-209, Second Floor, Venus Apartments (Jatav Co-operative Group Housing Society Ltd.) located in Pitampura, Delhi.

The history of the flat traces back to June 14, 1998, when the Society conducted a draw of lots and issued a share certificate to one Mr. Shiv Raj Singh Kardam. Mr. Kardam subsequently took possession of the property. On August 4, 2003, Mr. Kardam executed a Power of Attorney in favor of the petitioner, permitting her to manage the flat and granting various covenants, including the power of sale.

Although the Society issued a “No Objection Certificate” (NOC) to the petitioner to apply to the DDA for converting the flat from leasehold to freehold, her formal allotment remained pending. Despite submitting representations on June 12, 2018, and November 17, 2025, she received no initial response from the RCS. Finally, on April 27, 2026, the RCS issued a letter stating that the flat could not be allotted to her because the initial draw of lots was a “self-draw” conducted without the statutory approval of the RCS.

Arguments of the Parties

The petitioner’s counsel argued that her membership is not in doubt and that the Society had already issued an NOC for the transfer. It was further contended that the issue of the self-draw of lots had already been regularized by a policy decision taken by the then Lieutenant Governor of Delhi on September 20, 2011. To support this, the petitioner relied heavily on the High Court’s prior rulings in Rajeev Saxena & Ors. v. Registrar of Cooperative Societies & Ors. (2025) and Smt. Janak Kumari Gandhi & Ors. v. Registrar of Cooperative Societies & Ors..

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The respondents, including the RCS, the Society, and the DDA, were represented by their respective counsels during the hybrid hearing. The primary roadblock raised by the RCS administrative action was the lack of prior official approval for the Society’s independent draw of lots.

The Court’s Analysis

The Court reviewed the legal framework and extensively cited the precedent set in the Rajeev Saxena case. In that matter, the High Court noted that numerous cooperative societies had conducted self-draws when the RCS failed to act on approvals over long periods. The Court highlighted the September 20, 2011 directive by the then Lieutenant Governor, Mr. Tejendra Khanna, who explicitly approved the regularization of self-draws for multiple societies, noting:

“Evidently, no irregularity other than procedural, was involved.”

The division bench reiterated the observations from the Rajeev Saxena judgment, which emphasized that members should not suffer due to procedural delays between housing societies and the regulator:

“The clear picture that emerges from the facts submitted and the documents placed on record is that the Petitioners have been deprived of the legitimate entitlement to their property rights over the last two decades. The mistake, if any, could have only been of the Housing Society and the RCS and not of the Petitioners.”

The Court further adopted the view that:

“The RCS ought to have taken a pragmatic view of the matter rather than repeatedly insisting on technicalities.”

Decision of the Court

Applying the precedent to the current facts, and noting that the Society holds no objection to the allotment, the High Court directed the petitioner and the Society to appear before the RCS on June 4, 2026, at 11:30 AM.

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The RCS has been ordered to verify the documents and pass a final decision on the allotment within a period of two months, strictly keeping the cited judgments in mind. If any deficiencies or outstanding fees are discovered, the petitioner and the Society must be allowed to cure them.

Once the RCS sends its recommendation to the DDA within the stipulated two-month window, the petitioner is permitted to apply for the conversion of the property from leasehold to freehold. The DDA is then mandated to process the conversion application after checking standard formalities. The Court granted the petitioner liberty to approach the court again if the respondents fail to implement the directives.

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Case Details

  • Case Title: Smt Nirmala Devi v. Registrar of Co operative Societies & Ors.
  • Case No.: W.P.(C) 19351/2025 & CM APPL. 33945/2026
  • Bench: Justice Prathiba M. Singh and Justice Madhu Jain
  • Date: May 19, 2026

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