Deemed disqualification under co-operative rules must be fully considered before plot allotment and writ reconsideration.

Rule 25(2) of the Delhi Co-operative Societies Rules, 1973 creates a deemed disqualification operating as a legal fiction, and its full statutory effect must be considered before directing allotment of a plot. The availability of the statutory remedy under the Act and Rules also had to be examined, because the High Court had not addressed these provisions before deciding the writ petition. As those issues were left unanalyzed, the matter could not be finally resolved on the existing basis and required reconsideration. The writ petition was therefore remitted to the High Court for a fresh hearing in light of the applicable legal provisions.

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Issues: (i) Whether the deemed disqualification under Rule 25 of the Delhi Co-operative Societies Rules, 1973 and the availability of the statutory mechanism had to be examined before directing allotment of the plot, and whether the writ petition required reconsideration by the High Court.

Analysis: Rule 25(2) creates a deeming disqualification and operates as a legal fiction, which must be given full effect according to its purpose and consequences. The effect of that provision, along with the question whether the respondent had to pursue the statutory remedy available under the Act and Rules, had not been examined by the High Court. In those circumstances, the matter could not be finally decided on the basis adopted by the High Court and required a fresh hearing.

Conclusion: The writ petition was required to be heard afresh by the High Court in the light of the applicable legal provisions, and the matter was remitted for reconsideration.

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