NCLT Allows Central Government To Take Over Affairs of Delhi Gymkhana Club

The Centre has alleged that the General Committee of the Club was acting for the benefit of a few chosen members.

Delhi Gymkhana Club.

(Photo: Wikimedia Commons)

The National Company Law Tribunal (NCLT) on Friday, 1 April, allowed the Central government to take over the affairs of the Delhi Gymkhana Club, while appointing a 15-member committee to manage its affairs.

President Justice Ramalingam Sudhakar and Member Narender Kumar Bhola passed the order in a petition moved by the Centre under Sections 241 and 242 of the Companies Act 2013, alleging that the affairs of Delhi Gymkhana Club were being conducted in a manner prejudicial to public interest, Bar and Bench reported.

The Central government stated in its petition that in accordance with several complaints received by it, the affairs of Delhi Gymkhana Club Ltd were inspected by it under Section 206(5) of the Companies Act, during which, the government has alleged, that there was rampant mismanagement by the General Committee of the Club, in violation of the Articles of Association and the Companies Act.

Moreover, the Centre has alleged that the members of the General Committee of the Club were acting only for the benefit of a few chosen members, and at the expense of the general public.

Describing the admission process as parivaar-vaad (dynastic), the government also alleged that the objects of the company successive had been "perversely twisted" by the successive General Committees of the Club and that they functioned in a manner so as to remain in control of the Club through an "unauthorised and complicated succession mechanism".

(With inouts from Bar and Bench.)