On 1st April’2022, Central government's plea to take over the affairs of the Delhi Gymkhana Club has been allowed by The National Company Law Tribunal (NCLT) thereby appointing a 15-member committee to manage its affairs.
Additional Solicitor General KM Nataraj represented the Centre while the Delhi Gymkhana Club was represented by advocate Namit Saxena.
The order was passed by President Justice Ramalingam Sudhakar and Member Narender Kumar Bhola. The order was passed while adjudicating a petition moved by the Central government under Sections 241 and 242 of the Companies Act, 2013 alleging that the affairs of Delhi Gymkhana Club were highly prejudicial to public interest.
The Central government, in its petition before the National Company Law Tribunal mentioned that following the several complaints received, the affairs of M/s Delhi Gymkhana Club Ltd were inspected by it under Section 206(5) of the Companies Act, 2013.
After its rigorous investigation, Central government alleged that there was rampant mismanagement by the General Committee of the Club, which were violative of the Articles of Association and the Companies Act, 2013.
It was further alleged that over the years, the successive General Committees of the Club had vaguely twisted the objects of the company and functioned in a manner so as to remain in control of the Club through an "unauthorised and complicated succession mechanism".
The admission process to the Club had over time become dynastic, alleged the Central Government. It was alleged that the members of the General Committee of the Club were acting for the benefit of a few chosen members, and which meant at the expense of the General Public.
To bring an end to the said mismanagement of all kinds, the Central government had sought a direction to appoint 15 persons as directors to the General Committee of the Club/Company to manage its affairs. The plea was thus allowed.
Case Title: Union of India, MCA v Delhi Gymkhana Club