NCLT allows Centre to take over Delhi Gymkhana Club & appoint 15 directors

New Delhi: A Principal Bench of the National Company Law Tribunal has now allowed the Union government's petition to take over administrative control of the Delhi Gymkhana Club here by nominating 15 persons to function as directors and manage the club's affairs.

While the Union government had alleged several irregularities in the running of the club - such as partiality towards certain members and an "undemocratic" manner of allowing memberships, the Delhi Gymkhana Club had questioned the very maintainability of the plea, arguing this was not a matter of public interest.

The club's management had said that the petition was concerned about the cause of only a few members of the club.

While the NCLT had earlier already cleared the way for the Centre to increase its presence in the club's general committee, the most recent order by Justice R Sudhakar and Narendra Kumar Bhola gives all administrative control of the club to the Union government.

The NCLT has found that the club was not generating any income from sporting activities, which was one of its main objectives, legal news website LiveLaw reported, adding that the club was also allegedly taking donations from outsiders, which was a violation of the Companies Act.

On the club's contention that this was not a matter of public interest, the NCLT Bench ruled that this was indeed of public interest as the Club functions on public property of the Government for which rent is a meagre sum of Rs 1,000 per month (for 27 acres in the heart of Delhi).

Directing the Union government to appoint the 15 Directors for the Delhi Gymkhana Club, the NCLT Bench also mandated them to take corrective measures in the club's administration.

While the club had contested an earlier NCLT decision to have a government-appointed administrator for the club, the top court had left the matter to the NCLT, asking it to decide it within a fixed timeframe.