NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has reaffirmed the Central government’s takeover of the esteemed Delhi Gymkhana Club, rejecting appeals against a previous ruling by the National Company Law Tribunal (NCLT) that granted the government authority to manage the Club and appoint a 15-member committee for its oversight.
The bench, led by Chairperson Justice (retd) Ashok Bhushan and Technical Member Arun Baroka, instructed the government-appointed committee to implement all necessary corrective measures mandated by the NCLT by March 31, 2025. Following this, elections for new representatives to lead the Club must be conducted within three months.
In its ruling, the NCLAT said that the committee must operate in accordance with the Club’s Memorandum and Articles of Association. This decision brings an end to a two-year legal dispute initiated by former members of the club’s management, who opposed the government’s intervention.
The NCLT had previously favoured the government’s petition, filed under Sections 241 and 242 of the Companies Act, 2013, which cited mismanagement and actions that were contrary to public interest. Allegations against the Club included financial irregularities and biased admission practices, described as “parivaar-vaad” (dynastic favouritism).
The NCLT agreed with the Centre’s assertion that instances of mismanagement and arbitrary financial practices had occurred in the club’s collection of funds, which were in violation of both the club’s governing documents and the Companies Act.