The Supreme Court on Tuesday allowed 11 members of the Delhi Gymkhana Club to approach the Delhi High Court with their concerns over the Centre’s takeover of the club’s management and proceedings to evict it from its 27.3-acre premises.
A bench headed by Chief Justice Surya Kant and comprising Justices Joymalya Bagchi and V Mohana disposed of the members’ plea, granting them the liberty to either file a fresh petition before the high court or intervene in an existing case concerning the club’s eviction.
Senior advocate Vikas Singh, appearing for the members, told the court that a Centre-nominated committee was currently running the club and, therefore, could not effectively challenge the government’s actions.
He also alleged that the committee had overstayed the timeline set by the National Company Law Appellate Tribunal (NCLAT) for holding elections and restoring elected management.
The members have challenged the Centre’s May 22 resumption notification issued through the Land and Development Office (L&DO), as well as a June 29 show-cause notice seeking to initiate eviction proceedings against the club.
The petitioners have alleged that the Centre’s actions amounted to a “colourable exercise” of power and violated their fundamental rights under Articles 14 and 19, besides their right to property under Article 300A of the Constitution.
They have also questioned the Centre’s takeover of the club’s management, alleging that the government first secured control through a nominated committee and subsequently initiated steps to resume the leased land and evict the club.
The May 22 notification terminated the perpetual lease executed in 1928 and directed re-entry into the premises. The Centre cited defence infrastructure, public security, institutional and governance needs, and other public-interest projects as reasons for the move.
The petitioners, however, have contended that the notification did not identify any specific project or disclose the material relied upon to justify the takeover. They also claimed that no compensation had been offered and that the Ministry of Defence had not endorsed the decision.
The dispute over the club’s management dates back to proceedings under Sections 241 and 242 of the Companies Act, 2013. In April 2022, the National Company Law Tribunal superseded the club’s elected general committee and allowed the Centre to nominate 15 directors.
The NCLAT, in October 2024, directed remedial measures and elections to restore an elected general council. The petitioners have alleged that these directions have not been implemented and that the matter remains pending before the Supreme Court.
The club is also facing separate proceedings over revised ground rent. The L&DO raised a demand for Rs 47.59 crore in arrears in April, which has been challenged before the Delhi High Court.
On September 3, the Centre told the high court in a separate case that it would not take coercive action against the club in relation to its eviction from the Safdarjung Road premises till September 16.
(With inputs from PTI)
