The National Company Law Tribunal (NCLT) has allowed the Central authorities to take over the administration of Delhi Gymkhana Club and nominate 15 individuals as administrators of the overall committee of the membership.
Holding that the membership was being run within the nature of “parivarvaad”, a two-member Bench, led by NCLT President Justice Ramalingam Sudhakar, stated there was ample proof to for holding that “it is a case of mismanagement for the affairs of the company and the general council members of each financial year have been propagating the same violations year after year”.
“The continued conduct of the governing body of the company whose acts are prejudicial to the public interest and against the interest of the company justify that the company of this kind should be wound up,” the tribunal famous in its judgment. In April 2020, the Ministry of Corporate Affairs (MCA) had moved a plea earlier than the NCLT {that a} administration committee appointed by the federal government ought to instantly take over Delhi Gymkhana Club as there was “fraudulent and rampant mismanagement of affairs” prevalent on the century-old membership.
In its plea, the MCA had additionally requested that the membership ought to be barred from accepting new members and a brand new 15-member government-appointed committee ought to handle the membership. The MCA had stated that since Delhi Gymkhana Club was initially registered as Section 8 Company and had obtained land on lease from the federal government, the federal government ought to be allowed to supersede the membership’s board below Sections 241 and 242 of the Companies Act.
