NCLAT suspends Delhi Gymkhana Club basic committee

The National Company Law Appellate Tribunal (NCLAT) on Monday suspended the final committee of the Delhi Gymkhana Club and requested the central authorities to nominate an administrator to handle the affairs of the membership within the interim. A 3-member Bench, led by performing NCLAT chairperson Justice Bansi Lal Bhat, in its judgment, additionally mentioned that the membership shall, within the interim, not settle for any new membership or price from the members.
The NCLAT was listening to a plea moved by the Centre which had challenged an order by the principal Bench of the National Company Law Tribunal (NCLT). In its order final June, the NCLT had, whereas refusing to droop the whole basic committee of the Delhi Gymkhana Club, requested the Centre to nominate two members to the managing committee as a substitute.
Aggrieved by the order, the Centre had, in its plea earlier than the NCLAT, mentioned that appointing two members to the final committee didn’t give it “effective and efficacious remedy to stem the rot” current within the Gymkhana Club.
Last April, the Ministry of Corporate Affairs (MCA) had moved the NCLT alleging that the membership’s affairs had been being run in a fashion “prejudicial to public interest”. The Delhi Gymkhana Club is registered as an organization underneath part 8 of the Companies Act.

Among varied different prices, the MCA alleged that the membership had over the course of time grow to be a den of nepotism and gave preferential remedy in membership solely to current members and their youngsters.
Due to varied complicated guidelines round admission to membership, the membership was constantly denied to candidates, whereas the applying price they submitted was utilized by the membership for its actions, the MCA had alleged.