Centre takes over Gymkhana admin
The National Company Law Appellate Tribunal (NCLAT) on Monday dissolved the governing council of the Delhi Gymkhana and appointed an administrator to check “mismanagement” even as the case that will decide the future of one of the Capital’s hoary old clubs continues at the National Company Law Tribunal (NCLT). MM Juneja, director general, ministry of corporate affairs, took charge of the club. The order criticised the club for “perpetuating apartheid .... under the garb of distinctive character”. The president of the disbanded Delhi Gymkhana governing council, Air Marshal (retd) PS Ahluwalia, said the club will file an appeal in the Supreme Court. The club has been embroiled in a legal battle for nearly four years, with the ministry citing nepotism, financial irregularities and issues related to membership as the reasons behind its move to take over the club.
IN A SCATHING INTERIM JUDGMENT, THE TRIBUNAL SAID THAT THE CLUB STILL HAD AN “IMPERIAL MINDSET”, CONTINUED TO EMBRACE A COLONIAL PAST
NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday dissolved the governing council of the Delhi Gymkhana and appointed an administrator to oversee and check “mismanagement” even as the case that will decide the future of one of the Capital’s hoary old clubs continues at the National Company Law Tribunal (NCLT) .
M.M. Juneja, director general of the Ministry of Corporate Affairs, took charge of the club on Monday, “As of now we have implemented the order and will look into the issues,” Juneja said. “The case will go on further on merit in the NCLT.”
The order criticised the club for “perpetuating apartheid .... under the garb of distinctive character”.
President of the disbanded Delhi Gymkhana governing council, Air Marshal (retd.) PS Ahluwalia, said the club will file an appeal in the Supreme Court against the order. “It is incumbent on behalf of the members to challenge the judgment in the Supreme Court and argue the merits of our case.”
People familiar with the matter at Delhi Gymkhana said the government’s move to appoint an administrator with immediate effect may keep the club from seeking stay on the order from the Supreme Court. “Whether or not there is an appeal, the club’s management now lies with the government,” one of these people said on condition of anonymity. “The president informed the forum of members on Whatsapp that the council has been disbanded and the detailed judgment will soon follow.”
The club has been embroiled in a legal battle for nearly four years, with the ministry of corporate affairs citing nepotism, financial irregularities, misuse of allocated land and issues related to membership as the primary reasons behind its move to take over the Delhi Gymkhana club.
“Prima facie evidence of mismanagement has been found,” said a senior ministry of corporate affairs official who asked not to be named. “The court has found that it is prejudicial to public interest and has asked for a government administrator to be appointed.”
“We are of the considered opinion that the impugned order, in so far as finding in regard to existence of a prima facie case demonstrating that the affairs of the club are being conducted in a manner prejudicial to public interest, does not suffer from any legal infirmity,” the order of NCLAT said . HT has reviewed a copy of the order.
HT reported on June 27 that Gymkhana club argued that the functioning of the club was not “prejudicial to public interest” as it is “purely a private club”. All private clubs are governed by their own rules. “It is not a public place such as the Lodhi garden or public marketplaces where the government can even levy parking fees,” a Gymkhana official said then.
The appellate tribunal’s order also stayed the club from accepting new membership applications till the waitlist is cleared or increasing fees until NCLT delivers the final judgement.
In an interim order, NCLT on June 26 asked the government to appoint two nominees to the governing body of Delhi Gymkhana Club and set up a fivemember committee to look into the alleged “irregularities”.
In a scathing interim judgment, the tribunal said that the club still had an “imperial mindset”, continued to embrace a colonial past and pandered to the privileged and elite . “It is on record that soon after independence, the caption “Imperial” is wiped off from the name of the club, but I doubt whether it has been wiped off from its mindset,” stated the judgment. “It is not a barb against the club…. there is no space to commoners unless they are positioned on the highest pedestal …”
The interim order was challenged by both MCA and Delhi Gymkhana in NCLAT. MCA thought the order was inadequate and the club wanted it overturned.