NCLT asks Delhi Gymkhana Club to file reply on Centre's plea seeking management control

The National Company Law Tribunal on Friday asked Delhi Gymkhana Club Limited to file its reply on a petition by the Central government seeking a change in the facility's management and appoint 15 nominees as administrators.

The tribunal asked the club to file its response by May 8 and slated the matter for further hearing on May 13.

The petition, filed by the Ministry of Corporate Affairs, prayed that the Central government be allowed to nominate 15 persons, to be appointed as directors on the general committee of the company to manage its affairs.

The plea also sought directions to immediately suspend the General Committee of Delhi Gymkhana Club Limited and appoint a Central government nominated administrator.

It said that an inspection report dated July 31, 2019, and supplementary inspection report dated March 3, 2020, are evidence of rampant, deep-seated mismanagement of the company by the General committee over the years.

"The lapses, misuse, circumvention of the law, absence of procedure and non-adherence to the law are too many, repeated and continued in nature and fact, cannot be passed off as negligence of duty or service," the plea stated.

"There has been consistent lack of transparency, absolute disregard to integrity and minimum adherence to democratic and ethical practices for which a company/club of this nature has been promoted by the government by giving the status of Section 8 company and misuse of a huge land property having enormous potential for the nation," it added.

The petition said that the matter deserves the urgent indulgence of the tribunal under Sections 241 (application to the tribunal for relief in cases of oppression) and 242 (powers of the tribunal) of the Compes Act, 2013.

Section 241 of the act pertains to any member of a company who complains that the affairs of the company have been or are being conducted in a manner prejudicial to the public interest or in a manner prejudicial or oppressive.

( With inputs from ANI )

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