Delhi Gymkhana Club says govt petition seeking management control 'misplaced, not maintainable'

Delhi Gymkhana Club has refuted the government's allegations that the club's affairs are being mismanaged by the former's general committee and said the Centre's petition seeking management control is completely "misplaced".

On April 24 the National Company Law Tribunal (NCLT) had issued notices to the Delhi Gymkhana Club and its general committee (GC) managing its affairs, over a government petition seeking management control of the facility.

In its reply filed before the NCLT,the Delhi Gymkhana Club, a sprawling facility in the Lutyens zone of the national capital, has alleged that the petition filed by the government is "completely misconceived, misplaced and not maintainable".

The club has also questioned the urgency to move such a petition during the lockdown by the Ministry of Corporate Affairs and said that there is no element of public interest involved here.

"What is equally disturbing is the manner in which the petitioner has sought to move this petition, namely ex-parte, without service of an advance copy upon the answering respondent. This act itself smacks of malafides as indeed, does the petition itself," it said.

The government, through an urgent petition moved by the Ministry of Corporate affairs (MCA), had alleged "fraudulent and rampant mismanagement" by the general committee, besides others, and sought to take over the management control under section 241 and 242 of the Companies Act, 2003.

The club in its reply said that its present membership is neither heritable nor transferable as it is a company limited by guarantee.

In its petition, the government had alleged practice of hereditary succession mode of membership terming it as "parivaar-vaad" (nepotism) and "minimal adherence to the democratic ethical practise".

Rejecting it, the club said the present general committee, managing its affairs, is "duly elected" by the members of the club and said that all allegations are related to "a period prior to the present GC got elected".

Moreover, in connection with election of membership, the club has always followed the traditional procedure as per the past practice and there is no violation of its article of association (AoA).

"Accordingly, the club has never breached the provisions of its AoA in relation to election of the members, including issuing green cards from time to time," it said.

Over the complaints received by the other members over the affairs, the club said "they are results of having lost the elections and other individual grievances and are disgruntled members".

Delhi Gymkhana Club has also strongly objected to the use of word "fraud" by the government in its petition regarding collection of registration free for applying membership.