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MCA Vs Delhi Gymkhana Club
The Central Government was directed to constitute a special committee to look into the functioning of the Delhi Gymkhana Club by The National Company Law tribunal.
The Principal bench, which is headed by Acting President BSV Prakash Kumar has further instructed the general committee of the club to abstain from carrying out the following activities-
1) proceed with any construction on site
2) make any policy decision make any changes to the Memorandum of Association or Articles of Association
3) utilize funds received from members
4)conduct balloting
The general committee is allowed to carry out day to day activities using funds other than the fee levied from members.
The order was based on a petition filed by The Ministry of Corporate Affairs against the general committee of the club.
The action was taken as per section 241(2) of the Companies Act, 2013, stating that the club functioned in a manner that is prejudicial concerning public interest.
The Central Government has therefore sought the direction of the Tribunal to allow it to appoint 15 persons as Directors on the Club's General Committee to manage its affairs and to report to this Tribunal on such matters as it may guide, including the restructuring of the Club.
Although maintaining that the club's affairs are, prima facie, conducted in a manner detrimental to the public interest, the Tribunal directed the Center to nominate two of its chosen candidates as members of the General Committee to track the Club's affairs along with other members of the GC and to make recommendations to the GC.
The Tribunal has further directed: 'direct the Union of India to constitute a Special Committee with five Members of its choice to enquire into the affairs of the Club, the utility of the land leased out by the State, with regard to constructions in progress without requisite approvals or with approvals, suggestions for changes in Articles and Memorandum of Association, membership issues including waitlist and about accelerated membership, adherence of the Club to the Rules governed by Section 8 of the Companies Act 2013 and other miscellaneous issues if any and file report of recommendations suggesting for better use of the club premises for the larger good in a transparent manner on equity basis within two months hereof.'
