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The Delhi Gymkhana Club, incorporated u/s 26(1) of the Companies Act, 1913, was formed to promote sports and other useful objects in public interest. The Central Government filed an application u/ss 241-242 of the Companies Act, 2013, alleging the club's affairs were conducted prejudicially to public interest. The NCLT, based on inspection reports highlighting violations and minimal sports expenditure, superseded the management by appointing a 15-member committee nominated by the Central Government. The NCLAT upheld the NCLT's order, finding sufficient material for the Central Government's opinion u/s 241(2) that the club's affairs were prejudicial to public interest. However, to bring an end to the matters complained of, the NCLAT directed the committee to complete remedial measures by 31.03.2025 and conduct elections per the Articles of Association within three months thereafter, installing the duly elected General Council to manage the club's affairs in accordance with its objectives.
The Delhi Gymkhana Club, incorporated u/s 26(1) of the Companies Act, 1913, was formed to promote sports and other useful objects in public interest. The Central Government filed an application u/ss 241-242 of the Companies Act, 2013, alleging the club's affairs were conducted prejudicially to public interest. The NCLT, based on inspection reports highlighting violations and minimal sports expenditure, superseded the management by appointing a 15-member committee nominated by the Central Government. The NCLAT upheld the NCLT's order, finding sufficient material for the Central Government's opinion u/s 241(2) that the club's affairs were prejudicial to public interest. However, to bring an end to the matters complained of, the NCLAT directed the committee to complete remedial measures by 31.03.2025 and conduct elections per the Articles of Association within three months thereafter, installing the duly elected General Council to manage the club's affairs in accordance with its objectives.
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