NCLAT upholds order to allow govt to takeover Delhi Gymkhana Club's mgmt

Appellate tribunal NCLAT has upheld an order to allow the central government to take over the management of the prestigious Delhi Gymkhana Club. The National Company Law Appellate Tribunal (NCLAT) set aside the petition filed by the erstwhile management members against the order passed by the Principal Bench of the NCLT. On April 1, 2024, the NCLT allowed the plea filed by the Ministry of Corporate Affairs for taking over the Delhi Gymkhana Club management citing "violations" of the Company Law and said there was "sufficient material" for holding that, as it is a case of mismanagement. In its 149-page order, the NCLT had also allowed the ministry to nominate 15 persons as directors on the club's general committee as well as manage the affairs of the club. The said order was challenged before the appellate tribunal, which has been now upheld on Monday by a two-member bench, comprising Chairperson Ashok Bhushan and Member Arun Baroka. However, the NCLAT bench also also directed the