New Delhi, Dec 30 : Two permanent members of Delhi Gymkhana Club have moved the National Company Law Tribunal (NCLT) citing internal mismanagement and oppression at the club, and sought a direction to conduct fair and proper election of the general committee scheduled on December 31.
The petitioners urged the tribunal to direct the club to restrain the permanent members who became members through the channel of usage of club premises (UCP) from participating in elections as candidates.
The club is governed by an elected board of directors known as the general committee, which is headed by a president, and their tenure is one year.
Petitioners, Raj Kumar Caprihan and Inderjeet Singh, moved the tribunal through advocates Sanyam Khetarpal and Utkarsha Kohli, citing a slew of issues: violation of articles, financial irregularities, oppressive actions and mismanagement by the governing board at the club.
The club’s AGM is scheduled on December 31, with the agenda of electing a new board/ general committee.
“The ever-increasing number of permanent members through the UCP route has resulted in a gross distortion of a fair and proper election process and given the power in the hands of those who have already violated the AoA as well as the law of the land,” said the plea.
The plea contended that the club has been continuously functioning in an opaque and evasive manner, thereby oppressing its member’s interest.The petitioners claimed there is huge discrepancy between membership/ entrance fee amongst children of permanent members who have applied for the club.
The children of permanent members who possessed a dependent card are being charged Rs 5 lakh whereas children of some permanent members who did not have dependant cards are being charged Rs 22 lakh.
“This discrepancy and disparity are only being created by the general committee to give the club a dynastic tenor which is inequitable and against the MOA and AoA,” said the plea.
The plea said the total number of permanent members of the club is 5,600.
However, through illegal usage rights created under the garb of UCP (usage of club premises), Y-cards, etc., several other people or families are using and enjoying the facilities of the club.
Citing financial irregularities, the petitioners contended that the general committee authorized a sum of Rs 1.5 crore for legal expenses towards the case filed by Ministry of Corporate Affairs (MCA) against the club, which was exceeded and an amount of Rs 2.25 crore was spent.
The petitioners argued that through a June 30 email, 170 permanent members raised the issue of not appealing the June 26 order of the tribunal, and cited that club finances could not support such heavy expenditure on legal fee.
The petitioners have impleaded MCA as a party in the matter.
“The internal mismanagement and oppressive tactics being employed by certain members and non-members (UCP’s, Y-card holders, employees/agents etc.,) to abuse the resources of the club and thereby jeopardizing the interests of those are innocent in the entire scheme of financial frauds, election mismanagement, siphoning of funds, misappropriating funds, embezzlement, misuse of member’s money, hiring of accounting and legal consultants in an unfair and nepotistic manner and not proving any details of remuneration given to these consultants etc,” said the plea.
The petitioners said the usage rights of the club are being given to the children of UCP’s, who are not even permanent members of the club, instead they are merely applicants to the club.
“The applicants are also personally aggrieved as there is discrimination among members, as the children and grandchildren of few are enjoying the club facilities whereas the children of the applicants have to be entered as guests,” contended the plea.
According to the plea, the club converts existing green card holders, children of existing permanent members, to UCP’s and accelerates their membership even though they have applied much applied much after those applicants whose names are yet to be considered.The inevitable consequence of such practice is giving the club a nature of dynastic membership or as per MCA parivaarvaad, said the petitioners.
The plea argued that the delay in the process of applications, such as of the applicants, and 1,000 such permanent members, has led to the consequential denial of usage of the club to the children of such permanent members, merely because they exceeded 21 years age when their parents acquired membership.
In June, the NCLT had declined to suspend the General Committee (GC) of the Delhi Gymkhana Club and also the appointment of administrator as sought by the Centre, instead directed the Centre to appoint two of its nominees in the GC to monitor the affairs of the Club along with other GC Members and give suggestions.
In July, the Centre had filed an appeal challenging the NCLT, which allowed it to appoint two members (central government nominees) to the Board (General Committee) of the Delhi Gymkhana Club (DGC), instead of appointing an administrator to manage the affairs of the club.
The MCA had argued that the violations are of extremely serious and grave nature, which indicates the GC (General Committee) members have been acting autocratically to the benefit of a few chosen members of the club in a hereditary manner, at the expense of the general public
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