Gymkhana Club: SC directs preservation of CCTV footage till further orders

The Supreme Court Thursday took serious note of the allegation that the records of the Delhi Gymkhana Club were being destroyed and directed the administrator of the club to ensure that CCTV footage of its premises is preserved until further orders.

The apex court termed as “serious” the grievance made regarding alleged destruction of records in the club’s office.

A bench headed by Justice A M Khanwilkar was hearing the pleas, including those against the February 15 order of the National Company Law Appellate Tribunal (NCLAT) which had directed suspension of the Delhi Gymkhana Club's general committee and asked the government to appoint an administrator.

At the outset, an advocate appearing for the administrator of the club told the top court that they have circulated a letter seeking short adjournment as the arguing counsel was not well.

The bench, also comprising justices Dinesh Maheshwari and C T Ravikumar was told by the counsel appearing for a “whistle-blower” that the appellant was terminated without the due procedure being followed.

“What is being done is they are destroying the evidence,” he told the bench, adding that the administrator has been changed three times and several people have been removed.

When the counsel representing the administrator claimed these are not “correct statements”, the bench observed, “Does not matter, there is no harm in accepting this suggestion that recording is preserved.” Solicitor General Tushar Mehta, who was representing the Centre, said the administrator is appointed by the Central government.

He said he would convey the suggestion and footage of CCTV installed there would be preserved.

“It is a serious grievance. If the record is destroyed, what remains in the inquiry then,” the bench said.

“Nothing is impossible Mr. Solicitor General. If there is grievance made, there must be some basis for it,” the bench said, adding, the administrator should ensure that nothing of that kind is permitted in the office.

The bench noted in its order that one of the appellants in the matter has expressed apprehension that “someone is trying to destroy or manipulate the record in the office”.

“It is not necessary for us to examine this grievance at present. However, since CCTV camera is installed in the premises, including the office premises, we direct the administrator to ensure that the CCTV camera footage/recording from today onwards is preserved until further orders to be passed by this court,” the bench said and posted the matter for hearing next week.

The apex court made clear that no request for adjournment on the ground of non-availability on arguing counsel would be entertained at the instance of any party.

In its order passed in February, the NCLAT had also stayed acceptance of new club memberships till further orders.

It had observed that ''under the garb of the distinctive character of the club which is a relic of the imperial past, the doors for membership are virtually limited to people having blue blood in their veins thereby perpetuating apartheid and shattering the most cherished constitutional goal of securing social justice and equality of status and opportunity''.

The NCLAT order had come on petitions by the corporate affairs ministry as well as the club, and both of them had challenged an interim order passed by the National Company Law Tribunal (NCLT) in 2020.

The ministry was requesting for superseding the club's General Committee (GC) citing alleged oppression and mismanagement of the club's affairs.

Emphasizing that the interim relief must prove to be result-oriented, the NCLAT had modified the NCLT's order and directed ''suspension of the GC and appointment of an administrator to be nominated by the Union of India to manage the affairs of the club''.

Further, it had ordered that ''acceptance of new membership or fee or any enhancement thereof till disposal of waitlist applications be kept on hold till disposal of the company petition''.

''The observations made hereinabove are limited to grant of interim relief. The same shall not be construed as an expression of opinion on the merits of the case,'' the NCLAT had noted.

In its order passed on June 26, 2020, the NCLT had asked the government to constitute a five-member Special Committee to enquire into the affairs of the club and also to look into the issues related to the utility of the land leased out by the government, among other issues.

The ministry, in April last year, had moved the NCLT under sections 241 and 242 of the Companies Act, 2013, seeking to supersede the club's GC and also allow it to nominate 15 persons as directors to run the club's affairs.

Sections 241 and 242 of the Companies Act deal with oppression and mismanagement and give wide powers to the tribunal, which include removal of the managing director, manager, or any of the directors of the company and recovery of undue gains.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)