Centre Tells Delhi High Court It Won't Forcibly Take Over Delhi Gymkhana Club On June 5 Deadline

(MENAFN- Live Mint) The Union government told the Delhi high court on Tuesday that it would not forcibly take possession of the 113-year-old Delhi Gymkhana Club on 5 June and that taking over the premises would be done only in accordance with the procedure established by law.

A bench of Justice Avneesh Jhingan recorded the government's statement and noted that the assurance was satisfactory. The court passed an order observing that no further directions were required at this stage and granted interim protection to club members who challenged the government's eviction notice.

The order was passed during the hearing of petitions challenging the Centre's eviction notice directing the club to hand over its 27.3-acre Safdarjung Road premises by 5 June.

The high court issued summons to the Union government and other parties, directing them to file their replies within eight weeks.

Appearing for the Union government, solicitor general Tushar Mehta clarified that the 5 June date was only an option for voluntary handover by the lessee and not a deadline for forcible takeover.

“It's not that the police will rush in and forcible possession will be taken over. It will have to be taken over in accordance with the procedure established by law,” Mehta submitted.

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He informed the court that Clause 4 of the lease deed contains a compensation mechanism.

“The compensation can either be in terms of money, or the government can even offer an alternative plot of land where they can shift and continue the same activities,” Mehta said.

Derivative action

During the hearing, senior advocate Abhishek Manu Singhvi, appearing for the members, argued that their petition had been filed as a derivative action backed by over 500 members, contending that the club management itself was under significant government influence following intervention by the ministry of corporate affairs and the appointment of nominated directors.

A derivative suit is a legal claim brought by a shareholder or partner on behalf of a company.

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Singhvi argued that the Delhi Gymkhana Club is a Section 8 non-profit company and its members stand in a position similar to minority shareholders, enabling them to maintain a derivative action where the management cannot independently challenge the takeover.

Senior advocate Kapil Sibal, appearing for member Major Atul Dev, argued that the lease clause relied upon by the government predates the Constitution and cannot override constitutional safeguards. He further argued that members were authorized occupants and could not be dispossessed without due process.

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The challenge arises from the 22 May order issued by the Land & Development Office under the ministry of housing and urban affairs, invoking Clause 4 of the 1928 lease deed to take over the club premises on grounds including national security, defence infrastructur and public-interest projects.

The petition, which Mint reviewed earlier, argued that the government failed to disclose any specific project, urgency or material explaining why the entire property was required. It alleged the notice contained only“vague and omnibus assertions” without identifying any concrete public purpose.

The plea contended that the move was“the last in a series of acts by the government to gain control over the institution, including a recent attempt to take over the management of the institution.”

Established in 1913, Delhi Gymkhana is among India's oldest elite clubs. The club has been at the centre of governance litigation since 2020, following intervention by the ministry of corporate affairs, which led to government-appointed administration and nominated directors taking charge. Separately, it faced lease-related disputes, including notices over alleged violations and unpaid ground rent dues of about ₹47.58 crore, making the eviction order the latest chapter in a long-running tussle between the government and the club.

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