The Supreme Court on Tuesday permitted 11 members of the Delhi Gymkhana Club to approach the Delhi High Court to challenge the Central government’s takeover of the club’s 27.3-acre Safdarjung Road estate and its subsequent eviction proceedings.
Disposing of the petition submitted by Vipin Aggarwal and 10 other members, a three-judge bench led by Chief Justice Surya Kant, alongside Justices Joymalya Bagchi and V Mohana, granted the petitioners liberty to initiate a fresh plea before the High Court or to join an existing lawsuit concerning the eviction. The bench clarified that the High Court will evaluate any fresh petition on its merits.
Conflict Over Dual Administrative Control
Appearing for the members, Senior Advocate Vikas Singh told the court that because a government-appointed committee is currently running the club, the institution cannot mount an independent legal challenge against the state. Singh submitted that both the lessor and lessee are now under government control, describing the takeover as an improper move. He added that the nominated administrators had exceeded the timeframe set by the National Company Law Appellate Tribunal for holding elections and restoring elected governance.
The petitioners, who moved the court through advocate Nitin Saluja, also pointed out that rather than defending the club’s rights against the lease termination and eviction directives, the interim management had instead requested an alternative plot of land.
Grounds of Challenge to Lease Cancellation
The petition sought the revocation of a May 22 resumption order issued by the Land and Development Office, as well as a June 29 show-cause eviction notice served under the Public Premises Act by an estate officer. The members argued that the executive action represented a colourable exercise of authority, violating fundamental protections under Articles 14 and 19 of the Constitution alongside property rights under Article 300A.
According to the plea, the May 22 order cancelled a perpetual lease established in 1928 and authorized re-entry, citing institutional requirements, governance facilities, public-interest initiatives, and the strengthening of defence and public security infrastructure. The petitioners maintained, however, that the notification omitted details of any specific project, failed to disclose supporting justification, provided no compensation, and lacked backing from the Ministry of Defence.
Corporate Proceedings and Financial Demands
The dispute traces back to government intervention under Sections 241 and 242 of the Companies Act, 2013. On April 1, 2022, the National Company Law Tribunal dissolved the elected committee and permitted the Centre to appoint 15 directors. The appellate tribunal subsequently issued directions on October 21, 2024, requiring corrective measures and the conduct of fresh elections, though the petition noted that those directives remain unexecuted pending appeals before the Supreme Court.
In addition to the takeover proceedings, the club faces a retrospective revision of ground rent by the Land and Development Office. A demand for Rs 47.59 crore in outstanding dues was issued on April 16, which is already under legal challenge before the High Court.
Status of High Court Proceedings
The High Court is already seized of connected petitions filed by member Vijay Khurana and others seeking a stay against the June 29 eviction notice. In that matter, the Centre informed the High Court on September 3 that it would refrain from taking coercive eviction measures regarding the Safdarjung Road grounds until September 16.
