The National Company Law Tribunal (‘NCLT’) green flagged Central government’s decision to take over the management of the Delhi Gymkhana Club (‘Club’), initially registered as a Section 8 company with specific objects related to sports and pastimes, for mismanagement of affairs. Over the years, the Club digressed from its objects and got into the grip of a clique from bureaucracy and army, with members continuing in the general committee for longer intervals. NCLT remarked that, “Some have been continuing from one period to another, giving credence to the stand of the central government that the club is run in the nature of ‘parivarvaad’ (nepotism), which cannot be countenanced in the light of the provision of the Companies Act.”