The Delhi High Court on Monday sought the response of the Central government on applications challenging the eviction proceedings initiated against the Delhi Gymkhana Club from its 27.3-acre premises in Lutyens’ Delhi under the provisions of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.
The single-judge Bench of Justice Avneesh Jhingan issued notice to the Centre and listed the matter for further hearing on July 28 after recording the Union government’s assurance that no coercive action would be taken against the Club until the next date of hearing. The Court also noted the Centre’s statement that the personal hearing before the Estate Officer, originally scheduled for July 7, would be adjourned.
The applications have been filed by Delhi Gymkhana Club member Vijay Khurana and the Delhi Gymkhana Club Limited Staff Welfare Association in the pending writ petitions challenging the Central government’s decision to terminate the Club’s perpetual lease.
Appearing for the Union government, Solicitor General Tushar Mehta informed the Court that copies of the applications had been served only a day earlier and sought time to file a reply. He submitted that the applicants could seek an adjournment before the Estate Officer until the High Court hears the matter on July 28.
The dispute arose after the Land and Development Office (L&DO) terminated the Club’s perpetual lease on May 22 and directed it to hand over possession of the property by June 5, stating that the land was required to strengthen and secure defence infrastructure.
The government subsequently initiated eviction proceedings by issuing a show-cause notice through the Estate Officer under the Public Premises (Eviction of Unauthorised Occupants) Act, requiring the Club to explain why an eviction order should not be passed.
The petitioners have challenged the validity of the eviction proceedings, contending that the show-cause notice was premature because it proceeded on the assumption that the termination of the perpetual lease was lawful, even though the legality of that decision was already pending consideration before the High Court.
They have sought a stay of the eviction proceedings, maintenance of status quo regarding possession and functioning of the Club, or, alternatively, protection against any final eviction order or coercive measures until disposal of the pending petitions.
Khurana has also questioned the Centre’s reliance on the requirement of strengthening defence infrastructure, arguing that the justification is vague, generalised and merely a pretext for evicting the Club without following due process of law. According to the applications, the challenge has the support of more than 500 Club members.
The Club has been functioning on the property under a perpetual lease granted in 1928. Clause 4 of the lease deed reserves the lessor’s right of re-entry if the land is required for a public purpose, a provision on which the Government has relied while terminating the lease.
The present dispute follows earlier proceedings before the National Company Law Tribunal (NCLT), where the Central government, in 2022, alleged violations of the lease conditions and mismanagement in the affairs of the Club. The NCLT accepted the government’s plea and directed the appointment of 15 government-nominated members to manage the Club’s day-to-day affairs. The order was subsequently upheld by the National Company Law Appellate Tribunal (NCLAT).
The High Court had earlier considered the challenge to the lease termination in May but declined to grant interim relief after the Solicitor General assured the Bench that no forcible possession would be taken and that any action would be undertaken strictly in accordance with the procedure established by law. Following the subsequent issuance of the eviction notice by the Estate Officer, the petitioners filed the present applications seeking protection against further proceedings.
After recording the Centre’s undertaking that no coercive action would be taken and that the proceedings before the Estate Officer would remain deferred, the High Court directed the Union government to file its response and fixed the matter for hearing on July 28.
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