TMI Blog2016 (7) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... ce keepers of the State Association and BCCI in financial matters and matters related or incidental thereto which will in no way adversely impact the performance or working of the BCCI for the promotion and development of the game of cricket. The criticism leveled against the recommendations of the Committee is, therefore, unfounded and accordingly rejected. Recommendation made by the Committee regarding the formation of a Players’ Association. To the extent the recommendation provides for establishment of a Players’ Association neither the BCCI nor any other association who has intervened has found fault with the view taken by the Committee. What has come under criticism by the BCCI and its supporting associations is the financial assistance which the BCCI is required to give to such an association. On behalf of the BCCI it was contended that cricket players can indeed form an association which they are in any case entitled to form, but that exercise need not be at the expense of the BCCI. The recommendation for financial support to the association is thus all that has been faulted by the BCCI. It was also contended that there was no need for providing any representation for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her than such affairs being run on an ad-hoc basis. The Committee has, on that premise, recommended an administrative set up which it has evolved on the basis of its interactions with people who have the necessary expertise and insight into the needs of the BCCI and its associations. We, therefore, see no compelling reason for us to reject the recommendation made by the Committee, especially when the objective underlying the said recommendation is not only laudable but achievable through the medium of the change recommended by the Committee. In the result, we accept the report submitted by the Committee and the recommendations made therein with such modifications and clarifications as have been set out by us in the body of this judgment. Having said that we must hasten to add that the implementation of the recommendations is equally important and ought to be achieved within a reasonable period. The transition from the old to the new system recommended by the Committee shall have to be under the watchful supervision of this Court. - CIVIL APPEAL NO.4235 OF 2014, CIVIL APPEAL NO.4236 OF 2014, CIVIL APPEAL NO.1155 OF 2015 - - - Dated:- 18-7-2016 - T.S. THAKUR FAKKIR MOHAMED IB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Constitution of India as it was discharging important public functions. Building further on that finding, this Court had while dealing with Question No.7 set up a Committee comprising Justice R.M. Lodha, former Chief Justice of India as Chairman with Justice Ashok Bhan and Justice R.V. Raveendran, former Judges of this Court as members to determine and award punishment considered appropriate on those found guilty by Justice Mudgal s Committee and to examine for any disciplinary or punitive action, the role played by Mr. Sundar Raman with the help of the investigating team constituted for that purpose. More importantly we had requested the Committee to examine and make suitable recommendations on the following aspects: 119.1. Amendments considered necessary to the memorandum of association of BCCI and the prevalent rules and regulations for streamlining the conduct of elections to different posts/officers in BCCI including conditions of eligibility and disqualifications, if any, for candidates wanting to contest the election for such posts including the office of the President of BCCI. 119.2. Amendments to the memorandum of association, and rules and regulations consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning applications made by Mr. B.S. Bedi and Mr. Kirti Azad, Cricket Association of Pondicherry and several others have supported the recommendations made by Justice Lodha Committee. The recommendations are also supported by the respondent Cricket Association of Bihar, who has prayed for acceptance of the recommendations and issue of directions for appropriate follow up action in implementation of the same. 5. We have heard at considerable length learned counsel for the parties and those appearing for the intervenors. As noticed earlier the task assigned to the Committee was to recommend such changes in the rules and regulations of BCCI as would in the opinion of the Committee safeguard the interest of public at large in the sport of cricket, improve the ethical standards and discipline in the game, streamline and promote efficiency in the management of BCCI, provide accessibility and transparency, prevent conflict of interest situations and eradicate political and commercial interference and abuse and create mechanisms for resolution of disputes within the BCCI. The direction issued by this Court for all round reform in the working of the BCCI and the conduct of its affairs proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss and overall management and how measures exist to check conflict of interest and enforce ethics. 8. Based on the interactions held and the responses received from various quarters, the Committee identified the problem areas in the functioning of the BCCI, and upon an in-depth appraisal of the material and the interactive sessions held by the Committee came to the definite conclusion that BCCI has been suffering from many ills that had become endemic due to the apathy and involvement of those at the helm of the Board s administration. The Committee recorded a specific finding that the problems faced by the BCCI have been compounded by the involvement/association of many high functionaries in the Central and State Governments some of whom had remained in charge of the administration of the BCCI for several decades. It also came to the conclusion that many officials of the State Associations were holding power without any accountability and transparency by converting the Associations into personal fiefdoms. It found inequities writ large at the high table with some States over-represented in votes, tournament participation and central funding while others were made to wait endle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transparent manner bringing cricket back to its pristine form and restoring the confidence of the cricketers and lovers of the game alike. The Committee said: At a time when the nation s highest court has been compelled to find that the game has fallen into disrepute, only extraordinary steps will bring it back from this chasm. We are conscious that some of our proposals may evoke varied responses, but the collective conscience of this Committee is clear that tough measures are called for to restore Indian cricket to its pinnacle of glory. Individual interest will have to be sacrificed for the sake of the institution, and no exigency of convenience or convention shall stand in the way of a whole scale structural overhaul. The current governance structure of the BCCI and its Member Associations is far from satisfactory and it needs to be suitably restructured. Strict terms and tenures have to be imposed on administrators, oversight and audit of member associations need to be carried out, professional management deserves to be introduced in the administration of the game, all States require an equal say in the affairs of the BCCI, financial prudence has to be exercised, independ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presented on the BCCI One old State (Bihar) and two new states (Chhattisgarh and Uttarakhand) and six North-Eastern States (Sikkim, Manipur, Meghalaya, Nagaland, Arunachal Pradesh and Mizoram) are unrepresented on the Board. Of course, the most significant omission was Bihar, which, being the third most populous State in the nation required the cricket representatives of its 100 million populace to migrate to other States to ply their trade. Apart from Tripura, the other six sister-States of the north-east had been relegated to various categories of membership (Associate, Affiliate and Future) which really have no voice on the Board. b. Some States are over-represented Mainly attributable to their historic legacy, both Maharashtra and Gujarat have 3 Full Members, each representing parts of their respective States. Maharashtra therefore exercises votes through the Associations of Mumbai, Vidarbha and Maharashtra while Gujarat fields the Associations of Baroda, Gujarat and Saurashtra. c. Some members do not represent territories The Services Sports Control Board, the Railways Sport Promotion Board and All India Universities show that territorial division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee is of the view that it is not proper for only one or two States to have multiple members when all other States have single memberships (in fact, while many States have no representation). Democratic norms require each State should have equal representation, and therefore the Committee proposes the policy of One State One Member One Vote . In fact, this is the policy followed by other national sports associations (IHF AIFF), each of whose members have an equal vote regardless of size or population. Even at the international level (IOC FIFA), this is the position. Cricket ought to be no different. It was however also stated that as far as disbursement of funds by BCCI for cricket development, it need not be uniform, but can depend on the need, infrastructure and other relevant criteria, formalized as a clear and equitable policy to incentivize Members to develop the sport. In keeping with the above principle, and notwithstanding any sense of sentiment, there would also be no place for multiple associations from a single State. The Committee is of the view that it be left to the BCCI to decide which of the 3 associations from Gujarat and Maharashtra would be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the various zonal tournaments is concerned. However, this reconstitution is best left to the BCCI for the purposes of convenience and competition. It is also left to the discretion of the BCCI whether the Union Territories would field individual or combined teams for tournaments and whether, for the purposes of expediency and convenience, the teams representing the States of the North-East be combined as well. The categories of Affiliate and Future Members are therefore to be removed, and only Full Members and Associate Members will remain, the former with voting rights and the latter without. The 4 associations from the States of Maharashtra and Gujarat which would be relegated to the category of Associate Members shall, however, continue to receive grants for cricket development, as may be assessed by the BCCI depending on infrastructure and relevant criteria. They will also field teams in the domestic tournaments and host international matches. It is imperative that all players across the country have opportunities to represent their States and Zones and then the national team. To punish the innocent residents and players of a State for the real or perceived short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representatives of players and women, and a nominee of the Accountant General of the State. (iii) The Association shall grant automaticmembership to former international players hailing from the State. (iv) The Association shall not have proxyvoting. (v) There shall be a provision whereby theOffice Bearers of the Association stand disqualified under any of the grounds laid down in Rule 14(3) below. (vi) The Association shall appoint anElectoral Officer, an Ethics Officer and an Ombudsman. (vii) The Association shall abide by theprinciples of Transparency laid down in Chapter 8 of these Rules. 13. Rule 4 stipulates that each Full Member shall have one vote to be exercised through its authorized representative and that an Associate Member shall be entitled to participate in the General Body Meetings but shall not be entitled either to vote or have its representative elected to the Apex Council. 14. In terms of Rule 3(b)(1)(v) (supra), a person shall be disqualified to be an Office Bearer of any association on the grounds set out under Rule 14(3) which reads as under: 14.THE APEX COUNCIL (3) A person shall be disqualified from being a Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erests. b. Lack of competence The running of an organisation like the BCCI requires a clear functioning structure with well defined ideas to be executed. The present Working Committee of the BCCI consisting of the various office bearers elected by the BCCI and other representatives of the Members do not have any managerial expertise and requisite experience to run BCCI in a professional manner. Specialists and professionals are usually engaged in an ad-hoc manner without any terms and tenures as would be expected with any billion dollar entity. c. Overlap of diverse functions To borrow an analogy from political governance, it is necessary that the making of laws and regulations (legislative functions) are divorced from implementation thereof (executive functions) and those that review their validity or implementation (judicial functions). As far as the BCCI is concerned, the Working Committee not only lays down the relevant rules, regulations and bye-laws that govern the BCCI, but also oversee their implementation and takes final decisions when a Member or third party challenges either the rule or the manner of its implementation. These overlaps provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt later becoming the Treasurer. i. No disqualifications There appears to be no ground on which an office bearer has to demit office. No principles of conflict of interest, of age, of conviction by a criminal court or of holding an office under the Government has been laid down to disqualify an office bearer. Solutions The governance of the BCCI must be decentralised. No individual is more important than the institution, and so all crucial powers and functions hitherto bestowed exclusively on the President will have to be divided across the governing body, which is to be known as the Apex Council (with a special and separate governing body for IPL, known as IPL Governing Council). The issue of competence regarding those managing the game has to be addressed by bringing in professional managers and area experts, a theme which is discussed in detail in Chapter three. As the zonal rotation policy is without any rational basis, and as it has been decided to keep the State as the unit to become a Full Member, it is consistent to have a president who is elected from among the Full Members, so that the best and most competent person is selected. The provision f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Minister or government servant or holds any post of another sports body in the country. Any nominated Councillor however, would not have more than one term in office. The endeavour in this regard is to filter those who are able and enthusiastic to govern the game that is the national passion. 18. In Chapter three of its report the Committee has examined BCCI s need for reform in its cricketing and non cricketing management with the help of full time professionals with established skill-sets reporting systems, high-level IT solutions etc. The Committee has recommended that non-cricketing management ought to be handled by professional managers headed by a Chief Executive Officer at the top. Pure cricketing matters like selection, coaching and performance evaluation could however be left exclusively to ex players who have greater domain knowledge. In so far as umpiring is concerned the same could be handled exclusively by umpires. The Committee has with that objective recommended the following structure in place of the current management which is ill equipped to deal with issues of cricketing and non-cricketing management, thereby, adversely affecting its performance. The flow char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecific types of Conflict of Interest, and applied them to individuals employed with, or connected to the BCCI with the recommendation that every Office Bearer, Player, Councillor, Employee, Administrator, Team Official, Umpire or other person connected to the BCCI, its Members or the IPL and its Franchisees is mandated to avoid any act or omission which is, or is perceived to be, likely to bring the interest of the individual in conflict with the interest of the game of cricket. 23. In Chapter Seven, the Committee has dealt with need for Ombudsman, Ethics and Electoral Officer. The Committee notes that several disputes that exist within the BCCI are born out of years of apathy in governance and gross mismanagement. The Committee has found that the relationship between the Associations, on the one hand, and the BCCI, on the other, has rarely been equitable and balanced, with the latter exercising its hegemony over the former. The Committee has therefore recommended moderation of such relationship in an objective manner. The Committee has referred to the problems of disgruntlement and litigation in the States of Bihar, Rajasthan, Delhi and Jammu and Kashmir. The Committee has fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that those who seek greater information are either rebuffed by the Board or won over by enticements. The Committee has observed that those whose professional livelihood depends on cricket acknowledge the BCCI s total sway over the sport, and choose to remain silent rather than upset the apple cart. The Committee, therefore, recommends that players and the public, ought to have access to all rules and regulations, codes and instructions of the BCCI in English and Hindi and that the same should be uploaded on the official website of the BCCI. The Committee further notices that the commercial angle has overtaken the enjoyment of the sport, with advertisements continuing many a times even after the first ball and again commencing even after the last ball is played thereby interrupting the full and proper broadcast of the game. Regardless of the wicket that has fallen, century having been hit or other momentous event, full liberty is given by BCCI to the broadcasters to maximize their income by cutting away to commercial, thereby robbing the sport of its most attractive attribute emotion. The Committee, therefore, recommends that all existing contracts for international test and one-d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to determine whether State associations have actually expended their grants towards the development of the game and mark them on a report card which may be utilized to determine the financial support they deserve the following year. This oversight also needs to be considered in the opinion of the Committee because of the high and unreasonable expenditure incurred by the Board under various heads which deserves to be limited and streamlined. 30. In Chapter Nine of the Report, the Committee has dealt with the menace of match fixing and betting. The Committee has noted that there is a fundamental difference between betting and match/ spot fixing. While the latter interferes with the integrity of the game and attempts to change the course of the match, the former is a general malaise indulged by different sections of the society not only with reference to cricket but other games also. The Committee considers the match/ spot-fixing as unpardonable and opines that the only way to deal with the same effectively is to make it punishable by law. The Committee in that regard recommends appropriate amendment by the legislature. 31. As regards betting, the Committee has on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... social clubs be divorced from the administration of cricket which is a sombre task, that cricketers be made members and have a say in governance and that management be made professional. The State Associations must also create avenues to generate revenue, improve infrastructure and develop the sport, all of which will be marked through a detailed report card. There also has to be an audit and independent oversight of how resources are allocated and spent. It is necessary that all State Associations immediately transition to the use of tamper-proof accounting software which either does not permit alterations or which records all alterations made. The conflicts that arise by holding office both at the BCCI and in the State Associations ought to be brought to an end by automatic vacation of post at the local level when elected to the BCCI. Also, certain disqualifications have to be laid down that apply to those who seek office in the State Associations, along with limits on their tenures and terms. Corrective measures are to be brought into place so that professional managers will interface with the State Governments and attempt to rectify any prevailing shortfalls or drawbacks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and Rules Regulations, Bye-Laws and Office Orders and directions that govern the functioning of the Association, its Committees, the Ombudsman and the Ethics Officer. b. The list of Members of the Association as well as those who are defaulters. c. The annual accounts audited balance sheets and head-wise income and expenditure details. d. Details of male, female and differently abled players representing the State at all age groups with their names, ages and detailed playing statistics. e. Advertisements and invitations for tenders when the Association is seeking supply of any goods or services (exceeding a minimum prescribed value), or notices regarding recruitment, as also the detailed process for awarding such contracts or making such recruitments. f. Details of all goals and milestones for developing cricket in the State along with timelines and the measures undertaken to achieve each of them. g. Details of all office bearers and other managerial staff (including CEO, COO, CFO, etc.) h. Details of directives from the BCCI and their compliances. These websites will have to be maintained and updated at least on a quarterly basis. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent the recommendations made by the Committee in brief, the following synopsis of our proposals are set out: 1. Membership One State, One Vote Only cricket Associations representing the States would have voting rights as Full Members of the Board, thereby ensuring equality among the territorial divisions. Any other existing members would be Associate Members. 2. Zones Zones for Tournaments alone The Zones would be relevant only for the purpose of the tournaments conducted amongst themselves, but not for nomination to the governance of the Board or to the various Standing Committees. 3. State Associations State Associations - Uniformity in Structure The Associations that are the Members would necessarily have to restrict the tenures of office bearers and prescribe disqualifications, do away with proxy voting, provide transparency in functioning, be open to scrutiny and audit by the BCCI and include players in membership and management. They would also have to abide by the conflict of interest policy prescribed by the Board, and divorce the Association from the social club, if any. 4. Office Bearer Limited Tenures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... administered by the BCCI and the Players Cricket Association. 10. Conflict of Interest Avoidance of conflicts Detailed norms have been laid down to ensure there is no direct or indirect, pecuniary or other conflict or appearance thereof in the discharge of the functions of those persons associated or employed by the BCCI, its Committees, its Members or the IPL Franchisees. These norms shall be administered by an Ethics Officer. 11. The Ombudsman and the Electoral Officer Independent monitors Provision has been made to have an independent ombudsman to resolve grievances of Members, Administrators, Players and even members of the public as per the procedures laid down. Similarly, an independent Electoral Officer to oversee the entire electoral process is also mandated. 12. Functioning Transparency The BCCI must provide the relevant information in discharge of its public functions. All rules and regulations, norms, details of meetings, expenditures, balance sheets, reports and orders of authorities are to be uploaded on the website as well. 13. Oversight Accountability An independent auditor to verify how the Full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amended Rules and Regulations of the BCCI effectively combine the functions of the Ethics Officer and the Ombudsman within the scope of the Ombudsman s functions whilst omitting disputes between the BCCI and IPL franchisees, which are covered by existing arbitration agreements. The Hon ble Mr. Justice A.P. Shah, Former Chief Justice of the Delhi High Court, has been appointed as the Ombudsman and has taken cognizance of and disposed of several complaints already. (b) Avoidance of Conflict of Interest: The BCCI has formulated Rules on Conflict of Interest, pursuant to which several persons have resigned from positions on account of conflict of interest. Any person can make a complaint to the Ombudsman regarding conflict of interest. The Rules on Conflict of Interest provide that every complaint shall be decided within a period of 30 (Thirty) days from the receipt of the complaint and the decision of the Ombudsman shall be final and binding. A copy of the Rules on Conflict of Interest is annexed hereto and marked as ANNEXURE-A (pg.61 to 63) (c) Availability of Rules and Regulations on BCCI Website: All Rules and Regulations of the BCCI, Annual Reports along with the finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been the absence powers to gather intelligence on the subject and/ or policing powers with the BCCI s Anti Corruption Unit. For this reason, the BCCI has requested the Government of Maharashtra to establish a sports integrity intelligence gathering unit under the joint aegis of the BCCI and Maharashtra Police whilst offering to fund the costs of doing so, if required. A copy of the letter dated 18th November 2015 addressed by the BCCI to the Hon ble Chief Minister of Maharashtra is annexed hereto and marked as ANNEXURE B (pg.64 to 65) (g) Decentralisation of powers with the President: By virtue of being the Chairman of the Annual General Meetings and Special General Meetings of the BCCI, the President earlier had an independent vote (in addition to a casting vote) at General Meetings. Further, any dispute as to admission or rejection of a vote at General Meetings was earlier decided by the President. BCCI Rules and Regulations have been amended to do away with the independent vote of the President at General Meetings. Similarly, any dispute as to admission or rejection of a vote at General Meetings will now be decided by a simple majority. 37. Having said that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that provide for promotion of an Affiliate Member to an Associate Member as well as for promotion of an Associate Member to a Full Member to take care of the interests of all concerned. This method is in tune with the method followed by International Cricket Council (for short, the ICC ) where a member has to reach a certain level in performance and infrastructure before it may be promoted to the next level. 41. BCCI has also faulted the proposed reduction in advertisement as the same will according to it have a crippling effect on the financial health of the Board and adversely impact its ability to carry out its various programmes. Restricting advertisements only to drinks, lunch and tea breaks will substantially de-value the broadcast rights and reduce the income of the BCCI as broadcasters will in that case pay a only fraction of the amount that they are now paying for the broadcast rights. The affidavit traces the history of the growth of the activities of the BCCI and corresponding growth in its finances. Induction of a nominee of the Comptroller and Auditor General of India (for short, the CAG ) on the Management Committee/Apex Council has also been stoutly opposed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a society formed by private individuals who enjoy constitutional protection under Article 19 of the Constitution of India. It has also raised an issue that the Committee did not give a hearing to BCCI regarding the proposed recommendations. Although a questionnaire was sent to the office bearers of the BCCI including the honorary President, honorary Secretary and the honorary Treasurer and even when the office bearers of the BCCI had appeared before the Committee to explain their view points, the failure of the Committee to put the proposed recommendations to the BCCI has, according to the BCCI, denied to them an opportunity to represent against the same. The affidavit finally acknowledges that BCCI has benefitted greatly from the report of the Lodha Committee and that it is committed to implementing the same to ensure greater professionalism, transparency and accountability keeping in mind the underlying objective of betterment of cricket in India. 43. Appearing for BCCI Mr. K.K. Venugopal, learned senior counsel, argued that although BCCI had received a questionnaire and although the office bearers of the BCCI also had extensive interaction with the Committee on several aspect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny right of the applicant finally. It has simply enquired into the working of the BCCI, identified its fault, its weaknesses, failures and shortcomings and suggested ways and means by which the same can be rectified. The report submitted by the Committee is recommendatory in nature and does not ipso facto oblige BCCI to accept the changes suggested therein unless so directed by the Court. That being so, any grievance based on the alleged violation of the principles of natural justice and failure of the Committee to put the recommendations proposed to be made before the BCCI for its response did not, in our opinion, constitute any substantive or procedural infirmity that could vitiate the report or the recommendations or call for a remand to the Committee. Principles of natural justice, it is well settled, are not codified rules of procedure. Courts have repeatedly declined to lay down in a strait jacket, their scope and extent. The extent, the manner and the application of these principles depends so much on the nature of jurisdiction exercised by the Court or the Tribunal, the nature of the inquiry undertaken and the effect of any such inquiry on the rights and obligations of thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed the recommendations made by the Committee that each State in the country must be represented in the BCCI by an association as a full member. It was urged that while the BCCI was not averse to conceding full membership to an association duly recognized from each State in the country to give to the BCCI a truly national character, the Committee s recommendations that multiple full members from the States of Gujarat and Maharashtra should be discontinued and two members each from both the States reduced to associate membership of BCCI was neither just nor legally permissible. It was submitted that both Maharashtra and Gujarat have three full members in the BCCI, not only because the said members were founding members of the BCCI but also because they had, since their inception promoted cricketing activity in their respective regions and fielded teams to compete in tournaments. Denying to any one of the said six members the privilege of full membership of the BCCI would, according to Mr. Venugopal, violate Article 19(1)(c) of the Constitution. So also, the termination of the membership of other full members namely Association of Indian Universities, Railways Sports Promotion Boar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rected to be implemented. 49. We have given our anxious consideration to the submissions made at the Bar. We may, before adverting to the rival submissions urged before us, point out two distinct aspects that need to be kept in mind while addressing the issues raised before us. The first is that the proceedings that led to the setting-up of the Committee arose out of a public interest petition. The directions issued by this Court proceeded on a clear finding recorded by this Court that even when BCCI is not a state within the meaning of Article 12 of the Constitution of India, it is amenable to the jurisdiction of the High Court since it discharges public functions. That part of the controversy stands concluded by judgment of this Court in the earlier round and cannot be reopened no matter Mr. Venugopal made a feeble attempt to do so by making a reference to the Constitution Bench judgment of this Court in Zee Telefilms Ltd. v. Union of India (2005) 4 SCC 649 . All that we need mention is that while holding BCCI to be amenable to the writ jurisdiction of the Courts, we have taken note of the pronouncement of this Court in Zee Telefilms case (supra). This is evident from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yers and others involved in the game of cricket. These activities can be said to be akin to public duties or State functions and if there is any violation of any constitutional or statutory obligation or rights of other citizens, the aggrieved party may not have a relief by way of a petition under Article 32. But that does not mean that the violator of such right would go scot-free merely because it or he is not a State. Under the Indian jurisprudence there is always a just remedy for violation of a right of a citizen. Though the remedy under Article 32 is not available, an aggrieved party can always seek a remedy under the ordinary course of law or by way of a writ petition under Article 226 of the Constitution which is much wider than Article 32. 50. The second aspect that needs to be borne in mind is that neither BCCI nor anyone else has assailed the findings recorded by the Committee insofar as the deep rooted malaise that pervades in the working of the BCCI is concerned. We have referred at great length to the findings of the Committee in this regard which findings have not been assailed before us either in the affidavits filed or in the course of arguments at the bar. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 19(1)(c) of the Constitution. Secondly and more importantly because the recommendations do not, in our opinion, affect the composition of the State Cricket Associations in any manner. Citizens who have come together to form the State Associations continue to associate as before with no change in their internal composition. If that be so as it indeed is the right guaranteed under Article 19(1)(c) stands exercised, which exercise would continue to enjoy the protection of the constitutional guarantee till the Association/Union or co-operative Society, as the case may be, continues to exist. What is, however, important is that the right under Article 19(1)(c) does not extend to guaranting to the citizens the concomitant right to pursue their goals and objects uninhibited by any regulatory or other control. The legal position in this regard is settled by several decisions of this Court to which we may gainfully refer at this stage. 55. In All India Bank Employees Association v. The National Industrial Tribunal (Bank Disputes), Bombay and Ors., AIR 1962 SC 171 a Constitution Bench of this Court while explaining the scope of Article 19(1)(c) drew a distinction between the right t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n cannot be coupled with the fundamental right to carry on any trade or business. As soon as citizens formed a company, the right guaranteed to them by Article 19(1)(c) stood exercised. After the incorporation of the company the business carried on by it is the business of the corporation and not the business of the citizen. The Court held: 28. That being the position with regard to the doctrine of the veil of a corporation and the principle that the said veil can be lifted in some cases, the question which arises for our decision is; can we lift the veil of the petitioner and say that it is the shareholders who are really moving the Court under Article 32, and so, the existence of the legal and juristic separate entity of the petitioners as a corporation or as a company should not make the petitions filed by them under Article 32 incompetent. We do not think we can answer this question in the affirmative. No doubt, the complaint made by the petitioners is that their fundamental rights are infringed and it is a truism to say that this Court as the guardian of the fundamental rights of the citizens will always attempt to safeguard the said fundamental rights; but having re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle l9(1)(c). He argued that Article 19(1)(c) enables the citizens to choose their instruments or agents for carrying on the business which it is their fundamental right to carry on. If citizens decide to set up a corporation or a company as their agent for the purpose of carrying on trade or business, that is a right which is guaranteed to them under Article 19(1)(c). Basing himself on this distinction between the two rights guaranteed by Article l9(1)(g) and (c) respectively, Mr Palkhivala somewhat ingeniously contended that we should not hesitate to lift the veil, because by looking at the substance of the matter, we would really be giving effect to the two fundamental rights guaranteed by Article l9(l). We are not impressed by this argument either. The fundamental right to form an association cannot in this manner be coupled with the fundamental right to carry on any trade or business. As has been held by this Court in all-India Bank Employees Association v. National Industrial Tribunal, the argument which is thus attractively presented before us overlooks the fact that Article 19, as contrasted with certain other articles like Articles 26, 29 and 30 guarantees rights to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form an association under Article 19(1)(c). This Court said : 29. It is contended that the compulsory affiliation of the petitioners to the University affects their fundamental right of freedom of association as guaranteed under Article 19(1)(c), therefore the notification under Section 5(3) affiliating them to the University is bad. It is also urged that since the words associated with and admitted to any privileges are used in Section 5 of the Act, it would mean that petitioners are compulsorily formed into an Association with the University. This contention however is countered by the respondents who point out that the freedom of association under Article 19(1)(c) implies association between citizens while in the case of the petitioners what is sought to be affected is an affiliation with the University which is a corporate body. 30. The right to form an association implies that several individuals get together and form voluntarily an association with a common aim, legitimate purpose and having a community of interests. It was sought to be suggested that the compulsory affiliation with the University affects the aims and objects of the association, as such its freed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... administration of the affairs of the Society; what it does is to alter the composition of the Society itself as we have indicated above. The result of this change in composition is that the members, who voluntarily formed the Association, are now compelled to act in that Association with other members who have been imposed as members by the Act and in whose admission to membership they had no say. Such alteration in the composition of the Association itself clearly interferes with the right to continue to function as members of the Association which was voluntarily formed by the original founders. The right to form an association, in our opinion, necessarily implies that the persons forming the Association have also the right to continue to be associated with only those whom they voluntarily admit in the Association. Any law, by which members are introduced in the voluntary Association without any option being given to the members to keep them out, or any law which takes away the membership of those who have voluntarily joined it, will be a law violating the right to form an association. If we were to accept the submission that the right guaranteed by Article 19(1)(c) is confined t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest of public order or morality; (ii) A right to form associations guaranteed under Article 19 (1) (c) does not imply the fulfillment of every object of an association as it would be contradictory to the scheme underlying the text and the frame of the several fundamental rights guaranteed by Part III and particularly by the scheme of the guarantees conferred by sub-clauses (a) to (g) of clause (1) of Article 19; (iii) While right to form an association is to be tested by reference to Article 19(1)(c) and the validity of restriction thereon by reference to Article 19(4), once the individual citizens have formed an association and carry on some activity, the validity of legislation restricting the activities of the association shall have to be judged by reference to Article 19(1)(g) read with 19(6). A restriction on the activities of the association is not a restriction on the activities of the individual citizens forming membership of the association; and (iv) A perusal of Article 19 with certain other Articles like 26, 29 and 30 shows that while Article 19 grants rights to the citizens as such, the associations can lay claim to the fundamental rights guaranteed by Article 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such Associations under Article 19(1)(c). That being so, the grievance sought to be made on behalf of citizens who have formed the State Associations does not stand scrutiny no matter none of those on whose behalf the argument is advanced is before this Court to make any such grievance. We have, in the light of the above, no difficulty in rejecting the first limb of the submissions made by learned counsel opposing the recommendation of the committee that BCCI shall have the Cricket Association from each State as a full member. 62. That brings us to the question whether One State One vote recommended by the Committee suffers from any legal or other infirmity sufficient for this Court to reject the same. The recommendation made by the Committee has a two-fold impact on the current state of affairs in BCCI. The first is the reduction of some of the Associations and Clubs from the full membership of BCCI to the status of Associate Members. The other aspect of the recommendation is the reduction of the full membership of at least four existing full members to the status of associate members from the states of Maharashtra and Gujarat. 63. In the first category, fall five full mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recommendation made by the committee regarding the conversion of the status of the above mentioned clubs and associations are, therefore, sound and are hereby accepted. 64. Coming to the second aspect of One State One Vote , it was argued by learned counsel appearing for the intervening clubs from the States of Maharashtra and Gujarat that the six clubs/associations three each from the two States viz. Mumbai Cricket Association, Maharashtra Cricket Association, Vidarbha Cricket Association, Gujarat Cricket Association, Baroda cricket Association and Saurashtra Cricket Association not only represent a definite territory and participate in competitive cricket by fielding teams but have contributed to the development of the game in their regions. It was submitted that the recommendations made by the committee that BCCI should choose one of the clubs to represent the entire state was fraught with difficulty and ignored the historical perspective and the fact that the these clubs had made substantial contribution to the development and promotion of cricket in this country. It was, therefore, urged that reducing the role of four out of the six clubs from full membership to associate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns would act as associate members of BCCI. This rotational arrangement would give each member a right to vote at its turn without violating the broader principle of one State one vote recommended by the Committee. This would also respect the historical aspect in which these associations grew to promote the game and form BCCI as a national body. Needless to say that the right of the association to field teams as before will remain unaffected subject to any changes that BCCI may make in its wisdom over a period of time. BCCI shall, however, decide the order in which the membership will rotate among the three associations in these two states. We make it clear that this arrangement of rotational membership shall continue till such time the clubs/Associations come together to form a single entity, if such a unification was to ever become a reality. 66. It was next argued by Mr. Venugopal and counsel appearing for some of the interveners including Mr. Sampath, counsel for the Karnataka State Cricket Association that the recommendation made by the Lodha Committee as to the upper age limit of any office bearer is neither reasonable nor conducive to the development and promotion of the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (IOA) shall cease to hold that post on attaining the age of 70 years. The upper age limit of 70 years is not, therefore, an unusual or unacceptable norm so as to warrant our interference with the same. The recommendation made by the Lodha Committee regarding upper age limit for office bearers is accordingly accepted. 69. Mr.Venugopal, learned counsel appearing for BCCI and counsel for some of the interveners opposing the recommendations of the Committee also assailed the Committee s recommendation that Ministers and Government Officials should be ineligible for any post in State Associations or in the BCCI. It was contended that the restrictions sought to be placed on the Ministers and Government Servants are unreasonable. It was contended that past experience of the BCCI has shown that Government Servants and Ministers are able Administrators whose association with BCCI and the Associations has resulted in substantial benefit to BCCI in the management of its affairs. It was contended that office bearers in BCCI serve in an honorary capacity and without any remuneration for their services, except that travel, lodging and boarding arrangements are taken care of by the BCCI. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment at different levels by proposing modification of the relevant rules and regulations. The Committee has in its wisdom found that the holding of office by the Ministers and Civil Servants in the State Associations or in the BCCI is not conducive to the health and promotion of the game. The Committee has taken the view that the game would be better managed, promoted and developed if politicians and civil servants who otherwise occupy positions of responsibility in the Government that call for their complete and unstinted attention and commitment are made ineligible from holding any post in the State associations or the BCCI. The Committee has while making that recommendation observed: Any elected Councillor shall stand automatically disqualified after nine years as an office bearer, and shall also be disqualified from contesting or holding the post if he has completed the age of 70 years, is charged under the penal law, is declared to be of unsound mind, is a Minister or government servant or holds any post of another sports body in the country. xxx xxx xxx xxx xxx xxx xxx xxx b. Posts Tenures The lack of any qualifications or disqualifications a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. Presidents and Secretaries of State Associations are to discharge functions with the primary interest of the State in mind, but as BCCI office bearers, these interests would have to be subordinated to that of national interest. Often, with powers centred on an office bearer, that individual has been found to appoint his State associates to critical posts in the BCCI, thereby creating an imbalance. 73. There is nothing irrational about the view taken by the Committee. The argument that individuals should be eligible to hold two posts one each in the State Association and the BCCI does not stand scrutiny in the light of the reasons given by the Committee which do not, in our opinion, suffer from any perversity to call for our interference. 74. It was next contended on behalf of the BCCI that the recommendations made by the Committee for inclusion of a nominee of the Accountant General of the State in the Governing Body of the State Associations and a nominee of the Comptroller Auditor General of India (C AG) as Member of the Apex Council in BCCI were both unacceptable to BCCI being unnecessary inflictions that were likely to result in the derecognition of the BCCI by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue they deserve the following year. This oversight also needs to consider the high and unreasonable expenditures by the Board on various heads, which would have to be limited and streamlined. 76. While dealing with the question of governance in Chapter Two of the Report the Committee has recommended a Nine-Member Body as the Apex Council out of whom five shall be elected office bearers of the BCCI while four shall be Councillors one of them to be nominated by the C AG. The nominee of C AG, shall, in the opinion of the Committee bring transparency and oversight in monitoring the finances of the BCCI. It is in that background that the Committee has recommended in the draft Rules and Regulations/Memorandum of Association the composition of the State Associations and the BCCI to include a nominee of the Accountant General of the State in the case of State Associations and nominee of C AG as Member of the Apex Council in the case of the BCCI. It is evident from a careful reading of the Report that the object underlying the induction of the nominees of the Accountant General of the State and the C AG is to bring transparency and financial oversight into the affairs of the State Asso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the formation of a Players Association. To the extent the recommendation provides for establishment of a Players Association neither the BCCI nor any other association who has intervened has found fault with the view taken by the Committee. What has come under criticism by the BCCI and its supporting associations is the financial assistance which the BCCI is required to give to such an association. On behalf of the BCCI it was contended that cricket players can indeed form an association which they are in any case entitled to form, but that exercise need not be at the expense of the BCCI. The recommendation for financial support to the association is thus all that has been faulted by the BCCI. It was also contended that there was no need for providing any representation for the Association in the Apex Council of the BCCI having regard to the fact that some of the cricketers had in the past held offices in the State Associations and in the BCCI by recourse to the democratic process, without any such reservation. 79. There are three distinct aspects of the recommendation in question. One relates to formation of the Association itself; the second touches the financial suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neous element into the management of the BCCI. We have, therefore, no hesitation in rejecting the argument against the recommendation. 81. That leaves us with three other recommendations of the Committee to which we may advert at this stage. Of these, two recommendations are in the nature of an appeal to the Parliament to enact suitable statutory provisions which the Committee considers essential in public interest. The first of these recommendations relates to the BCCI being under the purview of Right to Information Act and to carry out a suitable amendment to this effect. While the second recommendation is to the effect that the Parliament ought to legalize betting in cricket. Dealing with the first recommendation the Committee has observed: The Right to Information Act, 2005 ( RTI Act ) enacts that public authorities shall make known the particulars of the facilities available to citizens. While the issue of the BCCI being amenable to the RTI Act is sub judice before the High Court of Madras in W.P.No.20229/2013, many respondents who appeared and interacted with the Committee were of the view that BCCI s activities must come under the RTI Act. Having regard to the emphas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted to maximize the broadcaster s income by cutting away to a commercial, thereby robbing sport of its most attractive attribute emotion. It is recommended that all existing contracts for international Test One-Day matches be revised and new ones ensure that only breaks taken by both teams for drinks, lunch and tea will permit the broadcast to be interrupted with advertisements, as is the practice internationally. Also, the entire space of the screen during the broadcast will be dedicated to the display of the game, same for a small sponsor logo or sign. 85. BCCI has filed objections in so far as the above recommendations are concerned. Firstly, it is stated that the telecast/broadcast of the game covers the entire over, namely, from the first ball to the last ball of the over and no part of the game s telecast is hampered by commercial exploitation of the event. The second contention urged is that the revision of contracts already fixed is likely to result in serious financial difficulties and other implication which will not be in the interest of the game. It is also contended that any modification of the contractual terms and conditions at this stage is likely to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... io members of the BCCI namely; the Secretary, the Treasurer and the CEO. Two representatives of the Members of BCCI to be elected by the General Body, two nominees of the IPL franchisees and one nominee each to be nominated by the C AG and from the Players Association. The BCCI has objected to the recommendation in so far as same pertains to induction of two nominees of the franchisees. The BCCI contends that the induction of the nominees from the franchisees is impermissible because important matters like players retention policy, posting of umpires for IPL matches, etc. are deliberated upon and decided by the Governing Council itself. There is therefore an evident conflict of interest between the nominees of the IPL franchisees on the one hand and their role as members of the Governing Council on the other. The BCCI contends that this Court has set aside an amendment by which the BCCI had permitted persons affiliated with the franchisees to take part in the management of the IPL on the ground that the same violates the principle of institutional integrity. The induction of the representatives of the franchisee would however, bring about a conflict of interest which is neither pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individuals holding office for any number of consecutive terms, the Committee was, in our opinion, justified in recommending the length of a term in office. A three year term recommended by the Committee is, in our opinion, reasonable. So also, the prescription of cooling off period between two terms cannot be faulted. Similarly, an optimum period of 9 years as a member of the apex council cannot also be termed as unreasonable. Grounds for disqualification like unsoundness of mind, the member becoming a minister or holding a membership in any sporting body also meet the requirement of reasonableness and do not call for interference from the court. The contention that the recommendations have no rationale or that the same are contrary to the provisions of the Tamil Nadu Societies Registration Act deserve notice only to be rejected. 90. The other recommendation which we may deal with is the overhaul of the existing Committees of the BCCI on the ground that they do not have clearly defined terms of reference. The Committee has on the basis of a thorough consideration and deliberation with all concerned recommended that the BCCI ought to adopt an approach that would institutionalize ..... X X X X Extracts X X X X X X X X Extracts X X X X
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