TMI Blog2015 (1) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Committee or its deliberations shall not affect the ensuing elections which the BCCI shall hold within six weeks from the date of this order in accordance with the prevalent rules and regulations subject to the condition that no one who has any commercial interest in the BCCI events (including Mr. N. Srinivasan) shall be eligible for contesting the elections for any post whatsoever - The Committee shall be free to fix their fees which shall be paid by the BCCI who shall, in addition, bear all incidental expenses such as travel, hotel, transport and secretarial services, necessary for the Committee to conclude its proceedings. The fees will be paid by the BCCI to the members at such intervals and in such manner as the Committee may decide. The venue of the proceedings shall be at the discretion of the Committee. These appeals shall stand disposed of in the above terms with the direction that the relevant record received from Justice Mudgal Committee shall be forwarded to the Chairman of the newly appointed Committee without any delay. - CIVIL APPEAL NO. 4235 OF 2014, CIVIL APPEAL NO.4236 OF 2014 WITH CIVIL APPEAL NO. 1155 OF 2015 (Arising out of SLP (C) No.34228 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... positions of influence in the BCCI but also own franchises and teams competing in the IPL format have left many a cricketing enthusiasts and followers of the game worried and deeply suspicious about what goes on in the name of the game. There is no denying the fact that lower the threshold of tolerance for any wrong doing higher is the expectation of the people, from the system. And cricket being not only a passion but a great unifying force in this country, a zero tolerance approach towards any wrong doing alone can satisfy the cry for cleansing. 3. These appeals arise out of two successive writ petitions filed in public interest by the Appellant-Cricket Association of Bihar before the High Court of Bombay for several reliefs including a writ in the nature of mandamus directing BCCI to recall its order constituting a probe panel comprising two retired Judges of Madras High Court to enquire into the allegations of betting and spot fixing in the Indian Premier League (IPL) made among others against one Gurunath Meiyappan. The High Court has by its order dated 30th July, 2013 passed in PIL No. 55 of 2013 granted that relief but declined a possible reconstitution of the panel. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions was amended to exclude from its operation events like IPL and Champions' League twenty-20. We shall presently turn to Regulation 6.2.4 but before we do that we need to complete the factual narrative. 7. In April 2013, Special Cell, Delhi Police, Lodhi Colony, New Delhi, is said to have received secret information that certain members of the underworld were involved in fixing of matches in the recently concluded edition of the IPL. FIR No. 20 of 2013 was, on that information, registered by the Special Cell, Delhi Police, Under Sections 420 and 120B of the Indian Penal Code and Mr. S. Sreesanth, Mr. Ajit Chandila and Mr. Ankit Chavan of the Rajasthan Royals alongwith 7 bookies detained for allegations of spot-fixing. Shortly thereafter Mr. Gurunathan Meiyappan, son-in-law of Mr. N. Srinivasan was also arrested by the Mumbai Police on 25th May, 2013 in a spot fixing/betting case. Soon after the arrest on 26th May, 2013 came an announcement that a Commission comprising two members of the BCCI and one independent member would be constituted to enquire into allegations of betting and spot fixing. This was followed by nomination of two former Judges of the High Court of Madras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oticed earlier, assailed the very same order in Civil Appeal No. 4236 of 2014 to the extent it has declined to grant further and consequential relief to the Appellant. 10. When this matter came up for hearing on 27th September, 2013 before a Bench comprising A.K. Patnaik and J.S. Khehar JJ., this Court permitted the Annual General Meeting of the Respondent-BCCI to be held on 29th September, 2013 as scheduled and so also election to the post of President, subject to the condition that in case Respondent No. 2-Mr. N. Srinivasan got elected, he will not take charge until further orders. When the matter came up again on 8th October, 2013, this Court noted that although Mr. N. Srinivasan had been elected as the President of the Board yet a probe into the allegations of betting and spot fixing was necessary. A reading of order dated 8th October, 2013 passed by this Court would show that the constitution of the Probe Committee comprising Mr. Justice Mukul Mudgal, retired Chief Justice of Punjab and Haryana High Court, Mr. L. Nageshwar Rao, Additional Solicitor General and Mr. Nilay Dutt, Senior Advocate, Gauhati High Court was passed with the consent of the parties. Justice Mukul Mudga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the CBCID Branch. (viii) That Mr. Gurunath Meiyappan would regularly place bets in IPL matches both in favour of his team (i.e. CSK) and against his team - a fact established from call records produced by the Mumbai Police. (ix) That Mr. Gurunath Meiyappan would place bets through Vindoo Dara Singh and such bets were even placed during the course of IPL match as revealed by transcripts produced by Mumbai Police. (x) That in one instance Mr. Gurunath Meiyappan made certain predictions to Mr. Vindoo Dara Singh regarding the runs that would be scored in a match between CSK and Rajasthan Royals held on 12th May, 2013 at Jaipur. According to Mr. Meiyappan's prediction that CSK would score 130-140 runs came true as CSK actually scored 141 runs only. 12. The Probe Committee on the above findings held Mr. Gurunath Meiyappan guilty of betting which in its opinion was accentuated by his position in the CSK. What is important is that the Probe Committee held that Mr. Gurunath Meiyappan had in his acts of betting the implicit approval of the franchisee owner India Cements thereby bringing the team to disrepute and violating Sections 2.2.1 and 2.14 of the IPL Operational ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same to be proved. The Committee was, however, of the view that the disciplinary action taken by BCCI against the delinquent players was adequate and satisfactory. 15. Having said that the Committee referred to allegations of sporting frauds made before it during its interaction with several persons connected with the game. The Committee placed before this Court the names of persons against whom such allegations were made in a sealed envelope. The Committee also mentioned other issues including the issue of conflict of interest between Mr. N. Srinivasan as the BCCI President on the one hand and CEO of India Cements Ltd. on the other. The Committee concluded its report by making certain recommendations that would, in its opinion, help remove the malaise of spot/match fixing and detect sporting frauds by BCCI's Investigation Wing. 16. The report submitted by the Probe Committee was then considered by this Court in its order dated 16th May, 2014 by which this Court permitted the Probe Committee to enquire into the allegations made against those named in the sealed cover filed before the Court by the Committee including Mr. N. Srinivasan. This Court also provided the necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties at considerable length. The following questions fall for our determination: (1) Whether the Respondent-Board of Cricket Control of India is 'State' within the meaning of Article 12 and if it is not, whether it is amenable to the writ jurisdiction of the High Court Under Article 226 of the Constitution of India? (See Paras 20 to 30) (2) Whether Gurunath Meiyappan and Raj Kundra were 'team officials' of their respective IPL teams-Chennai Super Kings and Rajasthan Royals? If so, whether allegations of betting levelled against them stand proved? (See Paras 31 to 46) (3) If question No. 2 is answered in the affirmative, what consequential action in the nature of punishment is permissible under the relevant Rules and Regulations, and against whom? (See Paras 47 to 62) (4) Whether allegations of cover up, levelled against Mr. N. Srinivasan stand proved. If so, to what effect? (See Paras 63 to 65) (5) Whether Regulation 6.2.4 to the extent it permits administrators to have commercial interest in the IPL, Champions League and Twenty-20 events is legally bad? (See Paras 66 to 98) (6) Whether allegations levelled against Mr. Sundar Raman, Chief Operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rivately performing a public function it is bound by the constitutional standard applicable to all State actions. Marsh v. Alabama (supra), it is noteworthy, arose out of a prosecution launched against a Jehovah's witness for her refusal to leave the side walk where she was distributing religious pamphlets. She was fined five dollars but aggrieved by her prosecution she approached the Supreme Court to argue that the corporation that owned the town had denied the right of religious liberty available to Marsh. The U.S. Supreme Court upheld the contention and declared that administration of public bodies like a town through private entities were tantamount to carrying out functions of a public body. Private right of the corporation could, therefore, be exercised only within constitutional limitations. Black J. speaking for the Court observed: The more an owner, for his advantage, opens up his property for use by the public in general, the more do his rights become circumscribed by the statutory and constitutional rights of those who use it. Thus, the owners of privately held bridges, ferries, turnpikes and railroads may not operate them as freely as a farmer does his farm. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India and Ors. (1979) 3 SCC 489 this Court held that while a corporation may be created by a statute or incorporated under a law such as the Companies Act, 1956, or the Societies Registration Act, 1860, the question that often arises is as to when does the corporation become an instrumentality or agency of the Government and what are the tests to determine whether a corporation is or is not such an instrumentality or agency. While holding that there is no cut and dried formula that can provide an answer, this Court referred to American decisions in Evans v. Newton 382 US 296 15 L. Ed.-2nd 373, Ch 614 : 1963 1 All. E.R. 590 and New York v. United States 326 US 572 to declare that if the functions of the corporation are of public importance and closely related to governmental functions, it would be a relevant factor in classifying the corporation as an instrumentality or agency of the State. This Court said: 16. There is also another factor which may be regarded as having a bearing on this issue and it is whether the operation of the corporation is an important public function. It has been held in the United States in a number of cases that the concept of private action must yiel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake a multitude of socioeconomic operations, and the practical advantages of functioning through the legal device of a corporation for a myriad of commercial and economic activities. But any such contrivance of carrying on such activities cannot, declared this Court, exonerate the government of its basic obligation to respect the fundamental rights of the citizens for otherwise it would be the easiest thing for any government to assign to a plurality of corporations almost every State business and thereby cheat the people of this country of the fundamental rights guaranteed to them under the Constitution. The Court went on to enunciate certain tests applicable for determining whether an entity is an instrumentality or the agency of the State , an expression that does not figure in Article 12 of the Constitution but which would constitute an authority Under Article 12 of the Constitution. 26. In Pradeep Kumar Biswas v. Indian Institute of Chemical Biology and Ors. (2002) 5 SCC 111 a seven-Judge Bench of this Court was examining whether Council of Scientific and Industrial Research was a State within the meaning of Articles 12 and 13(2) of the Constitution. The Court decided by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that without its recognition no competitive cricket can be hosted either within or outside the country. Its control over the sport of competitive cricket is deeply pervasive and complete. 81. In law, there cannot be any dispute that having regard to the enormity of power exercised by it, the Board is bound to follow the doctrine of fairness and good faith in all its activities. Having regard to the fact that it has to fulfil the hopes and aspirations of millions, it has a duty to act reasonably. It cannot act arbitrarily, whimsically or capriciously. As the Board controls the profession of cricketers, its actions are required to be judged and viewed by higher standards. (Emphasis is ours) 28. The question whether the Respondent-BCCI is 'State' within the meaning of Article 12 fell directly for consideration of this Court in Zee Telefilms Ltd. and Anr. v. Union of India and Ors. (2005) 4 SCC 649. By a majority of 3:2 this Court ruled that Respondent-BCCI was not 'State' within the meaning of Article 12. This Court held that the Board was not created by any statute, nor was a part of the share capital held by the Government. There was practically no fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hosen to leave the activities of cricket to be controlled by private bodies out of such bodies' own volition (self-arrogated). In such circumstances when the actions of the Board are not actions as an authorised representative of the State, can it be said that the Board is discharging State functions? The answer should be No. In the absence of any authorisation, if a private body chooses to discharge any such function which is not prohibited by law then it would be incorrect to hold that such action of the body would make it an instrumentality of the State. The Union of India has tried to make out a case that the Board discharges these functions because of the de facto recognition granted by it to the Board under the guidelines framed by it, but the Board has denied the same. In this regard we must hold that the Union of India has failed to prove that there is any recognition by the Union of India under the guidelines framed by it, and that the Board is discharging these functions on its own as an autonomous body. 29. Having said that this Court recognized the fact that the Board was discharging some duties like the Selection of Indian Cricket Team, controlling the activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and collects admission fee to venues where the matches are played. All these activities are undertaken with the tacit concurrence of the State Government and the Government of India who are not only fully aware but supportive of the activities of the Board. The State has not chosen to bring any law or taken any other step that would either deprive or dilute the Board's monopoly in the field of cricket. On the contrary, the Government of India have allowed the Board to select the national team which is then recognized by all concerned and applauded by the entire nation including at times by the highest of the dignitaries when they win tournaments and bring laurels home. Those distinguishing themselves in the international arena are conferred highest civilian awards like the Bharat Ratna, Padma Vibhushan, Padma Bhushan and Padma Shri apart from sporting awards instituted by the Government. Such is the passion for this game in this country that cricketers are seen as icons by youngsters, middle aged and the old alike. Any organization or entity that has such pervasive control over the game and its affairs and such powers as can make dreams end up in smoke or come true cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Gurunath Meiyappan was a team official for purposes of disciplinary action permissible under the relevant rules and Regulations. We may hasten to add that our examination of that issue will be without prejudice to Mr. Gurunath Meiyappan's right to claim that he was not a team official if at all the said question arises for consideration in the criminal trial pending against him, nor shall our opinion on the subject be taken as binding upon the criminal court where the question can be examined independently. 32. Having said that we find that the Probe Committee has correctly appreciated the facts as emerging from the documents and the depositions of witnesses recorded by it and rightly come to the conclusion that Gurunath Meiyappan was a team official of CSK. That is so especially when India Cements Ltd. who owns the team made a candid admission before us that Gurunath Meiyappan was indeed a team official within the meaning of that expression under the rules. We, therefore, see no real, much less compelling reason, for us to disagree or reverse the finding recorded by the Probe Committee on that aspect. 33. The Probe Committee has on the basis of the material available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved against Mr. Raj Kundra and his wife Shilpa Shetty the same would constitute serious infraction of the IPL Operational Rules, the IPL Anti-Corruption Code and the IPL Code of Conduct for Players and Team Official. The Committee observed: The Committee is thus of the view that if the allegations of betting against Mr. Raj Kundra and Ms. Shetty who are part of Rajasthan Royals, stand proved the same would constitute a serious infraction of Sections 2.2.1 and 2.14 of the IPL Operational Rules for bringing the game in disrepute, Articles 2.2.1, 2.2.2 and 2.2.3 of the IPL Anti Corruption Code for acts of betting and Articles 2.4.4 of the IPL Code of Conduct for Players and Team Officials, for bring disrepute to the game of cricket. 35. A concurring report submitted by Mr. Nilay Dutta the third member of the Probe Committee also expressed a similar view when it said: There seems to have been an effort to cover up the involvement of Mr. Raj Kundra in betting. In terms of the Regulations in force of the BCCI, even legal betting is not permitted on the part of an owner of a franchisee. No benefit would accrue to Mr. Raj Kundra by an attempt to show that bets were placed through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual was abruptly and without reason stopped by the Rajasthan Police upon receiving the case papers from Delhi Police. The Committee found that a friend of individual 11 was a known punter. The said punter has given a Section 164 statement to the effect that he was placing bets on behalf of individual 11. Individual 11 had introduced him (punter) to another bookie who dealt with larger stakes. Section 161 statement made by another player confirmed that individual 11 introduced him to a bookie. Materials on record indicate that individual 11 was placing bets or was at the minimum standing guarantee for his punter friend. These infractions also violate BCCI/IPL Anti-Corruption Code. 38. Appearing for Mr. Raj Kundra, Mr. Shekhar Naphade, learned senior Counsel, argued that the report submitted by the Probe Committee could at best be taken as a preliminary report. A proper enquiry into the allegations made against Mr. Raj Kundra shall have to be separately conducted in terms of the relevant rules and Regulations. In support of that contention he placed reliance upon the disciplinary procedure prescribed Under Rule 6.2.2 of the IPL Operational Rules which postulates establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Raj Kundra was duly accredited and doubtless a 'team official' in terms of IPL Operational Rules and also 'Player Support Personnel' and Participant in terms of the IPL Anti-Corruption Code. Mr. Desai, however, assailed the findings recorded by Justice Mudgal Committee that Mr. Raj Kundra had indulged in betting in IPL matches and argued that the report was vague and unsustainable against Mr. Raj Kundra more so against Rajasthan Royals. It was argued by him that Mr. Raj Kundra was never a part of the management directly or indirectly and had never participated in the management decisions including decisions regarding the purchase of players or the strategy adopted by the franchisee or its team. No notice was, according to Mr. Desai, served upon Respondent No. 4-company although Mr. Raj Kundra was summoned and examined by the Probe Committee. According to the learned Counsel, Justice Mudgal Committee had only completed the first stage process of investigation leaving the second stage 'fact finding' and the third stage 'adjudication' issues open. It was contended that even if Mr. Raj Kundra was held to be guilty of betting, the question whether any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCI's response to the extraordinary situation with Mr. Jagdale as the third member. The Probe Committee was reduced to two members after Mr. Jagdale decided to resign, but the Committee was asked by the Board to continue and complete the probe even with its reduced strength. This was a conscious departure by the BCCI from the procedure laid down by the IPL Operational Rules which was faulted by the High Court of Bombay in the writ petition filed by the Appellant-association. When the matter travelled to this Court the seriousness of the allegations and the ramifications involved led to the setting up of a High Powered Probe Committee in place of the Disciplinary Procedure Commission contemplated by the IPL Operational Rules and Regulations. The whole purpose behind setting up of the Probe Committee was to make the entire process of investigation and enquiry into the allegations credible. The Probe Committee headed by a former Chief Justice of the High Court of Punjab and Haryana was never intended to conduct a preliminary investigation as was suggested by M/s. Naphade and Desai. It was on the contrary understood by all concerned to be a substitute for the Disciplinary Procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the game and cheating the public of their confidence in its purity. That being the object, it is futile to set up the disciplinary procedure under the Rules against the exercise of such plenary powers as are vested in this Court under the constitutional provisions mentioned above. 42. Having said that we must say and say it without any hesitation that like the Disciplinary Procedure Commission even the Probe Committee set up by this Court was bound to observe the principles of natural justice in the matter of conducting the probe entrusted to it. That is because of the consequences that would flow from any finding which the Probe Committee would record against those accused of wrong doings. As seen earlier, Raj Kundra has been found to be a team official of Rajasthan Royals by the Probe Committee. Even according to the concessions made before us by the learned Counsel appearing for Mr. Raj Kundra Jaipur IPL Cricket Private Ltd. he was a duly accredited team official. Such being the position a notice was required to go only to Mr. Raj Kundra for it was he alone who was alleged to have indulged in betting. Mr. Desai's contention that since the Committee did not issue an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fairness and reasonableness and, therefore, call for no interference from us particularly when we are not sitting in appeal over the said findings nor are we required to substitute our own conclusion based on a reappraisal of the material that was available before the Probe Committee for those of the Committee. 44. In the light of what we have stated, the decision of this Court in T.P. Daver's case (supra) does not lend any assistance to the Respondents Raj Kundra or Jaipur IPL Cricket Private Ltd. That was a case arising out of expulsion of the Appellant Mr. Daver as a member of Lodge Victoria No. 363 S.C. at Belgaum on allegations suggesting commission of 12 masonic offences by him. The charges levelled against the Appellant were put to vote and the members of the Masonic Lodge held each one of those charges to have been proved. This culminated in the passing of a resolution expelling the Appellant from the Lodge. An appeal against the said decision was dismissed and so was a further appeal to the Grand Lodge of Scotland who considered the sentence imposed on the Appellant as one of suspension sine die . It was in that background that a suit was instituted by Mr. T.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rise to serious issues of conflict of interest adversely affecting the game so popular in this country that any fraud as suggested was bound to shake the confidence of the public in general and those who love it in particular. Same is the position with the decision of the Bombay High Court in Ambalal Sarabhai and Ors. v. Phiroz H. Antia (AIR 1939 Bom. 35). That was also a case where a member of a social club was expelled from the club and the expulsion challenged in the Court. A Single Judge of the High Court of Bombay in second appeal held that the club had not followed the elementary principles of natural justice which gave enough room to the Civil Court to interfere. The position in the case at hand is in no way analogous to the fact situation of that case. So long as Mudgal Committee has conducted the proceedings in consonance with the principles of natural justice, the Committee's finding that Raj Kundra was a team official of Rajasthan Royals and that he had indulged in betting cannot be faulted. 46. Our answer to question No. 2 is, therefore, in the affirmative. Re: Question No. 3: 47. What possible action is permissible against Mr. Gurunath Meiyappan and Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FFECT of OPERATIONAL RULES Participation in or other involvement with the League is deemed to constitute and to be an acceptance by each person subject to these Operational Rules of an agreement with and obligation owed to BCCI to be bound by and subject to the Regulations, the Laws of Cricket, the terms of each relevant Player Contract (insofar as such Player Contract relates to any Persons subject to these Operational Rules) and the jurisdiction of the BCCI in connection therewith. 2.2 OBLIGATION TO COMPETE/OTHER MATCHES 2.2.1 Each Franchisee shall procure that its Team shall in good faith compete to the best of its ability in the League in general and in each Match in which its Team participates xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx 2.14 CONDUCT Each person subject to these Operational Rules shall not, whether during a Match or otherwise, act or omit to act in any way which would or might reasonably be anticipated to have an adverse affect on the image and/or reputation of such Person, any Team, any Player, any Team Official, the BCCI, the League and/or the Game or which would otherwise bring any of the foregoing into disrepute. xxxx xxxx xxxx ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laying or otherwise being involved in Matches for a specified period; (c) suspend a Team or Franchisee from the League; (d) order the payment of money from a Person subject to these Operational Rules either to BCCI or to another Person including another Person subject to these Operational Rules; (e) order a declaration as to any finding of fact or interpretation of the Regulations and/or any Player Contract. (f) order a deduction of points from a Team; (g) order rectification of a contract or refuse the registration of a Player by BCCI; (h) order the specific performance of an act or matter, or to do or stop doing or not to do something; (i) Impose a financial penalty payable to BCCI or any other Person (j) order any other sanction action that the Commission views as reasonable in the interest of justice. 49. A careful reading of the Operational Rules extracted above would show that every franchisee, player, team official, and/or match official is subject to the said rules. In terms of Rule 2.1 (supra) participation or other involvement with the league is deemed to constitute an acceptance by each person subject to these operational rules of an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et is played in accordance with those sporting imperatives not only because the game itself is described as a gentleman's game but also because adherence to sporting imperatives alone can maintain the public confidence in its purity. The BCCI has, as will appear from a plain reading of the imperatives set out in the Rules, committed itself in no uncertain terms to maintaining public confidence in the game. The BCCI stand firmly committed to the following fundamental sporting imperatives: 1.1.1 All cricket matches are to be contested on a level playing-field, with the outcome to be determined solely by the respective merits of the competing teams and to remain uncertain until the cricket match is completed. This is the essential characteristic that gives sport its unique appeal. 1.1.2 Public confidence in the authenticity and integrity of the sporting contest is therefore vital. If that confidence is undermined, then the very essence of cricket will be shaken to the core. It is the determination to protect that essence of cricket that has led the Board of Control for Cricket in India to adopt this Anti-Corruption Code. 1.1.3 Advancing technology and increasing popularit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h' or 'List A Twenty 20 Match', as those terms are defined in the ICC Classification of Official Cricket (as amended from time to time) including all matches organized by the BCCI. Event. Any competition, tournament, tour, event or equivalent that involves one or more Matches. Ineligibility. Means the Participant is barred for a specified period of time from participation in the sport of cricket, as set out more specifically in Article 6.5. Inside Information. Any information relating to any Match or Event that a Participant possesses by virtue of his/her position within the sport. Such information includes, but is not limited to, factual information regarding the competitors in the Match or Event, the conditions, tactical considerations or any other aspect of the Match or Event, but does not include such information that is already published or a matter of public record, readily acquired by an interested member of the public, or disclosed according to the rules and Regulations governing the relevant Match or Event. Match. A cricket match of any format and duration in length in which two cricket teams compete against each other. Participant. Any Player, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the direct or indirect benefit of the Participant in relation to the result, progress, conduct or any other aspect of any Match or Event. 2.2.3 MISUSE of INSIDE INFORMATION: 2.3.1 Using, for Betting purposes, any inside information 2.3.2 Disclosing inside information to any person (with or without Reward) before or during any Match or Event where the participant might reasonably be expected to know that disclosure of such information in such circumstances could be used in relation to Betting. NOTE: Any potential offence under this Article will be considered on its own set of facts and the particular circumstances surrounding any relevant disclosure. For example, it may be an offence under this clause to disclose inside information: (a) to journalists or other members of the media; and/or (b) on social networking websites where the Participant might reasonably be expected to know that disclosure of such information in such circumstances could be used in relation to Betting. However, nothing in this Article is intended to prohibit any such disclosure made within a personal relationship (such as to a member of the Participants family) where it is reasonable for the Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut by the Designated Anti-Corruption Official (or his/her designee) in relation to possible offences under this Anti-Corruption Code, including failure to provide any information and/or documentation requested by the Designated Anti-Corruption Official (or his/her designee) (whether as part of a formal Demand pursuant to Article 4.3 or otherwise) that may be relevant to such investigation. 2.5.1 Any attempt by a Participant, or any agreement between (a) a Participant and (b) any other person, to act in a manner that would culminate in the commission of an offence under this Anti-Corruption Code, shall be treated as if an offence had been committed, whether or not such attempt or agreement in fact resulted in the commission of such offence. However, there shall be no offence under this Anti-Corruption Code where the Participant renounces the attempt or agreement prior to it being discovered by a third party not involved in the attempt or agreement. 2.5.2 A participant who authorises, causes, knowingly assists, encourages, aids, abets, covers up or is otherwise complicit in any acts or omissions of the type described in Article 2.1-2.4 committed by his/her coach, trainer, manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt has already suffered penalties under other laws and/or Regulations for the same offence; and/or 6.1.2.9 any other mitigating factor(s) that the BCCI Disciplinary Committee considers relevant and appropriate. 6.2 Having considered all of the factors described in Articles 6.1.1 and 6.1.2, the BCCI Disciplinary Committee shall then determine, in accordance with the following table, what the appropriate sanction(s) should be: ANTI CORRUPTION CODE OFFENCE RANGE OF PERMISSIBLE PERIOD OF INELIGIBILITY ADDITIONAL DISCRETION TO IMPOSE A FINE Articles 2.1.1, 2.1.2, 2.1.3 and 2.1.4 (Corruption) A minimum of five (5) years and a maximum of a lifetime. AND (in all cases) the Anti-Corruption Tribunal shall have the discretion to impose a fine on the Player or Player Support Personnel up to a maximum of the value of any Reward received by the Player or Player Support Personnel directly or indirectly, out of, or in relation to, the offence committed under the Anti-Corruption Code. Articles 2.2.1, 2.2.2 and 2.2.3 (Betting) A minimum of two (2) years a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Anti-Corruption Code for participants any act like betting can attract sanctions not only for the person who indulges in such conduct but also for all those who authorise, cause, knowingly assist, encourage, aid, abet, cover up or are otherwise complicit in any act of omission or commission relating to such activity. (iii) Permissible action under the Code of Conduct for Players and the Team Official : 57. Code of conduct for Players and Team Officials also prescribes punishment/sanctions for players or team officials found guilty of different levels of offences stipulated in the said Code. Articles 2.1-2.5 stipulate different levels of offences which, if committed by the players or team officials, can lead to imposition of sanctions against them. Article 2.4.4 is, however, a catch all provision to cover all types of conduct which are not covered by specific offences set out in the Code. It reads: 2.4.4. Where the facts of the alleged incident are not adequately or clearly covered by any of the above offences, conduct that either; (a) is contrary to the spirit of the game; or (b) brings the game into disrepute. Note: Article 2.4.4 is intended to be a 'catch-all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould constitute material adverse effect upon reputation or standing of the league or BCCI-IPL, BCCI, the franchisee, the team or game of cricket shall, however, depend upon the facts and circumstances of each case. What cannot be disputed is that the right to terminate the agreement is available to the BCCI-IPL even in accordance with the provisions of the franchise agreements themselves. 62. Question No. 3 is answered accordingly. Re: Question No. 4: 63. The Probe Committee has recorded a specific finding that the allegations of Match fixing, spot-fixing or betting were not proved against Mr. Srinivasan in the course of the enquiry. That finding was not seriously assailed before us, by Mrs. Chidambaram, counsel for the Appellant Association. What was all the same strenuously argued by the learned Counsel was that the facts brought on record clearly established that Mr. Srinivasan had attempted to cover up the betting activities of his son-in-law who was a team official of CSK. The attempted cover up, it was contended, was a serious offence, which would call for action against him and ICL who owned CSK. The argument was primarily based on the following circumstances an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to take its own course. Inasmuch as the conflict between his own interest as owner of the team that could be disenfranchised and his duty to remain above board, and objective in his capacity as President of the BCCI prevented the truth from coming to light by what was according to Ms. Chidambaram a device contrived to get a clean chit, Mr. Srinivasan had also committed an act of misconduct that could call for suitable punishment for him. 65. It is, in our opinion, difficult to hold that the circumstances enumerated by Mrs. Chidambaram proved by preponderance of probability the charge of cover up leveled against Mr. Srinivasan. The appointment of a Probe Committee comprising former Judges of the High Court cannot be seen as an attempt to cover up nor can Mr. Srinivasan be accused of withholding any incriminating material from the Probe Committee especially when there is nothing to show that Mr. Srinivasan was indeed in possession of any incriminating material that was withheld by him. Mr. Srinivasan had in fact stepped aside while the probe was on to avoid any accusation being made against him. Similarly, the allegation that an effort was made to suppress facts before the Mudgal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument, it appears, was that inasmuch as the amendment permitted in perpetuity a conflict between administrator's duty and his commercial interest, it fell foul of the concept of fairness, transparency and probity in the discharge of public functions by the BCCI and its administrators. 69. The High Court of Bombay has, as seen earlier, repelled the challenge and upheld the amendment in question by its judgment and order impugned in Civil Appeal arising out of SLP (Civil) No. 34228 of 2014. We have, while dealing with question No. 1 above, held that BCCI is amenable to writ jurisdiction Under Article 226 of the Constitution as it discharges Public Functions . The natural corollary flowing from that finding is that all actions which BCCI takes while discharging such public functions are open to scrutiny by the Courts in exercise of their powers Under Article 226 of the Constitution. It also implies that such actions shall when under scrutiny be judged by the standards and on principles that govern similar actions when taken by the State or its instrumentalities. The approach which a Court exercising powers of judicial review of administrative action adopts will remain the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e up all too suddenly for discussion, without any real research or other work to support it and without adequate notice to the members to think about and usefully contribute to the deliberations. 74. That leaves us with the third facet of the question which is not free from difficulty and must therefore be dealt with more comprehensively. The amendment has not been questioned on the ground that the same violates the Tamil Nadu Registration of Societies Act under which BCCI stands registered as a Society. It is also not challenged on the ground that any other Statute regulating such societies is breached. What is contended is that inasmuch as the amendment permits commercial interest to be held by administrators in the events organised by BCCI it violates a fundamental tenet of law that no one can be a judge in his own cause, recognized universally as an essential facet of the principles of natural justice which must permeate every action that BCCI takes in the discharge of its public functions. That contention is not without merit and needs to be carefully explored from different angles. But before we do so we may usefully refer to the decision of this Court in A.K. Kraipak and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e inapplicable to administrative enquiries. Often times it is not easy to draw the line that demarcates administrative enquiries from quasi-judicial enquiries. Enquiries which were considered administrative at one time are now being considered as quasi-judicial in character. Arriving at a just decision is the aim of both quasi-judicial enquiries as well as administrative enquiries. An unjust decision in an administrative enquiry may have more far reaching effect than a decision in a quasi-judicial enquiry. As observed by this Court in Suresh Koshy George v. University of Kerala the rules of natural justice are not embodied rules. What particular rule of natural justice should apply to a given case must depend to a great extent on the facts and circumstances of that case, the framework of the law under which the enquiry is held and the constitution of the Tribunal or body of persons appointed for that purpose. Whenever a complaint is made before a court that some principle of natural justice had been contravened the court has to decide whether the observance of that rule was necessary for a just decision on the facts of that case. 75. Dealing with the conflict of duty and interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o longer res integra. The principles have been held to be a part and parcel of the guarantee contained in Article 14. We may in this connection briefly refer to the decision of this Court in Union of India and Ors. etc. v. Tulsiram Patel etc. (1985) 3 SCC 398 where this Court declared that Principles of natural justice have now come to be recognized as being a part of the constitutional guarantee contained in Article 14 of the Constitution. The Court observed: Violation of a rule of natural justice results in arbitrariness which is the same as discrimination and where discrimination is the result of State action, it is a violation of Article 14. Therefore, a violation of a principle of natural justice by a State action is a violation of Article 14. Article 14, however, is not the sole repository of the principles of natural justice, nor those principles are the creation of Article 14. Article 14 is not their begetter but their constitutional guardian. 77. The above position was reiterated in Central Inland Water Transport Corporation Limited and Anr. v. Brojo Nath Ganguly and Anr. etc. (1986) 3 SCC 156. This Court observed as under: 95. The principles of natural justice ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment permitting such commercial interests disregarding the fact that creation or continuance of such interests will, bring about a serious conflict between the duties of administrators on the one hand and their personal/commercial interest on the other. 80. The Respondents, on the contrary, argue that conflict of interest is a reality of life and exists in any number of situations some of them at times unavoidable. But, what is important is that the Rules should provide for resolving the conflict. Relying upon, rules applicable to conflict of interests in different sporting bodies, it was contended by Mr. Sibal that unless, the conflict of interests is no room for any resolution; the rule cannot and should not be struck down simply because it may give rise to a conflict of interest at any time in future. 81. There is no gainsaid that a conflict of interest situation may arise even when the rules or the norms do not specifically authorize acts or transactions that may lead to such a conflict. The scheme of the rules, may itself suggest that a conflict of interest is not welcome. And yet, such a conflict may at times arise, in which event, the rules can provide for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g decision that benefited India Cements Ltd. a company promoted by Mr. Srinivasan. The fact that some others also participated in the decision making process as members of IPL Governing Council does not cure the legal flaw arising out of the benefactor also being the beneficiary of the decision. The situation is analogous to Naqishbund participating in the selection proceedings even when he was himself a candidate for selection as in Kraipak's case (supra). As a matter of fact, Naqishbund had recused himself from the proceedings when his own case was taken up for consideration. But this Court remained unimpressed and took the view that any such recusal did not make any material difference, as bias in such like situations operates in a subtle manner. In the case at hand Mr. Srinivasan had not even done that much no matter it would have made little or no difference even if he had done so. At any rate, the test is not whether bias was actually at work when the decision was taken. It is the reasonable likelihood of bias that determines whether the action can be faulted. A reasonable likelihood of bias is what can be seen even in the case at hand when the decision to award compensat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conflict of interest although, the Appellant has relied upon several other matters in which there is a potential conflict between his duty as President of the BCCI and his commercial interest. Suffice it to say that amendment to Rule 6.2.4 is the true villain in the situation at hand. It is the amendment which attempts to validate what was on the date of the award of the franchise invalid as Rule 6.2.4 did not as on that date permit an administrator to have any commercial interest in any event organized by BCCI. While it may not be feasible at this stage to interfere with the award of the franchise to ICL especially when hundreds of crores have been invested by the franchisee, the amendment which perpetuates such a conflict cannot be countenanced and shall have to be struck down. 85. The validity of the Rule 6.2.4 as amended can be examined also from the stand point of its being opposed to Public Policy But for doing so we need to first examine what is meant by Public Policy as it is understood in legal parlance. The expression has been used in Section 23 of the Indian Contract Act, 1872 and in Section 34 of the Arbitration and Conciliation Act, 1996 and a host of other sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conduct an inquiry as to the prevailing moral concept. Such an extended extra-judicial enquiry is wholly outside the tradition of courts where the tendency is to trust the Judge to be a typical representative of his day and generation . Our law relies, on the implied insight of the Judge on such matters. It is the Judges themselves, assisted by the bar, who here represent the highest common factor of public sentiment and intelligence. No doubt, there is no assurance that Judges will interpret the mores of their day more wisely and truly than other men. But this is beside the point. The point is rather that this power must be lodged somewhere and under our Constitution and laws, it has been lodged in the Judges and if they have to fulfil their function as Judges, it could hardly be lodged elsewhere. (Emphasis supplied) 87. In Central Inland Water Transport Corporation (supra) this Court was also considering the import of the expression 'Public Policy' in the context of the service conditions of an employee empowering the employer to terminate his service at his sweet will upon service of three months notice or payment of salary in lieu thereof. Explaining the dynamic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adopted in the matter: 31. Therefore, in our view, the phrase public policy of India used in Section 34 in context is required to be given a wider meaning. It can be stated that the concept of public policy connotes some matter which concerns public good and the public interest. What is for public good or in public interest or what would be injurious or harmful to the public good or public interest has varied from time to time. However, the award which is, on the face of it, patently in violation of statutory provisions cannot be said to be in public interest. Such award/judgment/decision is likely to adversely affect the administration of justice. Hence, in our view in addition to narrower meaning given to the term public policy in Renusagar case it is required to be held that the award could be set aside if it is patently illegal. The result would be--award could be set aside if it is contrary to: (a) fundamental policy of Indian law; or (b) the interest of India; or (c) justice or morality, or (d) in addition, if it is patently illegal. Illegality must go to the root of the matter and if the illegality is of trivial nature it cannot be held that award is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed fundamental to the policy of Indian law is the principle that a court and so also a quasi-judicial authority must, while determining the rights and obligations of parties before it, do so in accordance with the principles of natural justice. Besides the celebrated audi alteram partem rule one of the facets of the principles of natural justice is that the court/authority deciding the matter must apply its mind to the attendant facts and circumstances while taking a view one way or the other. Non-application of mind is a defect that is fatal to any adjudication. Application of mind is best demonstrated by disclosure of the mind and disclosure of mind is best done by recording reasons in support of the decision which the court or authority is taking. The requirement that an adjudicatory authority must apply its mind is, in that view, so deeply embedded in our jurisprudence that it can be described as a fundamental policy of Indian law. 39. No less important is the principle now recognised as a salutary juristic fundamental in administrative law that a decision which is perverse or so irrational that no reasonable person would have arrived at the same will not be sustained in a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its power to prevent corrupt betting practices undermining the integrity of the sport including any effort to influence the outcome of any match. Unfortunately, however, the amendment to Rule 6.2.4 clearly negates the declarations and resolves of the BCCI by permitting situations in which conflict of interest would grossly erode the confidence of the people in the authenticity, purity and integrity of the game. An amendment which strikes at the very essence of the game as stated in the Anti Corruption Code cannot obviously co-exist with the fundamental imperatives. Conflict of interest situation is a complete anti-thesis to everything recognized by BCCI as constituting fundamental imperatives of the game hence unsustainable and impermissible in law. 91. Before we wind up the discussion on the validity of Rule 6.2.4 and the vice of conflict of interest it permits after the impugned amendment, we may in brief deal with the submissions which Mr. Kapil Sibal, learned senior counsel for the respondent Mr. Srinivasan urged before us. It was contended by Mr. Sibal that IPL was conceived as a commercial enterprise, structured in a manner that it eliminated all possibility of conflict of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds enroll for the auction. Players cannot pick or choose a franchisee to play once enlisted for the auction. The player intake by a franchisee is dependent on Open Market principles. In the IPL, the players are allowed to be traded between franchisees within the rules of permitted salary caps as detailed in the Players Regulations. (vi) Entertainment of the public hitherto not interested in the sport, i.e. bringing in newer fans to the game has been a goal of the IPL whereas representative cricket is the more serious version and a pathway to the National Selection. 92. There is no gainsaying that Mr. Sibal was right in contending that in certain areas the BCCI or anyone of its administrators/office bearers does not have any discretion except to go by what is prescribed as a uniform pattern for all the franchisees. But, to say that there is no possibility of any conflict of interest arising in IPL format between an administrator s duty and the commercial interest if any held by him is not in our opinion correct. The three live situations to which we have adverted in the earlier part of this order in which a conflict has arisen in the case at hand only prove that conflict of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ports has assumed greater importance over the past few decades. Despite this, however, several sports bodies in this country have got involved in group fights leading to litigation in the process losing sight of the objectives which such societies and bodies are meant to serve and achieve. This Court therefore emphasized the need for setting right the working of the societies rather than adjudicating upon the individual s right to office by reference to the provisions of law relating to meetings, injunctions, etc. The following passage from the Murugon s decision (supra) is a timely reminder of the need of the hour: 12. This does not appear to us to be a matter where individual rights in terms of the rules and regulations of the Society should engage our attention. Sports in modern times has been considered to be a matter of great importance to the community. International sports has assumed greater importance and has been in the focus for over a few decades. In some of the recent Olympic games the performance of small States has indeed been excellent and laudable while the performance of a great country like India with world s second highest population has been miserable. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itutional integrity and declared that an institution is more important than an individual. The following passage from the decision is apposite: 45. .. Thus, we are concerned with the institution and its integrity including institutional competence and functioning and not the desirability of the candidate alone who is going to be the Central Vigilance Commissioner, though personal integrity is an important quality. It is the independence and impartiality of the institution like the CVC which has to be maintained and preserved in the larger interest of the rule of law (see Vineet Narai (1988) 1 SCC 226). 96. BCCI is a very important institution that discharges important public functions. Demands of institutional integrity are, therefore, heavy and need to be met suitably in larger public interest. Individuals are birds of passage while institutions are forever. The expectations of the millions of cricket lovers in particular and public at large in general, have lowered considerably the threshold of tolerance for any mischief, wrong doing or corrupt practices which ought to be weeded out of the system. Conflict of interest is one area which appears to have led to the current ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions stipulated in the agreement. There is, therefore, no manner of doubt that the investment made by India Cements Ltd. is a business investment no matter in a sporting activity. To the extent the business investment has come from India Cements Ltd. promoted by Mr. Srinivisan and his family, India Cements and everyone connected with it as shareholders acquire a business/commercial interest in the IPL events organised by BCCI. The association of India Cements Ltd. and Mr. Srinivasan with IPL is being faulted on account of this commercial interest which India Cements Ltd. has acquired for itself. Whether or not players engaged as mentors, coaches, managers or commentators in connection with the events for remuneration payable to them will also be ineligible for any such assignment does not directly fall for our consideration in these proceedings. That apart, it may well be argued that there is a difference between commercial interest referred to in Rule 6.2.4 and professional engagement of a player on account of his proficiency in the game. It may be logically contended that the engagement of a player even though made on a remuneration remains a professional engagement b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oin investigation and part with the information available with him. 101. In its final report dated on 1.11.2014 the Probe Committee recorded a finding that Mr. Sundar Raman, described as Individual 12 in that report, had known a bookie and had contacted him at eight different times in the IPL. The Committee said: This individual knew a contact of a bookie and had contacted him eight times in one season. This individual admitted knowing the contact of the bookies but however claimed to be unaware of his connection with betting activities. This individual also accepted that he had received information about individual 1 and individual 11 taking part in betting activities but was informed by ICC-ACSU chief that this was not actionable information. This individual also accepted that this information was not conveyed to any other individual. 102. In the objection filed before this Court, Mr. Sundar Raman has, inter alia, argued that the Probe Committee has not recorded any specific finding that he had knowledge of Mr. Vindoo Dara Singh being a bookie. It is also asserted by Mr. Sundar Raman that he knew of Mr. Vindoo Dara Singh only as a celebrity who used to frequently a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to hold a very important position in the entire system. On his own showing he was dealing with practically all aspects of organization of the game, including facilitating whenever necessary the appearance and participation of celebrities and organizing tickets, accreditation cards and such other matters. He was, therefore, the spirit behind the entire exercise and cannot be said to be unconcerned with what goes on in the course of the tournament especially if it has the potential of bringing disrepute to the game/BCCI. We are, therefore, not inclined to let the allegations made against Mr. Sundar Raman go un-probed, even if it means a further investigation by the investigating team provided to the probe committee or by any other means. Truth about the allegations, made against Mr. Sundar Raman, must be brought to light, for it is only then that all suspicions about the fraudulent activities and practices floating in the media against the BCCI and its administrators in several proceedings before different courts can be given a quietus. Having said that we propose to issue appropriate directions regarding further investigation and probe into the activities and conduct of Mr. Sundar R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to examine and make suitable recommendations on the following aspects: (i) Amendments considered necessary to the memorandum of association of the BCCI and the prevalent rules and regulations for streamlining the conduct of elections to different posts/officers in the 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 the BCCI. (ii) Amendments to the memorandum of association, and rules and regulation considered necessary to provide a mechanism for resolving conflict of interest should such a conflict arise despite Rule 6.2.4 prohibiting creation or holding of any commercial interest by the administrators, with particular reference to persons, who by virtue of their proficiency in the game of Cricket, were to necessarily play some role as Coaches, Managers, Commentators etc. (iii) Amendment, if any, to the Memorandum of Association and the Rules and Regulations of BCCI to carry out the recommendations of the Probe Committee headed by Justice Mudgal, subject to such recommendations being found acceptable by the newly appointed Committee. (iv) Any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... morandum of Association, Rules and Regulations as may be considered necessary and proper on matters set out by us in Para number 109 of this order. (V) The constitution of the Committee or its deliberations shall not affect the ensuing elections which the BCCI shall hold within six weeks from the date of this order in accordance with the prevalent rules and regulations subject to the condition that no one who has any commercial interest in the BCCI events (including Mr. N. Srinivasan) shall be eligible for contesting the elections for any post whatsoever. We make it clear that the disqualification for contesting elections applicable to those who are holding any commercial interest in BCCI events shall hold good and continue till such time the person concerned holds such commercial interest or till the Committee considers and awards suitable punishment to those liable for the same; whichever is later. (VI) The Committee shall be free to fix their fees which shall be paid by the BCCI who shall, in addition, bear all incidental expenses such as travel, hotel, transport and secretarial services, necessary for the Committee to conclude its proceedings. The fees will be paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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