Supreme Court Judgment, January 2, 2017
Supreme Court Judgment, January 2, 2017
Supreme Court Judgment, January 2, 2017
.....APPELLANT
Versus
WITH
CIVIL APPEAL No. 4236 OF 2014
WITH
CIVIL APPEAL No. 1155 OF 2015
ORDER
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judgment and order of this Court dated 18 July 2016. The judgment of this Court
has attained finality. Review and Curative petitions have also been dismissed. By
its judgment, this Court has accepted the recommendations made by the
Committee in a report dated 18 December 2015 providing for reforms in the
structure, organization and working of BCCI. Such an exercise is necessary in
order to make the functioning of BCCI transparent, objective and accountable to
the trust with which it is impressed, as a body which presides over the affairs of a
sport which has millions of followers. This Court had by its judgment expressed
the hope that the process of implementing its directions would be completed
within a period of four months or, at best, six months. The status report submitted
by the Committee recorded that the directions of this Court were ignored, actions
were taken by BCCI to present a fait accompli to the Committee and the
directives issued by the Committee were breached. The Committee observed
that BCCI has repeatedly taken steps to undermine its authority and this Court
with several statements and actions which are grossly out of order and would
even constitute contempt.
3
On 7 October 2016, while taking note of the status report submitted by the
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On 7 October 2016, this Court took note of the fact that despite the
directions which the Committee issued on 21 August 2016 that the AGM of BCCI
may transact only routine business for 2015-2016 and that any business or
matter for 2016-2017 may be dealt with only after the adoption of the
Memorandum of Association and rules in pursuance of the recommendations of
the Committee, substantial amounts running into crores of rupees were
disbursed in favour of State Associations. BCCI had informed the court that one
of the reasons for its failure to adopt the proposed MoA was the reluctance of its
State Associations to subscribe to it. In this background, the court was
constrained to issue directions inter alia to the effect that no further amounts shall
be disbursed to the State Associations except to those associations which
undertake the reforms suggested by the Committee and accepted by the court.
5
Another issue which was of concern was the conduct of the President of
BCCI (Mr Anurag Thakur) who, the Committee recorded as having asked the
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CEO of ICC to state that the Committee appointed by this Court amounted to
governmental interference. It may be noted here that in an interview to the
electronic media, the CEO of ICC stated that the President of BCCI sought a
letter from ICC that the appointment of a nominee of CAG (as directed by this
Court on 18 July 2016 in terms of the recommendations of the Committee) would
amount to governmental interference inviting the suspension of BCCI from the
membership of ICC. By its order dated 7 October 2016, the President of BCCI
was directed to file a personal affidavit clarifying the position.
6
There were two versions before this Court in regard to what had transpired
Page4
On the other hand, the President of BCCI in his response (filed pursuant to the
directions of this Court) stated as follows :
In this context it is respectfully submitted that there
was an ICC governance review committee meeting
scheduled to be held in Dubai on 6th& 7th August
2016. There were certain issues relating to
financial model for which my inputs were required
and as such I was invited by ICC for the said
meeting. During the meeting with regard to the
review of the constitutional provisions of ICC, I
pointed out to the Chairman of the ICC, Mr.
Shashank Manohar that when he was the
President of BCCI he had taken a view that the
recommendations of the Justice Lodha committee
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denial that its President had requested ICC to issue a letter stating that the
Committee amounted to governmental interference. On the other hand, in the
affidavit which the President of BCCI filed in pursuance of the directions of this
Court dated 7 October 2016 he accepted having made a request to the Chairman
of ICC for issuing a letter clarifying the position which he had taken as BCCI
President (that the recommendation of the Committee for appointment of a CAG
nominee would amount to governmental interference and may lead to a
suspension of BCCI from ICC membership). Mr Shetty had not disclosed that
there was any such request for a letter made by the President of BCCI whereas
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according to the latter he had made such a request. Mr Shetty in fact denied that
any request for a letter was made to the ICC President by Mr Anurag Thakur.
8
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After reviewing whether due and adequate steps were taken by BCCI to
implement the final judgment of this Court, this Court in its order dated
21 October 2016 recorded the following findings :
15. For the reasons which have weighed with us in
the earlier order of this Court dated 7 October 2016
and for those which we have adduced above, we
are inclined to take a serious view of the conduct of
BCCI in the present case. Despite the prima facie
findings which were arrived at in the previous
order, the further hearing was deferred. There has
been no change in the position of BCCI. The
intransigence continues. If BCCI had any
difficulties about adhering to the timelines laid
down by the Committee, the appropriate course
would have been to move the Committee. Even
the grievance which was urged during this
proceeding by BCCI, that some of the directions of
the Committee have travelled beyond the
parameters set by this Court can and ought to be
urged before the Committee in the first instance.
(emphasis supplied)
10
that BCCI would establish its bonafides before the Committee by establishing the
compliance made of those of its recommendations which are stated to have been
fulfilled. Accordingly, in order to furnish BCCI with an opportunity to demonstrate
its compliance with the directions of this Court, we desisted from issuing a
direction at that stage for the appointment of administrators (as sought by the
Committee) in the hope that BCCI would comply with the judgment and order of
this Court in the meantime. While doing so, this Court observed that :
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10
11
2016, the Committee filed another status report on 7 November 2016 on which
orders were passed by this Court on 8 November 2016. The Committee has filed
another status report on 14 November 2016 seeking the following directions :
(i)
That all office bearers of BCCI and State Associations who stand
disqualified by virtue of the norms contained in its report dated 4
October 2016 and accepted by this Court must cease to hold office
forthwith;
(ii)
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11
(iii)
The Committee has suggested that its own role may be confined to overall policy
and direction and not the actual administration of BCCI.
12
December 2016. The affidavit states that neither the President nor the Secretary
of BCCI command voting rights in the meetings of the Working Committee. The
affidavit states in the following terms that the State Associations have declined to
accept the recommendations made by the Committee and accepted by this
Court :
Accordingly the Hon Secretary convened the said
meeting referred to above of the General Body of
the BCCI for the 30.9.2016.
The meeting resumed the next day i.e. on
1.10.2016.
I further state that I as Hon. President do not have
a vote when I sit in the general body meeting
neither does the Hon. Secretary.
I further state that I as a Hon. President am in
no position to force members to adopt the full
memorandum as recommended, even though
armed with an order of this Honble Court, as the
members are of the opinion that as per the
provisions of the Tamil Nadu Societies Registration
Act, 1975 under which the BCCI is registered, they
can amend their memorandum only when three
fourths of the members present and entitled to
vote, accept the changes to the memorandum.
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12
13
The position as it has emerged before the court is that despite the fact that
there is a judgment and final order dated 18 July 2016 accepting the report
submitted by the Committee, the implementation of the directions issued by this
Court has been obstructed and impeded. By the order of this Court of 7 October
2016 and the subsequent directions that were issued on 21 October 2016,
sufficient time was granted to BCCI to abide by the judgment and order of this
Court.
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13
14
taken the position that it was only if its Review Petition as well as Curative
Petition were dismissed, that the recommendations of the Committee would be
accepted. This statement of BCCI at a meeting of its Working Committee held on
21 October 2016 was manifestly misconceived. Once this Court had affirmed the
recommendations of the Committee (with modifications) in a final judgment and
order dated 18 July 2016, the judgment had to be implemented as it stands. By
the Order of this Court dated 21 October 2016, this Court made it clear, if indeed
such a clarification was at all warranted, that :
A party to a litigation cannot be heard to say that it
would treat a judgment of this Court as not having
binding effect unless the Review or Curative
Petitions that it has filed are dismissed.
15
also been dismissed. Yet, the intransigence of BCCI has continued. The course
of events indicates that though sufficient opportunities have been granted to
BCCI to comply with the judgment and order of this Court, it has failed to do so.
The President and Secretary and office bearers of BCCI have obstructed the
implementation of the final directions of this Court on the basis of a specious plea
that its State Associations are not willing to abide by the directions. This Court
having furnished sufficient opportunities to BCCI to comply, it is constrained now
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14
to take recourse to coercive steps to ensure that the directions contained in its
final judgment and order are not left to be a writ in sand.
16
The Committee consists of a former Chief Justice of India and two former
Judges of the Supreme Court. They have together been tasked with overseeing
implementation of the judgment of this Court. Yet, the Committee has repeatedly
been confronted with a barrage of unfortunate comments by BCCI in Press
conferences and in correspondence with an intent that it should be led to a
situation where it throws up its arms in despair and frustration.
17
by this Court are the following disqualifications for being an office bearer of BCCI
and of the State Associations :
A person shall be disqualified from being an Office Bearer if he
or she :
(a) Is not a citizen of India;
(b) Has attained the age of 70 years;
(c) Is declared to be insolvent, or of unsound mind;
(d) Is a Minister or Government Servant;
(e) Holds any office or post in a sports or athletic association or
federation apart from cricket;
(f) Has been an Office Bearer of the BCCI for a cumulative
period of 9 years;
(g) Has been charged by a Court of Law for having committed
any criminal offence.
18
The Committee has in its status report dated 14 November 2016 drawn the
attention of the court to the fact that several office bearers both of BCCI and the
State Associations continue to hold posts although they stand disqualified in
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15
terms of the above norms which have been accepted by this Court. Persons who
have a vested interest in continuing in their positions inspite of the norms noted
above have ensured that the writ of the court is obstructed and impeded. We
need to emphasise that the turf of the cricket field is not a personal turf or
fiefdom. We must hence order and direct that no person shall hereafter continue
to be or be entitled for appointment as office bearer of BCCI or a State
Association in breach of the above norms. All existing office bearers of BCCI and
of the State Associations who do not fulfill the above norms shall with effect from
the date of this Order stand disqualified.
19
That leads the court to the issue of the conduct of Shri Anurag Thakur,
President of BCCI. By the final judgment and order of this Court dated 18 July
2016, the plea that the appointment of a nominee of CAG would amount to
governmental interference with the affairs of BCCI was specifically negatived. By
its judgment, this Court had observed as follows :
77. There is, in our view, no basis for the
argument that any measure taken by the BCCI on
its own or under the direction of a competent court
specially when aimed at streamlining its working
and ensuring financial discipline, transparency and
accountability expected of an organization
discharging public functions such as BCCI may be
seen as governmental interference calling for
suspension/derecognition of the BCCI. Far from
finding fault with presence of a nominee of the
Accountant General of the State and C&AG, the
ICC would in our opinion appreciate any such step
for the same would prevent misgivings about the
working of the BCCI especially in relation to
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16
20
Once this position had been laid down by the court, there was no occasion
for the President of BCCI at the ICC Governance Review Committee Meeting
held at Dubai on 6 and 7 August 2016 to solicit a letter from the Chairperson of
ICC. Such a solicitation was but an effort to thwart the implementation of the
orders of the court. An attempt was made to build up a record to indicate that
implementing the orders of the Supreme Court of India would run the risk of
endangering the status of BCCI as a member of ICC. In pursuance of the Order
of this Court, Mr. Shashank Manohar (President ICC) has in an email dated
2 November 2016 addressed to the Committee made the following disclosure :
I would like to state that there was a meting of the
Working Group of the ICC held at Dubai on the 6 th
August, 2016 to consider the ICCs Governance
and Financial Structure. At the meeting, apart from
myself and Mr Anurag Thakur, Mr Giles Clarke,
Mr David Peever and Mr Imran Khwaja, who are all
Directors of ICC were present. The ICC CEO,
Mr David Richardson and ICC COO Mr. Lain
Higgins were also present..
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17
21
BCCI requested him on 6 August 2016 to issue a letter in his capacity as ICC
Chairman in terms of the position that he had adopted as the President of BCCI
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18
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19
prior to the Order of this Court dated 21 October 2016. If those minutes were
before Mr Shetty, he would have made a disclosure in their terms. The purported
minutes read as follows :
Mr. Anurag Thakur was in the Chair and called the
meeting to order and welcomed the members. He
briefed the members about his meeting with the
ICC Chairman at Dubai during the ICC governance
review committee meeting on 6th & 7th August
2016. Certain financial mode inputs were required
during the said meeting which he gave. During the
meeting with regard to the review of the
constitutional provisions of ICC it was informed by
Mr. Thakur that he asked Chairman ICC Mr.
Shashank Manohar that when he was the
President of BCCI he had taken a view that the
recommendations of Justice Lodha committee
appointing the nominee of the CAG on the Apex
Council
would
amount
to
governmental
interference and might invoke an action of
suspension from ICC. It was therefore requested
from him that he being the ICC Chairman could
a letter be issued clarifying the position which
he had taken as BCCI President. Mr. Manohar
thereafter explained that when the stand was taken
by him the matter was pending before the
Supreme Court and was not decided. However on
18th of July 2016 the Hon. Supreme Court of India
delivered its judgment and the Court has rejected
the submission that the appointment of the
nominee of CAG on Apex council will amount to
Governmental interference and had also held that
the ICC would appreciate the appointment as it
would bring transparency in the finances of the
Board. The discussion stopped in view of his
explanation on this issue. (emphasis supplied)
22
Prima facie it would appear that these minutes had not seen the light of the
day when the response by Mr Shetty to the status report of the Committee was
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filed, and have been fabricated subsequently to lend credence to the version of
Mr Thakur. The statement that Mr Manohar was requested to clarify the position
which he had taken as BCCI President is falsified by Mr Manohars disclosure
that he was asked to give a letter in his capacity as ICC Chairman.The version of
Mr Thakur that he had requested Mr Manohar that he being ICC Chairman can a
letter be issued clarifying the position which he had taken as BCCI President is
belied by the disclosure which has been made by Mr Shashank Manohar.
Mr Manohar s response dated 2 November 2016 clearly indicates that during the
course of the meeting at Dubai on 6 August 2016, Mr Thakur requested him to
issue a letter in his capacity as ICC Chairperson that the appointment of a
nominee of CAG in BCCI might amount to governmental interference, leading to
action of suspension from ICC. Prima facie, it emerges from the record that
Mr Thakur did seek such a letter from the ICC Chairperson as stated by
Mr Manohar. The disclosure which Mr Thakur has made in his affidavit dated 15
October 2016 is prima facie false to his knowledge. Prima facie, we also find that
the minutes of the meeting of the Working Committee of BCCI which were
produced before this Court have been made up to lend support to the version of
Mr Thakur.
23
actions and conduct rendered himself unfit for continuance as President of BCCI,
for the following reasons :
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21
from an order dated 28 March 2014 passed by a Bench of two learned Judges of
this Court consisting of Honble Mr Justice A K Patnaik and Honble Mr Justice F
M I Kalifulla. In view of the circumstances which had then arisen resulting in the
President of BCCI being unable to perform his duties, this Court appointed a
distinguished cricket sportsperson, as an interim measure, to exercise the
powers of the President in relation to IPL 2014. With regard to all other matters,
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22
the senior most Vice-President of BCCI was under the orders of the Court
permitted to discharge the functions of the President, BCCI.
25
(i)
All the office bearers of BCCI and of its affiliated State Associations who
fail to meet the norms recommended by the Committee and accepted by
this Court, shall forthwith demit and cease to hold office namely:
A person shall be disqualified from being an Office Bearer if he or she :
(a) Is not a citizen of India;
(b) Has attained the age of 70 years;
(c) Is declared to be insolvent, or of unsound mind;
(d) Is a Minister or government servant;
(e) Holds any office or post in a sports or athletic
association or federation apart from cricket;
(f) Has been an Office Bearer of the BCCI for a
cumulative period of 9 years;
(g) Has been charged by a Court of Law for having
committed any criminal offence.
(ii)
Shri Anurag Thakur, President of BCCI and Shri Ajay Shirke, Secretary,
BCCI shall forthwith cease and desist from being associated with the
working of BCCI;
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23
(iii)
(iv)
(v)
(vi)
This Court shall by a separate order nominate the persons who shall form
part of the Committee of administrators. In order to enable the Court to
have the benefit of objective assistance in making the nominations, we
request Mr Fali S Nariman, learned Senior Counsel and Mr Gopal
Subramaniam, the learned Amicus Curiae to assist the Court by
suggesting names of persons with integrity and experience in managing a
similar enterprise. We request the learned Counsel appearing on behalf of
the parties to also place their suggestions before the Court so as to
facilitate a considered decision;
(vii)
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(viii) In view of the directions contained in (ii) above, the senior most
Vice-President of BCCI shall perform the duties of the President, BCCI and
the Joint Secretary shall perform the duties of Secretary. Those of the
office bearers of BCCI who are not disqualified in terms of clause (i) above
(other than the President and Secretary) may continue subject to their filing
an unconditional undertaking before this Court within four weeks of the
date of this order to abide by and implement the directions contained in the
judgment dated 18 July 2016. Upon the Committee of administrators as
nominated by this Court assuming charge, the existing office bearers shall
function subject to the supervision and control of the Committee of
administrators. The Committee of administrators would have the power to
issue all appropriate directions to facilitate due supervision and control;
and
(ix)
(x)
We would request the leaned Senior Counsel and the learned Amicus
Curiae to endeavour to submit their suggestions to this Court within two
weeks. The proceedings shall be listed before this Court on 19 January
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..............................................CJI
[T.S. THAKUR]
...............................................J
[A. M. KHANWILKAR]
..................................................J
[Dr D Y CHANDRACHUD]
New Delhi
January 02, 2017
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