2015 (1) TMI 1428
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....., Ms. Pooja Dhar,Adv., Mr. C.A.Sundram, Sr. Adv., Mr. P.R. Raman, Adv., Ms Akhila Kaushik, Adv., Ms. Radha Rangaswamy,Adv., Mr. S.P. Arthi, Adv., , Mr. Rahil Masearenhans, Adv., Ms. Rohini Musa, Adv., Ms. Ranjeeta Rohtagi, Adv., Mr. Amol Chitale, Adv., Ms. Pragya Baghel,Adv., Mr. Salim inamdar, Adv., Mr. P.B. Raman, Sr. Adv., Mr. T.K. Bhaskar, Adv., Mr. K.Harishankar, Adv., Mr. Aditya Verma, Adv., Ms. Chaitra Rawat,Adv., Ms. S.Lakshmi, Adv., Mr. Vikas Singh Jangra,Adv., Ms. Aarti Goyal, Adv., Ms. Tamali Wad, Adv., Mr. Siddharth Vaid, Adv., Mr. Ishwar Mohanty, Adv., Mr. Vaibhav Sharma, Adv., Mr. Rohan Shah, Adv., Mr. Deep Roy, Adv., Mr. Anthony Handique, Adv., Mr. Anish Dayal, adv., Mr. Kirat Singh Nagara, Adv., Mr. Monish Panda, Adv., Mr. Kshitiz Karjee, Adv., Mr. Shekhar Naphade, Sr. Adv., Mr. Dayan Krishnan, Sr. Adv., Ms. Neha Sharma, Adv., Mr. Deeptakriti Verma, Adv., Mr. Siddharth Luthra, Sr. adv., Mr. Ishwar Nankani, Adv., Ms. Roshmi Singh, Adv., Mr. Mishra Saurabh, Adv., Mr. Gaurav Sharma, Adv., Mr. Hari Shankar K., Adv., Mr. M. Yogesh Kanna, Adv., Ms. Vanita Chandrakant Giri, Adv., Mr. Rahul Pratap ,Adv. JUDGMENT T.S. Thakur, J. 1. Leave granted. 2. Allegations of sport....
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....tered under the Societies Registration Act, 1860 just as Respondent - BCCI is a Society registered under the provisions of Tamil Nadu Registration of Societies Act 1975. Mr. N. Srinivasan - Respondent No. 2 in Civil Appeal No. 4236 of 2014 is the President of the Board besides being the Vice-Chairman and Managing Director of Respondent No. 3-India Cements Limited, a public Limited Company. 5. In a meeting held on 13th September, 2007, the working committee of the Respondent-Board appears to have taken a decision to launch what came to be known as Indian Premier League (IPL) to be run by a Committee constituted by general body of the BCCI to be called IPL Governing Council. In December 2007 the IPL Governing Council invited tenders for grant of IPL franchises on open competitive bidding basis, in which only corporate bodies were allowed to participate. India Cements Ltd. was one of those who participated in the auction for the Chennai franchise and emerged successful in the same. The team it assembled was christened Chennai Super Kings. Jaipur IPL Cricket Private Limited partly owned and promoted by Respondent No. 5 similarly emerged successful for the Jaipur Franchise and assemble....
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....olvement in betting and spot fixing. The Petitioner further prayed for termination of the franchise agreement entered into between the BCCI, on the one hand, and Chennai Super Kings and Rajasthan Royals on the other. A mandamus directing institution of disciplinary proceedings against Mr. N. Srinivasan was also prayed for, besides a prayer for his suspension pending the probe and other proceedings. The Appellant-Association in addition prayed for a prohibition against Mr. N. Srinivasan restraining him from contesting the election for the post of President of BCCI in future and representing the BCCI in the International Cricket Council (ICC). 9. By its order dated 30th July, 2013, a Division Bench of the High Court of Bombay declared that the Probe Commission set up by the BCCI was not validly constituted being in violation of the provisions of Rules 2.2 and 3 of Section 6 of the IPL Operational Rules. The High Court, however, declined to grant any further relief by way of constituting a panel to conduct an enquiry under the supervision of the High Court. The High Court was of the view that constitution of a Probe Committee Under Section 6 of the IPL Operational Rules was the prero....
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.... 2014, in which the Committee arrived at the following conclusions: (i) That Gurunath Meiyappan formed an integral part of Chennai Super Kings and most persons viewed him as the face of the team, though de-jure ownership vested in India Cements Ltd. (ii) That Gurunath Meiyappan was a team official within the meaning of IPL Operational Rules if not de facto owner of CSK. (iii) That Gurunath Meiyappan had knowledge of or was in a position to easily access sensitive team information, team strategies knowledge about match conditions etc. which knowledge was outside the purview of an ordinary person following the game of cricket. (iv) That Gurunath Meiyappan was also a participant under IPL Anti-corruption Code hence IPL Rules and Regulations were squarely applicable to him. (v) That Gurunath Meiyappan was in regular touch with bookies and punters. (vi) That several calls were traced between Gurunath Meiyappan and Vindoo Dara Singh who was himself a punter in close proximity with several other bookies, evident from the telephonic transcripts produced by the Bombay Police. (vii) That Mr. Ramesh Vyas and Jupiter were acting for Vindoo Dara Singh who was also placing bets for....
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....er India Cements, Mr. Meiyappan is in violation of Sections 2.2.1 and 2.14 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 his 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. The said illegal acts further stand accentuated in light of his position/role in CSK. The Committee is also of the opinion that the franchisee owner of CSK is responsible for failing to ensure Mr. Meiyappan (Team Officials) had complied with the BCCI Anti-Corruption Code, IPL Operational rules, IPL Regulations and hence the franchisee's actions are in violation of Section 4.4.1 of the IPL Operational Rules and Clause 11.3 of the franchises agreement. (Emphasis supplied) 14. As regards the allegations of betting and spot-fixing in IPL made against Mr. Raj Kundra, the Committee opined that further and serious investigation was required to be conducted into the said allegations for the allegations of betting if proved against Mr. Kundra and his wife Ms. Shilpa Shetty, would constitute a serious infraction of the provisions of IPL Operati....
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....aluation was necessary. The Committee's final report took note of the scientific evaluation and recorded a unanimous conclusion that Mr. Gurunath Meiyappan had actually indulged in betting in IPL matches. It, however, found no material to show that Gurunath Meiyappan was involved in match fixing. 17. As regards Mr. Raj Kundra, the Committee came to the conclusion that Mr. Kundra had indulged in betting in violation of BCCI Regulations and IPL Anti-Corruption Code. The Committee further came to the conclusion that N. Srinivasan was not involved in match fixing activity nor was he involved in preventing investigation into match fixing. The Committee held that although Mr. N. Srinivasan was aware of the violation of the players' code, by individual No. 3 yet no action was taken against him by Mr. Srinivasan or any other official who was aware of the infraction. 18. Copies of the report except the portion that related to findings qua the players were made available to counsel for the parties to give them an opportunity to respond to the same. Since Mr. Raj Kundra and Mr. Gurunath Meiyappan were not parties to these proceedings, this Court issued notice to them enclosing and m....
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....such decisions pronounced over the past few decades not only because the law is by now fairly well settled by Constitution Bench decisions of this Court but also because the question whether or not BCCI is 'State' within the meaning of Article 12 may not make any material difference to the case at hand in view of the admitted position that Respondent-BCCI does discharge several important public functions which make it amenable to the writ jurisdiction of the High Court Under Article 226 of the Constitution of India. We may all the same refer to a few landmarks on the judicial landscape only as a reminder to what is settled and binding upon us. 21. In Sukhdev and Ors. etc. v. Bhagatram Sardar Singh Raghuvanshi and Anr. etc. (1975) 1 SCC 421, one of the questions that fell for considerations was whether an employee of statutory corporation like Oil and Natural Gas Commission established under the Oil and Natural Gas Commission Act 1959, Indian Finance Corporation, established under the Indian Finance Corporation Act, 1948 and the Life Insurance Corporation under the Life Insurance Corporation Act, 1956, was entitled to claim protection of Articles 14 and 16 against the Corpo....
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....be irrelevant in making a finding of State action. If the function does not fall within such a description, then mere addition of State money would not influence the conclusion. 101. In America, corporations or associations, private in character, but dealing with public rights, have already been held subject to constitutional standards. Political parties, for example, even though they are not statutory organisations, and are in form private clubs, are within this category. So also are labour unions on which statutes confer the right of collective bargaining.... 102. Institutions engaged in matters of high public interest or performing public functions are by virtue of the nature of the function performed government agencies. Activities which are too fundamental to the society are by definition too important not to be considered government function. This demands the delineation of a theory which requires Government to provide all persons with all fundamentals of life and the determinations of aspects which are fundamental. The State today has an affirmative duty of seeing that all essentials of life are made available to all persons. The task of the State today is to make possib....
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....ivate enterprise, or conducted for profit." Cf. Helvering v. Gerhardt. A State may deem it as essential to its economy that it own and operate a railroad, a mill, or an irrigation system as it does to own and operate bridges, street lights, or a sewage disposal plant. What might have been viewed in an earlier day as an improvident or even dangerous extension of State activities may today be deemed indispensable. It may be noted that besides the so-called traditional functions, the modern State operates a multitude of public enterprises and discharges a host of other public functions. 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 Government. This is precisely what was pointed out by Mathew, J., in Sukhdev v. Bhagatram where the learned Judge said that "institutions engaged in matters of high public interest or performing public functions are by virtue of the nature of the functions performed government agencies. Activities which are too fundamental to the society are by definition too important not to be considered government f....
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....(2005) 4 SCC 741, this Court had an occasion to consider the role and the nature of functions being discharged by the BCCI. This Court held that the Boards control over the sport of cricket was deep and pervasive and that it exercised enormous public functions, which made it obligatory for the Board to follow the doctrine of 'fairness and good faith'. This Court said: 80. The Board is a society registered under the Tamil Nadu Societies Registration Act. It enjoys a monopoly status as regards Regulation of the sport of cricket in terms of its Memorandum of Association and Articles of Association. It controls the sport of cricket and lays down the law therefor. It inter alia enjoys benefits by way of tax exemption and right to use stadia at nominal annual rent. It earns a huge revenue not only by selling tickets to viewers but also selling right to exhibit films live on TV and broadcasting the same. Ordinarily, its full members are the State associations except Association of Indian Universities, Railway Sports Control Board and Services Sports Control Board. As a member of ICC, it represents the country in the international fora. It exercises enormous public functions. It ....
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....ed whether the Board was discharging public duties in the nature of State functions. Repelling the contention that the functions being discharged by the Board were public duties in the nature of State functions which would make the Board a State within the meaning of Article 12 this Court observed: 29. It was then argued that the Board discharges public duties which are in the nature of State functions. Elaborating on this argument it was pointed out that the Board selects a team to represent India in international matches. The Board makes rules that govern the activities of the cricket players, umpires and other persons involved in the activities of cricket. These, according to the Petitioner, are all in the nature of State functions and an entity which discharges such functions can only be an instrumentality of State, therefore, the Board falls within the definition of State for the purpose of Article 12. Assuming that the abovementioned functions of the Board do amount to public duties or State functions, the question for our consideration is: would this be sufficient to hold the Board to be a State for the purpose of Article 12? While considering this aspect of the argument o....
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....Under the Indian jurisprudence there is always a just remedy for the 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. (Emphasis supplied) 30. The majority view thus favours the view that BCCI is amenable to the writ jurisdiction of the High Court Under Article 226 even when it is not 'State' within the meaning of Article 12. The rationale underlying that view if we may say with utmost respect lies in the "nature of duties and functions" which the BCCI performs. It is common ground that the Respondent-Board has a complete sway over the game of cricket in this country. It regulates and controls the game to the exclusion of all others. It formulates rules, Regulations norms and standards covering all aspect of the game. It enjoys the power of choosing the members of the national team and the umpires. It exercises the power of disqualifying players which may at times put an end to the sporting career of a person. It spends crores of rupees on building and mai....
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....diction Under Article 226 of the Constitution of India. Re: Question No. 2: 31. The Probe Committee, on an interpretation of the provisions of the relevant rules and the material placed before it, recorded a specific finding that Gurunath Meiyappan was working/associated with the IPL as team official of the Chennai Super Kings. The Committee further held that for the operation of the relevant Rules and Regulations it made no difference whether Gurunath Meiyappan was the owner or simply a team official of CSK. That is because so long as Gurunath Meiyappan was a team official, which the Committee found he was, the consequences of his acts of betting would flow even when he was not the owner, or the perceived owner of the CSK. That Gurunath Meiyappan was a team official of CSK owned by India Cements Ltd. was not disputed by either India Cements Ltd. or any other party appearing before us. Mr. Siddharth Luthra, learned senior Counsel appearing for Mr. Gurunath Meiyappan, however, declined to commit himself to any stand on that aspect. When asked if his client was a team official of CSK, Mr. Luthra claimed the right to remain silent as his client was being prosecuted in a Court at Mum....
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....h Meiyappan was indeed indulging in betting. The material assembled in the course of the investigation by the Probe Committee provides a reasonably safe basis for holding that the accusations made against Gurunath Meiyappan stood established on a preponderance of probabilities. We are at any rate not sitting in appeal against the findings of a Domestic Tribunal set up to enquire into the allegations of misconduct levelled against a team official of a participating team. We are not, therefore, reappraising the material that has been assembled by the Probe Committee and relied upon to support its finding. The finding is by no means without basis or perverse to call for our interference with the same. 34. That brings us to the findings recorded against Mr. Raj Kundra, whose part ownership and accreditation as a team official of Rajasthan Royal was not disputed before us. In its report dated 9th February, 2014, the Probe Committee had referred to the statement of Mr. Umesh Goenka, recorded Under Section 164 of the Code of Criminal Procedure by a Delhi Court in which the said Mr. Goenka had stated that Mr. Raj Kundra used to indulge in betting in IPL matches through him. The Probe Comm....
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....y are Team officials within the meaning of the said Rules. Being Team officials they are subject to the Code of conduct for Players and Team Officials prohibiting betting in course of IPL matches and would face appropriate sanctions under the Operational Rules. It would be in fitness of things that pending final determination of the culpability of the Kundras, they be kept suspended from participating in any activity of the BCCI including the IPL matches in view of the materials on record. 36. This Court taking note of the observations made by the Probe Committee not only directed further investigation into the allegations against Mr. Raj Kundra but also provided necessary support to the Probe Committee to do so effectively. The Committee has on the basis of the said further investigation and enquiry come to the conclusion that Mr. Raj Kundra was a 'team official', a 'player support personnel' and 'participant' within the meaning of the relevant rules and that he had indulged in betting. 37. The Committee has, while dealing with the case of Mr. Raj Kundra, referred to as Individual No. 11 in the said report observed: Individual 11: This individual was in....
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....egarding the 'commission of the offence' and that the standard of proof in all cases shall be considered on a sliding scale from, at a minimum, a mere balance of probability upto proof beyond a reasonable doubt from the least serious to the most serious offences. It was contended that the person found guilty is then entitled to file an appeal before the Appeal Commission established Under Section 6.5.4 consisting upto three members to hear and decide the appeal. This procedure, it was argued by Mr. Naphade, could not be deviated from as the rules were binding upon the parties concerned. Reliance in support was placed on the decisions of this Court in T.P. Daver v. Lodge Victoria No. 363 S.C. Belgaum and Ors. (AIR 1963 SC 1144), Ambalal Sarabhai and Ors. v. Phiroz H. Antia (AIR 1939 Bombay 35) and Lennox Arthur Patrick O' Reilly and Ors. v. Cyril Cuthbert Gittens (AIR 1949 PC 313). 39. On behalf of Jaipur IPL Cricket Private Ltd. it was argued by Mr. Ashok Desai, learned senior Counsel that there was no direct allegation against the said company and that the findings recorded by the Probe Committee that Mr. Raj Kundra was the owner of Rajasthan Royals was not wholly cor....
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....Commission is required to follow a fair and reasonable procedure consistent with the principles of natural justice. In terms of Rule 6.3.19 standard of proof can vary between balance of probability and proof beyond a reasonable doubt depending upon the seriousness of the allegations being examined by the Commission. What is important is that the Commission is not in terms of Regulation 6.3.20 bound by strict rules of evidence and that facts relating to any offence can be established by any reliable means including admissions. This procedure can and indeed ought to be followed in cases where there is no real or compelling justification for a departure. Two distinct aspects all the same need be kept in mind in the case at hand. The first is that even the BCCI had not adhered to the prescribed procedure in the present case. Instead of constituting a 'Disciplinary Procedure Commission' comprising three members of IPL Code of Behaviour Committee, the BCCI had appointed a three-member Committee comprising two former Judges of the High Court of Madras with Mr. Jagdale as the third member. The departure came ostensibly because of a public hue and cry over betting by those owning th....
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....als concerned. If that be so, it is difficult to countenance the argument that IPL Operational Rules had any further role to play in the matter of an enquiry into the allegations levelled against the persons concerned. It is equally difficult to appreciate how the significance of the reports submitted by the Probe Committee set up by this Court could be undermined simply because the IPL Operational Rules provide for a Disciplinary Procedure Commission with a particular composition. We have in that view no hesitation in rejecting the contention urged by M/s. Naphade and Desai that the procedure prescribed by the IPL Operational Rules must be followed despite all that has transpired till now or that the report submitted by Justice Mudgal Committee was of no value except that it could provided a basis for setting the Disciplinary Procedure into motion. We need to remember that the direction for appointment of a Probe Committee was issued in exercise of appellate powers vested in this Court in proceedings arising out of Article 226 of the Constitution as also those vested in this Court Under Article 142 thereof. We also need to remember that the directions came in a public interest pet....
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.... grievance sought to be projected by the Jaipur IPL Private Ltd. regarding absence of any notice need be noticed only to be rejected. 43. There was no serious challenge to the findings recorded by the Probe Committee on the merits of the findings against Mr. Raj Kundra. Mr. Desai appearing for Jaipur IPL Cricket Private Ltd., no doubt, contended that the finding was based on certain assumptions, but we do not see any merit in those contentions. Even otherwise strict rules of evidence do not have any application to an enquiry like the one entrusted to the Probe Committee or contemplated by IPL Operational Rules. The essence of the rules applicable even to the Disciplinary Commission is that it ought to adopt a fair and reasonable procedure while enquiring into the allegations of misconduct. Rule 6.3.19 of the Operational Rules specifically states that the standard of proof in respect of all complaints shall be "whether the Commission is comfortably satisfied" with the allegations that the offence has been committed. Such satisfaction could on a sliding scale vary from a mere balance of probability upto proof beyond a reasonable doubt. Rules of evidence are made specifically inappli....
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.... rules provide for expulsion, he shall be expelled only in the manner provided by the rules. (2) The lodge is bound to act strictly according to the rules whether a particular rule is mandatory or directory falls to be decided in each case, having regard to the well settled rules of construction in that regard. (3) The jurisdiction of a civil court is rather limited; it cannot obviously sit as a court of appeal from decisions of such a body; it can set aside the order of such a body, if the said body acts without jurisdiction or does not act in good faith or acts in violation of the principles of natural justice as explained in the decisions cited supra. 45. The present appeals do not arise from a suit as was the position in T.P. Daver's case (supra). More importantly, the present appeals arise out of writ proceedings instituted in public interest, a concept unknown when T.P. Daver's case (supra) was decided. At any rate, the domestic Tribunal under the rules in the instant case was substituted by a Tribunal constituted under the orders of the Court and with the consent of the parties, to serve a larger public good viz. to find out the veracity of the serious allegations o....
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....sed for acts of misconduct if any committed. The relevant provisions of IPL Operational Rules effective from 15th March, 2013 are as under: SECTION 1 - DEFINITIONS 1.1 In these Operational Rules (unless the context requires otherwise) the following expressions shall have the following meanings: xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx Franchisee means an entity which has entered into a Franchise Agreement with BCCI; Franchise Agreement means an agreement between BCCI and a third party (a Franchisee) under which such Franchisee as agreed to filed a Team in the league and pursuant to which such Franchisee enjoys certain rights and has assumed certain obligations as set out therein and as contemplated by these Operational Rules; xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx Person means any individual, company, partnership or any other entity of any kind. Person subject to these Operational Rules means any Franchisee, any Player, any Team Official and/or any Match Official; Player means a person who has been registered as a player with BCCI; xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx Regulations means, together, these Operational Rules and the....
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....bound to comply with such of them as apply to each such Person. 6.1.2 The IPL Regulations referred to in paragraph 1.1 above are as follows; (i)........... ..................... ..................... (viii) the IPL Code of Conduct for Players and Team Officials; ..................... ..................... (xiv) the BCCI Anti-Corruption Code for Participants; (xv) the IPL Auction Briefing; (xvi) BCCI's Minimum Standards for Players and Match Officials Areas at Matches. (xvii) any other code as may be issued by BCCI from time to time which shall be made available either on the Official IPL website, the Tournament Handbook or otherwise by BCCI (and each Person subject to these Operational Rules shall be obliged to ensure that it abides by the latest version of the Regulations) 6.4 SANCTIONS 6.4.2 The Commission may, through BCCI, impose one or more of the following sanctions or actions in relation to any Offence; (a) order compensation and/or an order that the reasonable costs of the proceedings in relation to any Complaint be borne by whichever Person has been found to have committed the Offence or apportioned in cases where two or more Persons have co....
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....player or other person subject to the Operational Rules from playing or involving in matches for a specified period and suspension of the team or franchisee from the league. Payment of money from a person subject to these Operational Rules either to BCCI or to any other person subject to those rules is also provided as one of the permissible sanctions. 50. The upshot of the above discussion is that once Mr. Gurunath Meiyappan and Mr. Raj Kundra are accepted as team officials, their misconduct which has adversely affected the image of the BCCI and the league as also the game and brought each one of them to disrepute can result in imposition of one or more of the sanctions stipulated under Rule 6.4 (supra). It is noteworthy that those sanctions are not limited to Gurunath Meiyappan and Raj Kundra alone but may extend to suspension of the team or the franchisee from the league also. (ii) Permissible action under the Anti Corruption Code for participants: 51. The BCCI claims to have adopted the Anti Corruption Code for achieving, what it describes as certain "fundamental sporting imperatives". We may fruitfully reproduce those fundamental sporting imperatives only to highlight that....
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....equests for information. 1.1.5 The BCCI is committed to taking every step in its power to prevent corrupt betting practices undermining the integrity of the sport of cricket, including any efforts to influence improperly the outcome or any other aspect of any Match or Event. (Emphasis supplied) 52. In Appendix 1 to the Anti-Corruption Code for Participants are given definitions for different terms appearing in the said Code including a definition for expressions like, bet, Corrupt Conduct, domestic match, event, ineligibility, inside information, match, participant, player, player support personnel etc. The relevant part of the Appendix dealt with the definition may also be extracted for the sake of clarity: DEFINITIONS: Anti-Corruption Code. This Anti-Corruption Code promulgated by the BCCI on the Effective date. Bet. Any wager, bet or other form of financial speculation, and Betting is the carrying out of such activity. Corrupt Conduct. Any act or omission that would amount to an offence Under Article 2 of this Anti-Corruption Code or the equivalent provisions of anti-corruption rules of any other National Cricket Federation or the ICC Anti-Corruption Code. Domestic....
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....CES UNDER THIS ANTI-CORRUPTION CODE 2.2.1 CORRUPTION 2.2.1 Fixing or contriving in any way or otherwise influencing improperly, or being a part to any effort to fix or contrive in any way or otherwise influence improperly, the result, progress, conduct or any other aspect of any Match or Event. 2.1.2 Seeking, accepting, offering or agreeing to accept any bribe or other Reward to fix or to contrive in any bribe or other Reward to fix or to contrive in any way or otherwise to influence improperly to result, progress, conduct or any other aspect of any Match or Event. 2.1.4 Soliciting, including, enticing, instructing, persuading, encouraging or facilitating (a) any Participant to commit an offence under any of the foregoing provisions of this Article 2.1 and/or (b) any other person to do any act that would be an offence if that person were a Participant 2.2.2 BETTING 2.2.1 Placing, accepting, laying or otherwise entering into any Bet with any other party (whether individual, company or otherwise) in relation to the result, progress, conduct or any other aspect of any Match or Event. 2.2.2. Soliciting, including, enticing, instructing, persuading, encouraging, facilitati....
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....ipt to the Designated Anti-Corruption Official (or his/her designee). Where such Participant does not make such a report, then that is likely to constitute strong evidence of the commission of this offence. 2.4.2 Failing or refusing to disclose to the ACU BCCI (without undue delay) full details of any approaches or invitations received by the Participant to engage in conduct that would amount to a breach of this Anti-Corruption Code. 2.4.3 Failing or refusing to disclose to the ACU BCCI (without undue delay) full details of any incident, fact or matter that comes to the attention of a Participant that may evidence an offence under this Anti-Corruption Code by a third party, including (without limitation) approaches or invitations that have been received by any other party to engage in conduct that would amount to a breach of this Anti-Corruption Code. Note: All Participants shall have continuing obligation to report any new incident, fact, or matter that may evidence an offence under this Anti-Corruption Code to the ACU-BCCI, even if the Participants' prior knowledge has already been reported. 2.4.4 Failing or refusing, without compelling justification, to cooperate wit....
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....erest in the relevant Match(es) or Event(s); 6.1.1.5 where the offence affected (or had the potential to affect) the result of the relevant Match(es) or Event(s); 6.1.1.6 where the welfare of a Participant or any other person has been endangered as a result of the offence; 6.1.1.7 where the offence involved more than one Participant or other persons; and/or 6.1.1.8 any other aggravating factor(s) that the BCCI Disciplinary Committee considers relevant and appropriate.$$ 6.1.2 mitigate the nature of the offence under the Anti-Corruption Code, namely; 6.1.2.2 the Participant's good previous disciplinary record; 6.1.2.3 the young age and/or lack of experience of the Participant; 6.1.2.4 where the Participant has cooperated with the Designated Anti-Corruption Official (or his/her designee) and any investigation or Demand carried out by him/her; 6.1.2.5 where the offence did not substantially damage (or have the potential to substantially damage) the commercial value and/or the public interest in the relevant Match(es) or Event(s); 6.1.2.6 where the offence did not affect (or have the potential to affect) the result of the relevant Match(es) or Event(s); 6.1.2.....
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....fficial, doctor etc. Mr. Gurunath Meiyappan having been found to be a team official of Chennai Super Kings is a "player support personnel" hence a participant within the meaning of the Anti-Corruption Code. What is important is that apart from Gurunath Meiyappan in his capacity as the team official if any participant connected with CSK, authorises, causes, knowingly assists, encourages, aids, abets, covers up or is otherwise complicit in any act or omission he/she will also be liable to action under the Anti-Corruption Code as if he/she had himself/herself committed the act of misconduct. 56. In terms of Article 6 of the Code, upon consideration of relevant factors the disciplinary committee of the BCCI is empowered to impose an appropriate sanction upon the delinquent having regard to the provisions of Article 6.2 and the Table appearing thereunder. There is, therefore, no manner of doubt that even under the 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 omissio....
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....see Group Company and/or any Owner acts in any way which has a material adverse effect upon the reputation or standing of the League, BCCI-IPL, BCCI, the Franchisee, the Team (or any other team in the League) and/or the game of cricket. 60. In terms of Clause 11.3 (c) (supra) if the franchisee, any franchisee group company and/or any owner acts in a manner that has a material adverse effect upon the reputation or standing of the league, BCCI-IPL, BCCI, the franchisee, the team or any other team and/or the game of cricket, the BCCI-IPL is empowered to terminate the agreement. The expression 'owner' has been defined in Clause 1.1 as under: Owner shall mean any person who is the ultimate Controller of the Franchisee; 61. It is evident from the above provisions that the BCCI-IPL is in situations stipulated under Clause 11.3 competent to direct the termination of the agreement. What would 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 availab....
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....ghter held equity in ICL which gave Gurunath Meiyappan a substantial clout over the affairs of ICL cricketing or otherwise. (iv) Mr. N. Srinivasan and M.S. Dhoni, in their depositions before the Committee took the stand that Gurunath Meiyappan had nothing to do with the cricketing affairs of CSK and that he was only a cricketing enthusiast. That stand was proved to be factually wrong by the Probe Committee who found that Gurunath Meiyappan was a team official who had access to sensitive match information not available to any ordinary cricketing enthusiast. 64. The above circumstances, it was contended by Ms. Chidambaram, highly probablised the cover up theory, having regard to the fact that Mr. Srinivasan had a deep rooted interest in such a cover up no matter as the President of BCCI he was duty bound to do everything humanly possible to discover the truth and allow the law 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 co....
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....ommittee without an agenda item for deliberations of the BCCI and without a proper notice to the members who were supposed to discuss the same. The amendment was pushed through under the residuary and omnibus "any other item" appearing in the agenda even when it was an extremely important matter of far reaching implications which changed a fundamental imperative applicable to all the events organized by BCCI. In substance, the second limb of the challenge was also suggestive of the amendment having been brought about to serve the personal interest of those administering the affairs of BCCI rather than any ethically or morally correct proposition to ensure purity of the game or to nurture the confidence of those who are fond of it. 68. The third ground on which the amendment came under challenge was that the same is opposed to public policy and good conscience. The 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....
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....erit in the argument that the amendment should fall because the same did not figure as an item in the agenda for the meeting in which the same was passed. The Contention that the amendment came as a side wind on the basis of a report of a Committee that was supposed to examine issues touching anti racism also does not carry any conviction. It is true that the circumstances, in which the amendment came about, may create a suspicion as to the bona fides of the exercise but a mere suspicion may not be enough to strike the same down. So long as the forum where the matter was taken-up, discussed and a resolution passed was competent to deal with the subject, procedural deficiencies which do not affect the competence of the authority do not matter much. We have, therefore, no hesitation in rejecting the contention that the amendment is bad because the same came 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 comprehen....
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.... be a judge in his own case (Nemo debet esse judex propria causa) and (2) no decision shall be given against a party without affording him a reasonable hearing (audi alteram partem). Very soon thereafter a third rule was envisaged and that is that quasi-judicial enquiries must be held in good faith, without bias and not arbitrarily or unreasonably. But in the course of years many more subsidiary rules came to be added to the rules of natural justice. Till very recently it was the opinion of the courts that unless the authority concerned was required by the law under which it functioned to act judicially there was no room for the application of the rules of natural justice. The validity of that limitation is now questioned. If the purpose of the rules of natural justice is to prevent miscarriage of justice one fails to see why those rules should be made 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....
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....n impartial. The real question is not whether he was biased. It is difficult to prove the state of mind of a person. Therefore what we have to see is whether there is reasonable ground for believing that he was likely to have been biased. We agree with the learned Attorney General that a mere suspicion of bias is not sufficient. There must be a reasonable likelihood of bias. In deciding the question of bias we have to take into consideration human probabilities and ordinary course of human conduct. It was in the interest of Naqishbund to keep out his rivals in order to secure his position from further challenge. Naturally he was also interested in safeguarding his position while preparing the list of selected candidates. (Emphasis supplied) 76. The significance of the principles of natural justice vis-`-vis Article 14 of the Constitution is no 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 rec....
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....ples will find their application with the same rigor as may be applicable to quasi-judicial functions. Does the amendment to Rule 6.2.4, in any way violate the principles of natural justice or the essence thereof is the real question. 79. On behalf of the Appellant it is contended that the amendment authorizes, contrary to what is demanded by the principles of natural justice, the creation and continuance of a conflict of interest situation. That is what is not permissible on a true and proper application of the principles of natural justice. The contention is that but for the amendment, Rule 6.2.4 would debar any conflict of interest, by forbidding administrators of BCCI from having any commercial interest in the events organized by the BCCI. That is according to the Appellant an ideal situation which gets distorted and corrupted by 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 lif....
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....h conflicts have arisen between the duty which Mr. Srinivasan owes to BCCI and through the BCCI to the cricketing world at large and his commercial if not personal interest in the events which BCCI organizes. The first instance arose when BCCI awarded compensation of a sum of Rs. 10.40 crores to Chennai Super Kings-on account of the cancellation of the Champions League Tournament 2008. It is not in dispute that Mr. Srinivasan was one of those who contributed to the taking of the decision to award that amount towards compensation to his own team. True it is that a similar amount was awarded to Rajasthan Royals the other finalist also, but that does not, mean that to the extent Mr. Srinivasan, participated and deliberated in the proceedings leading to the award of a hefty amount of compensation, he was not privy to a self-serving 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 sel....
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.... of CSK. We have, while dealing with question No. 3, held that the misconduct of Mr. Gurunath Meiyappan and Raj Kundra can result in award of punishment not only to the said two persons but even to the franchisees themselves. That being so, a clear conflict of interest has arisen between what is Mr. Srinivasan's duty as President of BCCI on the one hand and his interest as father-in-law of Mr. Gurunath Meiyappan and owner of team CSK on the other. The argument that Mr. Srinivasan owns only 0.14% equity in ICL is of no avail if not totally misleading when we find from the record that his family directly and/or indirectly holds 29.23% of the equity in the ICL with Mr. Srinivasan his wife and daughter as directors on the Board of that company. 84. It is in the light of the above unnecessary to delve further to discover 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 ....
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....rection they must cast their gaze. The Judges are to base their decisions on the opinions of men of the world, as distinguished from opinions based on legal learning. In other words, the Judges will have to look beyond the jurisprudence and that in so doing, they must consult not their own personal standards or predilections but those of the dominant opinion at a given moment, or what has been termed customary morality. The Judges must consider the social consequences of the rule propounded, especially in the light of the factual evidence available as to its probable results. of course, it is not to be expected that men of the world are to be subpoenaed as expert witnesses in the trial of every action raising a question of public policy. It is not open to the Judges to make a sort of referendum or hear evidence or 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 represen....
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....rined in our Constitution. 88. We may also refer to the decision of this Court in Oil & Natural Gas Corporation Ltd. v. Saw Pipes Ltd. (2003) 5 SCC 705, where this Court was considering the meaning and import of the expression "Public Policy of India" as a ground for setting aside an arbitral award. Speaking for the Court M.B. Shah, J. held that the expression 'Public Policy of India' appearing in the Act aforementioned must be given a liberal meaning for otherwise resolution of disputes by resort to Arbitration proceedings will get frustrated because patently illegal awards would remain immune to Courts interference. This Court declared that what was against public good and public interest cannot be held to be consistent with Public Policy. The following passage aptly summed up the approach to be 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 ....
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....ionally enjoined upon the fora concerned. What must be remembered is that the importance of a judicial approach in judicial and quasi-judicial determination lies in the fact that so long as the court, tribunal or the authority exercising powers that affect the rights or obligations of the parties before them shows fidelity to judicial approach, they cannot act in an arbitrary, capricious or whimsical manner. Judicial approach ensures that the authority acts bona fide and deals with the subject in a fair, reasonable and objective manner and that its decision is not actuated by any extraneous consideration. Judicial approach in that sense acts as a check against flaws and faults that can render the decision of a court, tribunal or authority vulnerable to challenge. 38. Equally important and indeed 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 matte....
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....ularly so when BCCI has in the Anti Corruption Code adopted by it recognized public confidence in the authenticity and integrity of the sporting contest as a fundamental imperative. It has accepted and, in our opinion rightly so, that all cricket matches must be contested on a level playing field with the outcome to be determined solely by the respective merits of the competing teams. The Anti Corruption Code of the BCCI does not mince words in accepting the stark reality that if the confidence of the public in the purity of the game is undermined then the very essence of the game of cricket shall be shaken. The BCCI has in no uncertain terms declared its resolve to protect the fundamental imperatives constituting the essence of the game of cricket and its determination to take every step in 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 integ....
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....hisee gets a share of the broadcast and sponsorship revenue. In representative cricket, the income from sponsors and broadcast fee goes exclusively to the BCCI. 108 (iv) IPL was started as a commercial venture by BCCI to bring more money into the game from the private sector for being ploughed back into the sport in the form of infrastructure, development of the game, players' benefit and ground facilities in all parts of the country. Income from broadcast rights of the National Team is incidental to the membership of the BCCI to ICC that permits the BCCI to field the India Team against other teams of other Member Nations. (v) In IPL, the Selection Committees of BCCI for various age groups have no role to play. Players from all over the world through their respective National Boards 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....
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....e true spirit of the game without letting any corrupting influence come anywhere near the principles and fundamental imperatives considered sacrosanct and inviolable. All told whatever be the format of the game and whatever be the commercial angles to it, the game is what it is, only if it is played in its pristine form free from any sporting fraud. And it is because of that fundamental imperative that these proceedings assume such importance. The fundamental imperatives, to which BCCI is avowedly committed in the Anti Corruption Code, cannot be diluted leave alone neglected or negated. 93. In K. Murugon v. Fencing Association of India, Jabalpur and ors. (1991) 2 SCC 412 this Court held that sports in India have assumed a great importance for the community while international sports 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 th....
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....perior courts must take into consideration as to what is good for the judiciary as an institution and not for the Judge himself. An act of balancing between public interest and private interest must be made. Thus, institution as also public interest must be uppermost in the mind of the court. When such factors are to be taken into consideration, the court may not insist upon a proof. It would not delve deep into the allegations. The court must bear in mind the limitations in arriving at a finding in regard to lack of integrity against the person concerned." 95. The decision in Kannadasan case (supra) was relied upon by a three-Judge Bench of this Court in Centre for PIL and Anr. v. Union of India and Anr. (2011) 4 SCC 1 where this Court dealt with the importance of institutional 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 qual....
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....I event but for the impugned amendment to Rule 6.2.4. What is important, however, is that the challenge in the present proceedings arises in the context of Mr. Srinivasan, President of BCCI having commercial interest in the IPL by reason of the company promoted by him owning Chennai Super Kings. It is common ground that the owner of a team buys the franchise in an open auction. India Cements Ltd. owner of CSK has also bought the Chennai franchise in an open auction held by BCCI. This sale and purchase of the franchises is a purely commercial/business venture for India Cements Ltd. involving investment of hundreds of crores. The franchise can grow as a 'brand' and in terms of franchise agreement executed between franchisee and the BCCI be sold for a price subject to 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 or....
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....tions. According to the allegation levelled against him, he was in constant touch with Mr. Vindoo Dara Singh evidenced by nearly 350 calls made thereto between them during the IPL. 100. The investigating team headed by Mr. B.B. Mishra summed up its conclusion about Mr. Sundar Raman's involvement in its report dated 28th August 2014 in which it stated: "The allegation emanated from a statement of Bindra. The verification so far indicates that Vindoo Dara Singh and Sundar Raman knew each other, but in the years 2012 and 2013, they have hardly made calls to each other. The CDR of Vindoo Dara Singh for the period 01.01.2013 to 20.5.2013 which is available doesn't indicate any call made/received by him to/from Sunder Raman. Virk will have to be requested to join 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 admit....
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.... investigating team and the Probe Committee do not indict Mr. Sundar Raman in clear words. The observations made regarding his role and conduct simply give rise to a serious suspicion about his involvement in the betting affairs of the team owners/officials apart from suggesting that having received information about betting activities in connection with IPL matches, he remained totally inert in the matter instead of taking suitable action warranted under the circumstances. 105. The question then is whether Mr. Sundar Raman can be declared to be completely innocent or does his conduct and activities call for any other probe or investigation. Mr. Sundar Raman was, and continues to be the Chief Operating Officer of IPL. He has held and continues 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 tourna....
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....ot only remove any apprehension of bias and/or influence one way or the other but also make the entire process objective and transparent especially when we propose to constitute a committee comprising outstanding judicial minds of impeccable honesty. 108. The other aspect, which needs attention, is the need for a probe into activities of Mr. Sundar Raman. We are of the view that, once we appoint a Committee to determine and award punishment, we can instead of referring the matter back to Mudgal Committee, request the proposed new Committee to examine the role played by Mr. Sundar Raman, if necessary, with the help of the investigating team constituted by us earlier. 109. The proposed Committee can also, in our opinion, be requested 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. ....
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....hree-member Committee constituted in terms of Para (II) above, shall also examine the role of Mr. Sundar Raman with or without further investigation, into his activities, and if found guilty, impose a suitable punishment upon him on behalf of BCCI. Investigating team constituted by this Court under Shri B.B. Mishra shall for that purpose be available to the newly constituted Committee to carry out all such investigations as may be considered necessary, with all such powers as were vested in it in terms of our order dated 16th May, 2014. (IV) The three-member Committee is also requested to examine and make suitable recommendations to the BCCI for such reforms in its practices and procedures and such amendments in the Memorandum 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 (includi....