Bombay High Court: In a writ petition filed by businessman Lalit Kumar Modi against the Board of Control for Cricket in India (‘BCCI’) seeking indemnity from a Rs 10.65 Crore penalty imposed by Enforcement Directorate (‘ED’) in 2018, the Division Bench of M.S. Sonak and Jitendra Jain, JJ., imposed costs of ₹1 lakh on the petitioner, directing the amount to be paid to Tata Memorial Hospital, as in matters concerning the alleged indemnification of the petitioner for penalties imposed by the Enforcement Directorate (ED), there was no question of discharging any public function, and therefore, no writ could be issued to the BCCI in this regard.
Mr Lalit Modi was appointed as the Vice President of BCCI. He contended that during this period, he was appointed as the Chairman of the IPL governing body, a subcommittee of the BCCI. During his tenure, the Enforcement Directorate imposed a penalty of ₹10.65 crores on him under FEMA through an order dated 31-05-2018. Aggrieved by the imposition of the penalty, Mr Lalit Modi invoking writ jurisdiction under Article 226 sought writ of mandamus directing the BCCI to pay or deposit the penalty amount with the ED contending that the penalty arose from actions undertaken during his tenure as Chairman of the IPL governing body and claimed that under Rule 34 of the BCCI Rules and Regulations, the BCCI was obligated to indemnify him for such penalties.
Relying on the case of Zee Telefilms Ltd. v. Union of India, (2005) 4 SCC 649 wherein the Supreme Court held that the BCCI was not included in the ambit of ‘State’ under Article 12 of the Constitution, the Court held that the petition and the reliefs sought were not maintainable. The Court held that in matters of alleged indemnification of Mr Lalit Modi against penalties imposed upon on him by the ED, there was no question of discharge of any public function, thus, no writ could be issued to the BCCI.
Thus, the Court held that the reliefs were wholly misconceived, and the petition was frivolous, and dismissed the petition with a cost of Rs.1 Lakh payable by Mr Lalit Modi to Tata Memorial Hospital within 4 weeks. The Court also directed the necessary proof of payment to be filed in this Court.
[Lalit Kumar Modi v. Board of Control for Cricket in India, Writ Petition (Civil) No. 3077 of 2019, decided on 00-00-2024]
Judgment by: Justice MS Sonak
Advocates who appeared in this case :
For the petitioner: Advocates Mohit Goyal and Gaurav Gopal
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