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2005 Supreme(SC) 183

2005(1) Supreme 886
Supreme Court of India
(Under Art. 32 of the Constitution of India)
N Santosh Hegde, S.N. Variava, B.P. Singh, H.K. Sema & S.B. Sinha, JJ.
M/s. Zee Tele Films Ltd. & Anr. —Petitioners
versus
Union of India & Ors. —Respondents
Writ Petition (C) No. 541 of 2004
With
S.L.P. (C) No. 20186 of 2004
Decided on 2-2-2005
Counsel for the Parties :
For the Appearing Parties : Mohan Parasaran, Additional Solicitor General, Harish N. Salve, K.K. Venugopal, Dr. A.M. Singhvi, Iqbal Chagla, Soli J. Sorabjee, C.S. Vaidyanathan, Sr. Advocates, Maninder Singh, Mrs. Prathiba M. Singh, Ms. Minakshi Grover, Ankur Talwar, Angad Mirdha, Ms. Aprajita, Saurabh Mishra, Ms. Radha Rangaswamy, Amit Sibal, Ms. Bharti Tyagi, Ajay Bahl, N. Ganpathy, Nitesh Rana, Vineet Malhotra, B.K. Prasad and Rajeev Sharma, Advocates.

Important pointBoard of Control for Cricket in India cannot be held to be a State for the purpose of Article 12 of the Constitution.

Headnote:(i) Constitution of India—Articles 12, 32 and 226—Tamil Nadu Societies Registration Act—Writ Petition—Maintainability against the Board of Control for Cricket in India—Cricket Board is a society registered under the Act recognised by Union of India, Ministry of Youth Affairs and Sports—Notice inviting tender for grant of exclusive television rights for a period of four years—Board decided to accept the offer of the petitioner—Petitioners deposited a sum of Rs. 92.50 crores in the State Bank of Travancore and agreed to abide by the terms and conditions of offer in response to a draft letter of intent—Writ petition filed by fifth respondent challenging action of Board in granting the contract in favour of 1st petitioner—Board terminated contract of 1st petitioner on the premise that no concluded contract was reached between the parties—Order of the Board terminating the contract challenged in this writ petition filed by 1st petitioner—Reference of matter to the Constitution Bench—Respondent raised an issue as regard maintain­ability of writ petition on ground that the Board is not a ‘State’ within the meaning of Article 12 of the Constitution—Whether the Board can be held to be a State for the purpose of Article 12 of the Constitution—(No) (Majority Judgment).

       Majority Judgment (N. Santosh Hegde, B.P. Singh and H.K. Sema, JJ.)

       Held : The facts established in this case shows the following:–

Judgement Key Points

The ratio decidendi of the legal document can be summarized as follows:

The primary issue addressed in the judgment is whether the Board of Control for Cricket in India (the Board) qualifies as a "State" or "Other Authority" within the meaning of Article 12 of the Constitution of India. The Court examined the nature, functions, control, and recognition of the Board to determine whether it performs public functions or discharges duties of a governmental nature.

It was held that the Board exercises deep and pervasive control over the sport of cricket in India, including the regulation, selection, and disciplinary functions, which are of public importance and closely related to governmental functions. The Board's monopoly status, its role in representing India internationally, and its recognition and de facto control by the Union of India further support the conclusion that it functions as an instrumentality of the State.

Consequently, the Court concluded that the Board answers the description of "Other Authorities" under Article 12, and therefore, it is a "State" for the purposes of fundamental rights enforcement under Part III of the Constitution. This determination is based on the overall assessment of its functions, control, recognition, and the significant impact of its activities on public life and individual rights.

The judgment emphasizes that the classification of an entity as a "State" or "Other Authority" depends on the totality of its functions, control, and influence, rather than solely on statutory creation or formal recognition. This approach reflects a purposive and evolving interpretation of constitutional provisions to accommodate changing socio-economic realities and the expanding scope of State functions.

In sum, the ratio decidendi underscores that bodies discharging public functions, exercising monopoly powers, and closely linked to governmental activities, even if not created by statute, can be deemed "State" within the meaning of Article 12, thereby making their actions subject to judicial review and constitutional scrutiny.


Majority Judgment

Santosh Hegde, J. (on behalf of B.P. Singh and H.K. Sema, JJ. and for Himself)—I have had the benefit of reading the judgment of Sinha, J. I regret I cannot persuade myself to agree with the conclusions recorded in the said judgment, hence this separate opinion. The Judgment of Sinha, J. has elaborately dealt with the facts, relevant rules and bye-laws of the Board of Control for Cricket in India (the Board). Hence, I consider it not necessary for me to reproduce the same including the lengthy arguments advanced on behalf of the parties except to make reference to the same to the extent necessary in the course of this judgment.

2. Mr. K.K. Venugopal, learned senior counsel appearing for the Board has raised the preliminary issue in regard to the maintainability of this petition on the ground that under Article 32, a petition is not maintainable against the Board since the same is not “State” within the meaning of Article 12 of the Constitution of India. It is this issue which is being considered in this judgment.

3. In support of his argument Mr. K.K. Venugopal has contended the Board is not created by any statute and is only registered under the Societies Registration Act, 1860 and that it is an autonomous body, administration of which is not controlled by any other authority including Union of India, (U.O.I) the first respondent herein. He further submitted that it also does not take any financial assistance from the Government nor is it subjected to any financial control by the Government or its accounts are subject to the scrutiny of the Government. It is his submission that though in the field of Cricket it enjoys a monopoly status the same is not conferred on the Board by any statute or by any order of the Government. It enjoys that monopoly status only by virtue of its first mover advantage and its continuance as the solitary player in the field of cricket control. He also submitted that there is no law which prohibits the coming into existence of any other parallel organisation. The learned counsel further submitted that as per the parameters laid down by this Court in Pradeep Kumar Biswas vs. Indian Institute of Chemical Biology & Ors. (2002 5 SCC 111), the Board cannot be construed as a State for the purpose of Article 12 and the said judgment being a judgment of Seven Judge Bench of this Court is binding on this Bench. The argument of Mr. K.K. Venugopal is supplemented and supported by the arguments of Dr. A.M. Singhvi and Soli J. Sorabjee appearing for the other contesting respondents.

4. Mr. Harish N. Salve, learned senior counsel appearing on behalf of the petitioners opposing the preliminary objections submitted that the perusal of the Memorandum and Articles of the Association of the Board as also the rules and regulations framed by the Board indicate that the Board has extensive powers in selecting players for the Indian National team representing India in test matches domestically and internationally. He also pointed out that the Board has the authority of inviting foreign teams to play in India. He also further contended that the Board is the sole authority for organising major cricketing events in India and has the disciplinary power over the players/umpires and other officials involved in the game and sports being a subject under the control of the States, in substance the Board exercises governmental functions in the area of Cricket. He submitted that this absolute authority of the Board is because of the recognition granted by the Government of India, hence in effect even though it is as an autonomous body the same comes under “other authorities” for the purpose of Article 12. He also contended that the Board has the authority to determine whether a player would represent the country or not. Further, since playing cricket is a profession the Board controls the fundamental right of a citizen under Article 19(1)(g) of the Constitution. It is his further contention that many of the vital activ
















































































































































































































































































































































































































































































































































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