Provisions of ESI Act applicable to BCCI as its activities are commercial in nature

Board of Control for Cricket in India Vs Regional Director Employees State Insurance Corporation (Bombay High Court)

Provisions of ESI Act applicable to BCCI due to activities being conducted were commercial in nature

Conclusion: Since the nature of activities conducted by the Board Of Control for Cricket in India were commercial activities, therefore, the appellant Board was covered by the provisions of ESIC Act and was liable to pay ESI contribution on the wages paid to the coverable employees.

Held: BCCI was a society registered under the provisions of Tamil Nadu Societies Registration Act, 1975. The Board was communicated a notice claiming contribution amount  of Rs.5,04,075/- as Employees State Insurance Contribution for the period commencing from May 2007 to March 2014, being subjected to the provisions of ESI Act. The Board clarified that it was a non-profit organization, where no commercial/ economic/manufacturing activities were performed or carried on and it requested the ESI Corporation to reconsider it’s decision of allotment ESI Code. It was the claim of the appellant that it was not primarily engaged or involved in any trading or commercial activities and therefore, it could not be covered within the meaning of Section 1(5) of the ESI Act, 1948. It was held that ESI Court after referring the documents on record, and on appreciating the evidence that had come before it, had held that the ESI Act, 1948 was applicable to the Appellant Board, since it was covered under the definition of ‘shop’ under Section 1(5 ). The Board was admittedly involved in entertaining and from the Memorandum of Association, an inference could be drawn that the Board was carrying out systematic commercial activity and was engaged in providing services to public at large by engaging its employees, organizing events, promoting cricket as a source of entertainment and thereby collecting funds. It was also engaged in acquisition or purchase of movable or immovable assets, tangible or intangible and authorized to sale or transfer the same for achieving its objectives. It also make available the facility of canteen, lay out cricket ground and provide amenities for the convenience and benefits of the members, players and cricket fans, etc. Thus, it was held that the appellant Board was covered by the provisions of ESIC Act and was liable to pay ESI contribution on the wages paid to the coverable employees.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

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