Case Note & Summary
The present appeal was filed by the Board of Control for Cricket in India (BCCI) against the judgment and order dated 9th September 2021 passed by the Employees' Insurance Court at Bombay (ESI Court). The ESI Court declared that BCCI is covered within the meaning of 'shop' as per notification dated 18th September 1978 issued by the Government of Maharashtra under Section 1(5) of the Employees' State Insurance Act, 1948 (ESI Act). The ESI Court remitted the matter for determining the contribution from BCCI. BCCI, a society registered under the Tamil Nadu Societies Registration Act, 1975, claimed to be a national governing body for cricket in India, established in 1928, and an autonomous non-profit making sports body. In April-May 2011, the Insurance Inspector surveyed BCCI's office and verified salary details of employees. A visit note was recorded on 10th May 2011, and by communication dated 22nd June 2011, the Regional Director of ESI Corporation sought to cover BCCI under the ESI Act. BCCI challenged this coverage before the ESI Court, which upheld the coverage. Aggrieved, BCCI filed the present appeal. The main legal issue was whether BCCI falls within the definition of 'shop' under the notification. BCCI argued that it is not a shop as it is a non-profit sports body and does not carry out commercial activities. The respondents argued that BCCI engages in systematic commercial activities such as sale of tickets, broadcasting rights, and merchandise, and thus is a shop. The court analyzed the term 'shop' and held that it must be interpreted broadly to include any establishment where systematic commercial activity is carried out. The court noted that BCCI's activities, though non-profit, involve commercial transactions and thus fall within the ambit of 'shop'. The court also held that the non-profit nature of BCCI does not exclude it from being a shop under the ESI Act. The court dismissed the appeal and upheld the ESI Court's order, directing BCCI to pay contributions as determined.
Headnote
A) Employees' State Insurance Act, 1948 - Section 1(5) - Notification dated 18-09-1978 - Definition of 'Shop' - Coverage of BCCI - The issue was whether BCCI, a society registered under the Tamil Nadu Societies Registration Act, 1975, engaged in promoting cricket, falls within the definition of 'shop' under the notification. The court held that BCCI is a 'shop' as it carries out systematic commercial activities such as sale of tickets, broadcasting rights, and merchandise, and thus is covered under the ESI Act. (Paras 1-3) B) Employees' State Insurance Act, 1948 - Section 1(5) - Notification dated 18-09-1978 - 'Shop' - Systematic Commercial Activity - The court reasoned that the term 'shop' must be interpreted broadly to include any establishment where systematic commercial activity is carried out. BCCI's activities, though non-profit, involve commercial transactions and thus fall within the ambit of 'shop'. (Paras 4-6) C) Employees' State Insurance Act, 1948 - Section 1(5) - Notification dated 18-09-1978 - Coverage of Non-Profit Organizations - The court held that the non-profit nature of BCCI does not exclude it from being a 'shop' under the ESI Act, as the Act focuses on the nature of activities rather than profit motive. (Paras 7-8)
Issue of Consideration
Whether the Board of Control for Cricket in India (BCCI) is covered under the Employees' State Insurance Act, 1948 as a 'shop' within the meaning of the notification dated 18th September 1978 issued under Section 1(5) of the Act.
Final Decision
Appeal dismissed. The order of the ESI Court dated 9/9/2021 declaring BCCI covered under the ESI Act as a 'shop' is upheld. BCCI is directed to pay contributions as determined by the ESI authorities.
Law Points
- Interpretation of 'shop' under ESI Act
- Section 1(5) of ESI Act
- 1948
- Notification dated 18-09-1978
- Coverage of non-profit organizations
- Systematic commercial activity test
